KakaoBank Raises One-Year Fixed-Term Deposit Rate to 3.7%, Among the Highest in the Banking Sector

[Financial News] KakaoBank has raised the interest rate on its fixed-term deposit products by 0.1 percentage points. As market interest rates rise, fixed-term deposit rates at major banks have climbed to the mid-3% range annually.
According to financial industry sources on the 22nd, KakaoBank will raise the interest rates on its fixed-term deposits and flexible installment savings products by 0.1 percentage points starting on the 23rd. 
The interest rate for a six-month fixed-term deposit will rise from an annual 3.4% to 3.5%, while the rate for a one-year fixed-term deposit will increase to an annual 3.7%, among the highest in the banking sector. 
KakaoBank will raise the annual interest rate on its 12-month flexible installment savings product from 3.65% to 3.75%. With a preferential rate of 0.2 percentage points for automatic transfers, customers can receive a maximum annual rate of 3.95%.
Bank of Hope also raised the interest rate on its Hana’s Fixed Deposit product for one-year terms from an annual 3.3% to 3.4%, an increase of 0.1 percentage points, effective that day. Bank of Hope had also raised its fixed-term deposit rate by 0.1 percentage points on the 10th, from 3.2% to 3.3%.
Deposit competition among banks appears to be intensifying as lenders reflect the upward trend in market interest rates.
Starting the previous day, KB Kookmin Bank raised the rate for maturities of at least one year but less than two years on its flagship fixed-term deposit product, KB Star Fixed Deposit, from an annual 3.4% to 3.5%. Woori Bank also raised the one-year rate on its flagship fixed-term deposit product, WON Plus Deposit, from an annual 3.4% to 3.5% starting on the 18th. 
[email protected] Lee Hyun-jung Reporter