Savings Bank Deposit Rates Exceed 3.5%, Top Offers Reach 4.5%

Average one-year fixed deposit interest rates at savings banks have now surpassed 3.5% this month. Some savings banks have launched high-yield products offering up to 4.5% annually, stepping up competition to attract customers.

The average annual interest rate for one-year fixed deposits at savings banks, which stood at around 2.92% in early January, climbed to 3.55% as of May 17th. This represents an increase of approximately 0.63 percentage points in about five and a half months.

NH Savings Bank has introduced the 'NH Special Fixed Deposit (Mobile)' with an annual interest rate of 4.5%. Cheongju Savings Bank offers an annual interest rate of 4.2% through four products: 'E-Fixed Deposit', 'Fixed Deposit_HQ', 'Fixed Deposit_Cheonan Branch', and 'Pet Fam Fixed Deposit_Cheonan Branch'. Korea Investment Savings Bank's 'Korea Investment ACE Fixed Deposit' offers 3.45%.

The emergence of these high-yield products is interpreted as savings banks' move to attract funds by raising interest rates, as they face challenges in securing deposits due to money flowing into the stock market. An official from a major savings bank explained, "Most funds are flowing into the stock market, making it difficult for savings banks to procure funds. Consequently, there's a move to attract customers by enhancing interest rate competitiveness."

SBI Savings Bank's 'Fixed Deposit' recorded a 3.7% interest rate. OK Savings Bank's 'OK e-Fixed Deposit' (2.91%) and Welcome Savings Bank's 'Fixed Deposit (Simple Interest)' (2.9%) maintained rates below the average for savings banks.