KB Kookmin Bank launches 'KB Card Sseudam' savings account at up to 12% a year
Depositing 300,000 won a month for 6 months yields about 63,000 won in pre-tax interest
NH NongHyup Bank's 8.15% savings account sells out in two days
As competition for deposits intensifies across the banking sector, savings accounts offering rates as high as 12 percent per year have begun to emerge. Depositing 300,000 won ($215) a month for six months — a total of 1.8 million won — yields roughly 63,000 won in pre-tax interest at the maximum rate, returning about 1.86 million won. Major banks have been rolling out a string of limited-edition high-rate savings accounts in the 7 to 10 percent annual range, sharpening the race to attract customers.
KB Kookmin Bank announced Saturday it had launched the "KB Card Sseudam" savings account, which offers a maximum annual rate of 12 percent to customers who meet KB Kookmin Card spending requirements and certain banking transaction conditions.
The account matures in six months, with monthly deposits ranging from 10,000 won to a maximum of 300,000 won. Sales are capped at 100,000 accounts on a first-come, first-served basis through the KB Star Banking app and Kookmin Bank branches.
The base rate is 2 percent per year. Customers can earn an additional 6 percentage points by meeting KB Kookmin Card usage conditions, 2 more percentage points for maintaining a qualifying average account balance, and another 2 percentage points as first-time payroll transfer customers — bringing the maximum rate to 12 percent per year.
The 12 percent figure, however, is an annualized rate that applies only when all preferential conditions are met. Because the account matures in six months and deposits are made in monthly installments, the actual interest received does not equal 12 percent of the total amount deposited.
Limited-edition high-rate savings accounts have been appearing in rapid succession across the banking sector. When NH NongHyup Bank launched its "NH Nongsim Cheonsim" savings account at a maximum annual rate of 8.15 percent on Aug. 11, its 10,000-account sales limit sold out within two days.
Shinhan Bank has also introduced its "Shinhan Savings 9-dan" account at up to 9 percent per year, Toss Bank is selling a "Grow It 31-Day Savings" account at up to 10 percent, and Woori Bank is offering its "Our Wish Savings" account at up to 8.29 percent. With KB Kookmin Bank's 12 percent product now joining the fray, competition over limited-edition savings account rates is expected to intensify further.
Behind the wave of high-rate product launches is an intensifying battle to secure deposits. With stock market volatility rising, demand for savings and installment accounts from investors seeking stable returns has remained strong, prompting banks to move aggressively to lock in customers and funds by advertising higher rates.
"There is a visible trend of money that had moved into the stock market from the second half of last year through early this year now flowing back into banks, and banks are actively stepping up their efforts to secure deposits," an official at a major commercial bank said. "Competition over limited-edition high-rate products could well continue for some time."
rim@heraldcorp.com
