Business · Markets · 3 hrs ago
South Korean savings banks’ 4% deposits rise sixfold in two months
South Korea’s savings banks have sharply increased deposit rates as interest rates rise.
The average rate on one-year savings-bank deposits was 3.87% a year, up from 3.76% a month earlier.
Of 313 products, 127 offered rates of at least 4%, more than six times the 20 available at that level two months earlier.
Savings banks are raising rates as commercial banks compete for deposits and lenders seek to stop customers moving their money.
Major commercial banks’ standard one-year deposit rates were around 3.60% to 3.65%, while some special offers reached 4%.
Higher deposit rates may draw money away from investments; deposits at South Korea’s five largest banks rose by about 24.4 trillion won in the previous month.
Further rate rises may follow if market rates and competition for deposits continue to push upward.
The number of South Korean savings-bank term deposits offering annual rates of at least 4% rose more than sixfold in about two months.
The Korea Federation of Savings Banks counted 127 such products among 313 offerings, or 40.6%, compared with 20 of 311 products at the end of August.
The average one-year savings-bank deposit rate was 3.87%, up from 3.76% a month earlier.
The article attributes the rate increases to rising market rates and commercial banks raising deposit rates, prompting savings banks to compete to retain customers.
- Who
- South Korean savings banks.
- What
- The number of their term deposit products offering annual rates of at least 4% rose more than sixfold in about two months.
- When
- The figures were reported on November 4; the comparison is with the end of August.
- Where
- South Korea.
- Why
- Savings banks are raising rates amid rising market rates and commercial banks’ efforts to attract deposits, to prevent customers from leaving.
This story does not have two clearly opposing sides.
The average savings-bank one-year term deposit rate was 3.81%.
The average rate had fallen to 3.73%, and 20 of 311 products offered at least 4%.
The average rate rose back above 3.8%, according to the article.
The average one-year rate was 3.87%, and 127 of 313 products offered at least 4%.
- Average rate
- 3.87% for one-year savings-bank term deposits
- Products at 4% or more
- 127 of 313, or 40.6%
- End-August comparison
- 20 of 311 products offered at least 4%
- Highest named rate
- 4.13% at Yeogaram Savings Bank’s The Premium Revolving Term Deposit
- Five-bank deposit balance
- 1,030.488 trillion won at the end of the previous month