I heard that a short term deposit has come out… Merit is ‘ok’
‘Very short term installment savings’ with a maturity of one month are being released one after the other in the banking sector. The very short term savings account was created to provide consumers with a variety of financial product options.
In the banking sector, it is expected that the 1-month installment savings product will be able to target the MZ generation, who prefer short-term payments, because it can manage small amounts in a very short period of time. However, among consumers, it is noted that the choice of very short-term installment savings is low because the interest to be paid is actually small.
In November last year, the Monetary Policy Committee of the Bank of Korea decided to revise the ‘Regulations on Loans and Deposits of Financial Institutions’. Accordingly, from April this year, the Bank of Korea changed the minimum maturity of periodic deposits and mutual installments specified in the ‘Appendix’ from 6 months to 1 month.
This is the first review since 27 years since 1995. Meanwhile, there was no specific review request, so it was carried out, but recently, as the recognition of business rights has changed, the minimum maturity has been reduce
Commercial banks also launch very short term savings accounts for one month. Previously, on the 3rd, IBK Industrial Bank Korea reorganized the ‘IBK D-day Installment Savings’ and shortened the minimum subscription period to 1 month, and K-Bank allowed users to choose between 1 month and 3 months as the subscription period for the ‘Code K Free Installment Savings’. .
Hana Bank also renewed ‘Hana Timing Installment Savings’ from the 7th and introduced a one-month maturity product with an annual interest rate of 3.95%. KB Kookmin Bank will launch ‘KB Special Installment Savings’, which can be fixed for one month maturity, starting on the 12th. Even if you choose a one month maturity, the maximum interest rate is 6% per annum. Shinhan Bank plans to launch a very short-term installment savings account within this month, and Woori Bank is also reviewing it.
However, in some industries, there is also a view that very short-term installment savings are almost worthless. This is because the one month installment savings account has a short subscription period, making it difficult to enjoy interest benefits. In the case of ‘KB Special Installment Savings’, which has the highest interest rate among installment savings products with a maturity of 1 month, the maximum monthly payment is 300,000 won. Even if the maximum interest rate of 6% is applied, including the prime interest rate, the interest that can be received at maturity is approximately 1,269 earned after tax.
In the case of other banks with low interest rates or the maximum payment, there are places where the interest you can receive after one month of maturity is only about 400 won. Also, matching the favorable interest rate is not easy. In the case of the ‘KB Special Installment Savings’, the basic annual interest rate of 2.0% is added to the preferential interest rate of 1.0%, 1.0%, and 2.0% points, respectively, for achieving the target amount, completing the star collection, and recommending a friend. If a financial user does not meet the conditions for preferential interest rates, even if they enter the maximum payment (300,000 won), they will only receive 423 interest earned (after tax) receive it when they mature.
An official from the Financial Services Commission said, “Financial consumers should fully check the payment conditions for the preferential interest rate hidden behind the maximum interest rate.” You can get a lower interest rate,” he advised.
A banking industry official said, “In the case of an installment savings product, whether it’s a 1-month installment savings account or a 3-year installment savings account, bank interest is all based on the annual interest rate.” 0.4%,” he explained.
Another person in the banking sector said, “As consumers often ask for installment savings to accumulate a large amount of money, very short-term installment savings have many merits as installment savings.” he noted. “In the case of very short-term installment savings, the interest rate is higher than that of demand deposits, so it is possible to widen the range of choices for consumers, but as it is a short-term product, it seems difficult . to attract attention from different consumers because the interest rate is low,” he added.
Hana Bank, Best Bank Award 2023 in Korea
Hana Bank announced on the 7th that it has won the ‘Best Bank 2023 in Korea 2023’ award chosen by ‘Global Finance’, a global financial and economic magazine.
Hana Bank has been selected as ‘Korea’s Best Foreign Exchange Bank’ for 22 consecutive times and ‘Korea’s Best Trade Finance Bank’ for a total of 22 times. This time, it was selected as the ‘Best Bank in Korea’ for the 7th time in total, and was once again proven internationally for its outstanding capabilities in selected areas such as market dominance, service quality, and technology in the banking industry.
Global Finance is about Hana Bank △ active localization sales strategy in the global financial market based on unmatched global capabilities △ innovative trade finance digital products and customer-oriented services △ Korea’s largest contracts with 1206 of banks in 104 countries worldwide Exchange transaction contracts with △ The fact that it maintains unwavering leadership in the field of foreign exchange and trade finance has been highly evaluated.
“Gather around, everyone~”… Kakao Bank Launches ‘Choi Ae Savings’
Kakao Bank has launched a service that allows users to save and record every meaningful moment with their loved ones.
Kakao Bank announced on the 7th that it will launch the fandom-based service ‘Choi Ae Savings’ on the 18th. This is the first service of Kakao Bank’s new acceptance product, Record Bankbook.
Kakao Bank explained that it digitally reinterprets the “virtue culture” where “favorites” such as idol stars and athletes save a certain amount whenever they perform a certain action, from the customer’s perspective.
Choi Ae is a standard language word that means ‘love the most’ and means the object you like the most. A virtue refers to the act of passionately liking a particular field and collecting or digging into related things. Both words are widely used mainly in idol fan culture.
Detailed product descriptions relating to the favorite installment savings will be released in time for release on the 18th. Kakao Bank will hold a release notification request event until the 17th before the launch of the favorite installment savings account. We provide gifts like Galaxy S23 Ultra (5 people), Airpod Max (10 people), Cultureland Gift Voucher of 10,000 won (5000 people), etc.
Tongyang Life Insurance conducts civil complaint prevention education for perfect sales culture
Tongyang Life Insurance announced on the 7th that it will conduct civil complaint prevention training for executives and employees in the first half of 2023 to protect financial consumers and establish a complete sales culture. Complete sales are the three basic requirements that an insurance lawyer must adhere to when selling insurance.
The purpose of this training is to share cases of major consumer complaints that occur frequently with employees to identify and raise awareness of incomplete sales factors.
In March and April this year, on-site training was held for around 30 branches, and separate on-site training was also held for around 200 call center agents.
Through this, Tong Yang Life intends to establish a perfect sales culture, listen to the needs of the field, and strengthen communication between the head office and the sales site. In addition, after completing the on-site training, a survey is carried out to evaluate the content of the training, and it is a policy to collect improvement points and actively reflect them in the work.
Hyundai card raises credit rating outlook
On the 7th, international credit rating agency Fitch upgraded Hyundai Card’s credit rating outlook from ‘BBB Stable’ to ‘BBB Positive’. This is the first time in 11 years since Hyundai Card has held ‘BBB Stable’ since June 2012.
Fitch said in a report on the 30th of last month (local time), “The possibility of supporting parent companies has been strengthened due to the improved performance of Hyundai Motors and Kia, and Hyundai Card is an important strategic partner that accounting for the majority. of Hyundai Motors and Kia’s credit card sales in Korea. Taking this into account, we have upgraded our forecast.”
Hyundai Card, as a financial company of Hyundai Motor Group, is an exclusive Hyundai Motor/Kia credit card (PLCC) that provides benefits for the accumulation and use of specialist points in mobility-related industries in connection with Hyundai Motors membership programs/ Kia, ‘Blue Members’ and ‘Kia Members’.’ is operating
An official from Hyundai Card said, “We expect to provide high-quality financial services to customers by establishing a more solid financial position through this upgrade of credit rating outlook.”
‘Financial Hot & New’ is a weekend corner of Biz Watch’s Economic Section that summarizes new financial products introduced during the week and notable moves by financial companies such as banks, insurance, and credit cards. [편집자]
