"If Stock Prices Rise, We’ll Pay 10% Deposit Interest"... Banks Move to Attract Retail Investors
- Input
- 2026-05-28 07:51:18
- Updated
- 2026-05-28 07:51:18
[Financial News] Major banks are rolling out Index-Linked Deposit (ELD) products one after another as the stock market strengthens. These products guarantee principal while offering additional returns if stock prices rise to a certain level, and banks expect them to ease concerns about deposit interest rates while limiting risk.
According to the financial sector on the 27th, four commercial banks — KB Kookmin Bank, Industrial Bank of Korea, Busan Bank, and Nonghyup Bank — launched ELD products this month.
KB Kookmin Bank’s "KB Star KOSPI200 Index-Linked Deposit No. 26-4" is a one-year product based on the KOSPI 200 Index. It is offered in three types: an upward-seeking type with a minimum rate guarantee, an upward knock-out type aimed at high returns, and a range-return type.
The upward knock-out type offers a maturity rate ranging from a minimum annual 2.00% to a maximum annual 10.75%, depending on the rise in the underlying asset. However, if the KOSPI 200 Index rises more than 25% above the benchmark index during the term, the maturity rate is fixed at the minimum rate of 2.00% per year.
Nonghyup Bank also launched Index-Linked Deposit No. 26-3, a one-year product that offers returns ranging from a minimum annual 2.3% to a maximum annual 7.25%. Depending on the return conditions, it is divided into three types: Stable I, Return I, and Return II. The highest-yielding Return II type is capped at a maximum maturity return of 7.25% if the index rises more than 45%.
Industrial Bank of Korea also launched IBK Index-Linked Deposit 26-1 in one-year and six-month maturities. Among them, the "Stable Upward Knock-Out 6-Month" product offers returns of 0.5% to 6.3% per year if the KOSPI 200 Index rises by no more than 20% above the benchmark index. The "Stable Upward Knock-Out 1-Year" product is linked up to a 30% rise, with returns ranging from 1.5% to 6.0% per year. Busan Bank also sold its "BNK Index-Linked Time Deposit 3" product through the 20th.
bng@fnnews.com Kim Hee-sun Reporter