Refer Report
Banks are releasing short-term products one after another. This is to attract customers who are waiting for the last train of high interest rates ahead of the base rate cut.
Gwangju Bank recently introduced the ‘Challenge Golden 100 Savings’. This is a product that provides preferential interest rates when individual customers save 1 million won through free savings. The basic interest rate is only 1.0% per annum, but if you save more than 1 million won for 6 months, you get 3.0% per annum, and if you have not held a Gwangju Bank savings account in the past year, you get 3.1% per annum, and so on, giving you an additional preferential interest rate of up to 7.1% per annum. A Gwangju Bank official explained, “It reflects the recent customer trend of emphasizing short-term achievement.”
These short-term goal achievement products that started in Internet banks are spreading to all banks. As the interest rate cut is approaching, more and more customers are looking for the last high-interest product, and related products are lining up.
Shinhan Bank launched the ’40-week Mom Savings’ last month. The maturity period was set according to the pregnancy period (40 weeks). In order to overcome the low birth rate, Shinhan Bank decided to provide preferential interest rates and childbirth congratulatory money to customers who give birth during the subscription period. The basic interest rate is 2.5% per annum, and 2.0% points are added per annum when paying for 36 weeks or more. If the preferential childbirth interest rate (0.5% points per annum) is added, the maximum interest rate of 5.0% per annum can be applied.
Short-term high-interest products that combine fun, such as quizzes and pedometers, are also increasing. Kookmin Bank is selling a new product, ‘KB Star Quiz King Savings’, that combines finance and education. It has introduced a new method that supports preferential interest rates by solving Korean history quizzes. Applicants are individuals over the age of 14 with real names and can deposit from 1,000 won to 200,000 won per month for 100 days. The basic interest rate is 2.0% per annum, and a preferential interest rate of up to 8.0% points is added, providing a maximum interest rate of 10.0% per annum. If you participate in the Korean history daily quiz once a week, you can receive an additional 3.0% points per annum.
Jeonbuk Bank, in collaboration with Kakao Pay, has launched a ‘walking savings’ that offers preferential interest rates based on the number of steps taken. This product is for first-time customers and the total subscription period is 6 months. You can deposit between 50,000 and 300,000 won per month. Depending on the number of weekly steps, you can receive a preferential interest rate of up to 6.0% per year, for a total interest rate of up to 7.0% per year. Jeonbuk Bank explained, “Even if there are days when you cannot meet the number of steps due to the situation, we have granted ‘exemption rights’ so that you can achieve the preferential conditions as much as possible.”
As deposit interest rates are gradually decreasing, special 6-month deposits have also appeared. Jeonbuk Bank has decided to offer an annual interest rate of up to 3.55% (base interest rate 3.40%) for 6 months through the ‘6-month real interest rate special deposit’. It plans to accept applications for subscriptions up to 100 billion won. Individual customers can receive preferential interest rates if they have automatic utility bill transfers three or more times, and corporate customers can receive preferential interest rates if their average account balance for three months is 5 million won or more.
Reporter Park Jae-won wonderful@hankyung.com
Source: Korean