As the era of zero interest rates came to an end after 20 months, deposit and savings rates rose ‘suddenly’, and as funds flowed from the growing anxiety in the stock market, ‘bundled money’ is gathering in banks. This is a so-called ‘reverse money move’ phenomenon, with bank deposit interest rates reaching 2.1% and savings up to 4.2% coming out one after another.
According to the banking industry on the 5th, the balance of time deposits at the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank, stood at 654,943.8 billion won as of the end of November, compared to 632.4 trillion won at the end of September, 22 trillion won in two months. increased by 5268 billion won. After the Bank of Korea raised the base rate to 1.00% on the 25th of last month, about 2 trillion won increased in five business days. Analysts in the banking sector say that liquidity funds floating in the market have moved to banks due to the base rate hike. In fact, the phenomenon of capital outflows in the stock market is progressing rapidly. According to the Korea Exchange, the daily average KOSPI trading value fell sharply to 10.84 trillion won at the end of last month after recording 15,521.8 billion won in August.
A commercial bank official said, “Uncertainty in the stock or coin market has increased due to the risk of ‘Omicron’ risk and inflation, which is a new variant of COVID-19. A ‘reverse money move’ phenomenon is taking place,” he analyzed.
The bank’s unusually immediate reflection of the base interest rate… High interest rate ‘return of special edition’
Commercial banks have been raising interest rates exceptionally quickly after the Bank of Korea decided to raise the base rate on the 25th of last month. This is interpreted as a measure in consideration of recent customer complaints due to the widening of the loan-to-deposit interest rate gap.
First, by the end of this year, SC First Bank will hold an event that provides a special interest rate of 2.1% per annum to first-time customers and existing customers who sign up for term deposits by the end of this year. The subscription amount is between 30 million won and 2 billion won, and in the case of existing customers, it is based on the increased funds compared to the previous month. MoM increase means the amount that is greater than the larger of the average balance of the previous month and the balance at the end of the month of general deposits, trust contracts, and funds (excluding bancassurance). The size of the event is limited to 100 billion won, and the event ends early when the limit is exhausted.
At the same time, the interest rates for various deposits and savings accounts are also raised by 0.2 to 0.4 percentage points sequentially, such as raising the interest rate for e-green save deposits by up to 0.4 percentage points in line with the Bank of Korea’s base rate hike.
NH Nonghyup Bank also raised interest rates on deposits and savings accounts by 0.25% to 0.4% from the 30th of last month.
First, the basic interest rate for deferred deposits such as general time deposits, free accumulation time deposits, and great satisfaction real tax deposits was raised by 0.25% to 0.3% points. In addition, the basic interest rate for savings-type deposits increased by 0.25% to 0.4% points, housing subscription deposits and installments by 0.25% points, and individual and corporate MMDA partial sections by 0.1% points.
Local banks are also stepping in.
First, BNK Busan Bank increased the interest rates on time deposits and savings accounts by up to 0.50 percentage points per product. In line with the increase in the Bank of Korea’s base rate, savings products increased from 0.30 percentage points to a maximum of 0.50 percentage points, and deposit products from 0.25 percentage points to a maximum of 0.40 percentage points.
The interest rate for the childbirth promotion product, ‘Child Love Free Savings (2-year system)’ was raised by 0.50 percentage points from the previous maximum of 1.20% to 1.70% a year, and the ‘BNK My Way Savings Savings’, a product for youth It was raised by 0.30 percentage points to 1.60%.
BNK Kyongnam Bank raised the deposit interest rate by up to 0.3 percentage points, and DGB Daegu Bank also raised the deposit interest rate for ‘money rolling deposits’ by 0.4 percentage points.
Prior to this, KB Kookmin, Shinhan, Hana, and Woori Bank also raised interest rates on deposits and savings accounts by up to 0.4 percentage points. At Kookmin Bank, the maximum interest rate for the non-face-to-face exclusive product, KB Family Happy Savings, has been changed to 3.10% per annum based on the three-year maturity period, and the maximum interest rate for KB DoubleMoa deposits has risen to 1.80% per annum for one year. Interest rates on KB member preferential savings and business preferential savings, which are preferential products related to small business owners, were also raised by up to 0.40 percentage points. Accordingly, the maximum interest rate for the 3-year KB member preferential installment savings account rose from 2.10% a year to 2.50% a year for the business operator preferential installment savings account from 2.45% a year to 2.85% a year.
In the case of deposits, the interest rate of the KB Green Wave 1.5℃ term deposit, an ESG-specialized product, has been raised by 0.30 percentage point this time, so it can be applied to a maximum of 1.7% per annum for one year. In addition, KB DoubleMoa Deposit, which can only be joined by those over 50 years of age, pays 1.8% interest (before tax) from 10 million to 40 million won per annum. If you receive a salary or pension for more than 6 months with a Kookmin Bank account at a basic interest rate of 1.1%, you will receive a preferential interest rate when you sign up for and maintain an ISA, etc. of 5 million won or more.
An official from Kookmin Bank explained, “The decision was made to raise the deposit rate in consideration of the Bank of Korea’s base rate hike and market interest rate rise.”
Shinhan Bank also raised interest rates for 36 types of time deposits and savings accounts by up to 0.40 percentage points from the 29th in accordance with the Bank of Korea’s increase in the base rate. With this interest rate increase, the flagship product ‘Hello, Nice to meet you’ will receive a maximum of 4.2% per annum with a maximum of 500,000 won per month, and ‘Shinhan R.Sol Savings’ will receive an interest rate of 2.6% per annum with a maximum maturity of one year. . The one-year ‘Didim Seed Savings Deposit’ was changed to 2.05% per annum with the interest rate increased by 0.4 percentage points, while the future-designed Krevas annuity deposit with the three-year maturity was raised by 0.3 percentage points to 1.85% per annum.
It is also worth paying attention to the ‘Sol-Convenient Term Deposit’, which has no limit on the amount of subscription. There is no limit on the amount of subscription if it is more than 10,000 won, and the interest rate benefit is pretty good at 1.65% per year (when registering online).
A Shinhan Bank official said, “In line with the recent rise in market interest rates and the Bank of Korea’s base rate hike, the interest rates for customers’ deposits and savings accounts have also been raised.” said
On the 26th, Hana Bank raised the interest rates of 5 types of savings deposits, including ‘Main Transaction Hana Monthly Compound Interest Savings’ by 0.25-0.4 percentage points, and Woori Bank also increased the interest rates by 0.2-0.4 percentage points for 19 time deposits and 28 savings products. Food products were raised by 0.1 to 0.15 percentage points, respectively.
On the other hand, if you use a card, ‘net savings’, which adds a preferential interest rate, also stands out. It may be the optimal product depending on individual circumstances and conditions. A representative product is K-Bank’s ‘Hot Deal Savings x Woori Card’ savings account, with a base interest rate of 1.8% plus a preferential rate of 8.2%, with an annual maximum interest rate of 10%. The maturity is one year and the deposit amount is up to 200,000 won. In addition to this, even if it is not a special savings account, the interest rate for banknote savings accounts is 1.05% to 3.30% per annum based on 24 months. For deposits, a minimum of 0.50% to 1.92% is applied.
An official from the banking sector said, “After the base rate hike, inquiries about deposits and savings accounts have increased significantly. Since interest rates are likely to continue to rise, signing up for a 3-month ultra-short-term product can also be a way of investing.”
[류영상 매경닷컴 기자]
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