Nonghyup Deposit and Savings Rates Rise by Up to 0.25 Percentage Points... Rate Hikes Spread Among Commercial Banks

[Financial News] Nonghyup Bank will raise the interest rates on its deposit and savings products. Following the Bank of Korea's policy rate hike, commercial banks are also raising rates on deposit and savings products, intensifying competition to attract deposits.
According to financial industry sources on the 23rd, Nonghyup Bank raised the base interest rates on its deposit and savings products by 0.20 to 0.25 percentage points that day.
Specifically, rates for term deposits rose by 0.20 to 0.25 percentage points, installment savings deposits by 0.20 to 0.25 percentage points, and tax-advantaged savings accounts by 0.25 percentage points.
Nonghyup Bank explained that the increases reflected prevailing market rates, including the Bank of Korea's policy rate hike. The BOK raised its policy rate twice consecutively in July and August, and discussions continue over the possibility of further increases.
As a result, interest rates on banks' deposit and savings products are also trending upward.
Earlier, Hana Bank raised the interest rate on its one-year fixed deposit product, "Hana's Fixed Deposit," from an annual 3.3% to 3.4%, an increase of 0.1 percentage points, effective from the 22nd. Hana Bank had also raised the rate on its fixed deposits by 0.1 percentage points, from 3.2% to 3.3%, on the 10th.
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 deposit product, "KB Star Fixed Deposit," from an annual 3.4% to 3.5%. Shinhan Bank recently raised the one-year rate on "SOL Easy Fixed Deposit" from an annual 3.2% to 3.4%, an increase of 0.2 percentage points. Woori Bank also raised the one-year rate on its flagship fixed deposit product, "WON Plus Deposit," from an annual 3.4% to 3.5%, effective from the 18th.

[email protected] Ye Byung-jeong Reporter