A one-year fixed-term deposit offering an annual rate exceeding 4% has appeared in the banking sector for the first time in two years and three months. Deposit rates are rising rapidly as market interest rates climb and banks' need to raise funds intensifies.
According to financial industry sources on the 29th, Gwangju Bank raised the maximum annual rate on its "Good Start Deposit" with a one-year maturity to 4.04% on the same day. This followed an increase from 3.99% on the 23rd to 4.02% the previous day, marking an additional hike of 0.02 percentage points (P) in just one day.
The product offers a base rate of 3.54% per annum, plus preferential rates of 0.4 percentage points (P) for first-time deposit customers and 0.1 P for agreeing to service notifications, allowing customers to relatively easily secure the maximum rate.
A Gwangju Bank official said, "We have consecutively raised deposit rates in response to our goal of acquiring new customers and the recent rise in market interest rates."
The last time a one-year fixed-term deposit at a bank exceeded 4% per annum was about two years and three months ago, in June 2024. At that time, DGBDaegu Bank (now iM Bank) sold "DGB Together Deposit" with a maximum annual rate of 4.15% as an event to mark its transition to a commercial bank, but products exceeding 4% have since disappeared from the banking sector.
Deposit rates at other banks are also approaching 4%. Jeonbuk Bank offers a maximum annual rate of 3.93% for one-year deposits, Busan Bank 3.92%, and Gyeongnam Bank 3.85%. Among internet banks, KakaoBank leads with 3.70%, followed by K bank at 3.61% and Toss Bank at 3.60%, trailing behind the regional banks.
While major commercial banks offer relatively lower rates, they have all raised deposit rates since September. The current one-year fixed-term deposit rate at NH NongHyup Bank is 3.55% per annum, while KB Kookmin and Woori Bank stand at 3.50%, and Shinhan and Hana Bank at around 3.40%. In particular, Kookmin Bank, Woori Bank, and Hana Bank have raised rates twice this month, reflecting a broader trend of rising deposit rates across the banking sector.
in FINANCE
