Business · Economy · 1 day ago
South Korean banks raise rates on more new fixed-term deposits
In South Korea, the share of new fixed-term deposit amounts paying at least 4% reached 10.6% in September, up from 0.5% in August.
The figures count the value of new deposits, not the number of accounts.
Another 70.8% of new deposit amounts paid between 3% and 4%, bringing the share paying at least 3% to 81.4%.
The rise followed two Bank of Korea rate increases in July and August, with deposit rates responding in September.
Higher rates can benefit people putting money into savings, but household borrowing costs also rose.
In September, only 9.6% of new household loan amounts had rates below 4%, down from 57.6% a year earlier.
The share of new household loans at 5% or more climbed to 31.6%, up from 20% in August and 7.2% a year earlier.
The share of newly issued fixed-term deposits in South Korea paying at least 4% rose to 10.6% in September.
That was more than 20 times the 0.5% share recorded in August, based on deposit value rather than account numbers.
The share paying at least 3% reached 81.4% in September.
The change followed two consecutive Bank of Korea rate increases in July and August.
Household borrowers also faced higher rates, with 31.6% of new loans carrying rates of at least 5% in September.
- Who
- South Korean banks and households placing deposits or taking out loans.
- What
- The share of new fixed-term deposits paying at least 4% rose sharply. New household loans also increasingly carried rates of at least 5%.
- When
- September 2026, compared with August and earlier months.
- Where
- South Korea.
- Why
- The article says the rise in deposit rates followed the Bank of Korea’s rate increases in July and August, with a time lag.
This story does not have two clearly opposing sides.
The share of new fixed-term deposits paying at least 4% was 42.6%.
The Bank of Korea raised its policy rate in consecutive months.
The share of new fixed-term deposits paying at least 4% was 0.5%.
The share reached 10.6%, while 31.6% of new household loans carried rates of at least 5%.
- New deposits paying at least 4%
- 10.6% of new deposit value in September
- Monthly increase
- More than 20 times the August share of 0.5%
- Deposits paying at least 3%
- 81.4% in September
- New household loans at 5% or more
- 31.6% in September
- New household loans below 4%
- 9.6% in September