In response to the Bank of Korea's interest rate hike, the five major banks in South Korea—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—have all raised their deposit rates.
According to the financial sector on July 23, Hana Bank has increased the interest rate on its flagship one-year time deposit product, 'Hana Time Deposit,' from 2.90% to 3.20%, a rise of 0.30 percentage points.
NH Nonghyup Bank also raised the rate on its main product, 'NH All-in-One e-Deposit' (one-year maturity), from 2.95% to 3.25%. The interest rates for various savings products were increased by 0.25 to 0.30 percentage points, and rates for subscription deposits and special savings were each raised by 0.25 percentage points.
An official from the banking sector stated, "We adjusted the deposit rates to reflect the Bank of Korea's interest rate hike and market conditions."
Following increases by Shinhan, KB Kookmin, and Woori banks, both Hana and NH Nonghyup have now raised their deposit rates, resulting in all five major banks offering one-year time deposit rates at or above 3%.
Previously, Shinhan Bank raised the interest rate on its 'Sole Comfortable Time Deposit' from 2.90% to 3.20% starting July 21. KB Kookmin Bank followed suit on July 22, increasing the rate on its 'KB Star Time Deposit' from 2.90% to 3.20%. Woori Bank had raised rates on its key savings products by 0.25 to 0.30 percentage points on July 20, with the maximum rate for its flagship 'WON Plus Deposit' increasing from 2.90% to 3.20%.
As banks continue to raise deposit rates, funds are increasingly flowing into these institutions. As of July 15, the total balance of time deposits at the five major banks reached 965.29 trillion won, an increase of 15.89 trillion won from the end of last month, which stood at 949.40 trillion won.
* This article has been translated by AI.
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