South Korean commercial banks are competing for deposits, raising time deposit rates to as high as 3.5% in step with rising market interest rates.
KB Kookmin Bank raised the rate on its KB Star Time Deposit product by 0.1 percentage point on the 21st. The move came just one week after the bank lifted rates on the same product by up to 0.6 percentage point on the 14th.
As a result, the rate on deposits with maturities of one year to less than two years rose to 3.5% from 3.4%. Rates for maturities of six months to less than nine months and nine months to less than one year each climbed to 3.25% from 3.15%. Deposits maturing in two years to less than three years pay 3.0%, while three-year deposits pay 2.6%.
Woori Bank also raised the one-year rate on its WON Plus Deposit product to 3.5% from 3.4%, effective from the 18th. Its Woori First Transaction Preferential Time Deposit offers a rate of up to 3.8% for customers who meet conditions including first-time transaction requirements.
The country's five largest banks have raised deposit rates one after another this month. Shinhan Bank lifted the one-year rate on its Sol Convenient Time Deposit to 3.4% from 3.2% on the 9th. Hana Bank adjusted the one-year rate on its Hana Time Deposit to 3.3% from 3.2% on the 10th.
