As market interest rates rise, major commercial banks are raising interest rates on deposits one after another.
According to the financial sector on the 10th, Hana Bank raised the one-year maturity rate on its flagship time deposits product, "Hana Time Deposits," by 0.1 percentage point (p) from 3.2% a year to 3.3% starting today. This follows a hike in July that lifted the product's rate from 2.9% to 3.2% a year, with an additional increase decided two months later.
Woori Bank also raised the rate on its flagship time deposits product, "WON Plus Deposits," by 0.2%p from 3.2% a year to 3.4% a year. NH Nonghyup Bank will likewise raise the rate on its time deposits "NH All One e-Deposits" by 0.2–0.3%p starting on the 11th. Products with maturities of at least six months and less than two years will rise by 0.2%p, and those with maturities of at least two years and less than three years will rise by 0.3%p.
KB Kookmin Bank is offering a 3.2% rate on "KB Star Time Deposits," and Shinhan Bank is offering 3.3% on "Shinhan My Plus Time Deposits," with all selling deposits in the 3% range. As deposit rates continue to rise, the outstanding balance of time deposits at these five major banks has swelled to around 1,000 trillion won since early last month.
The Bank of Korea (BOK) said the previous day that domestic bank deposit balances turned from a 30 trillion won decrease in July to a 100 billion won increase in August, and in particular, time deposits rose by 20.3 trillion won, continuing their growth following the previous month (+42.3 trillion won).