As internet-only banks recently raised the interest rate for parking accounts, savings banks are also raising interest rates for parking accounts to attract short-term funds. As interest rates on commercial bank deposits rose, the attractiveness of parked passbooks seemed to diminish.
▷Related article: Getting out of the ‘parking account’… Competition in the bank and savings banks heats up (June 30)
Interest is also applied if you leave the parking account for a day and the increased interest rate is automatically applied to the deposit without cancellation or separate re-registration. Therefore, it has the advantage of receiving contractual interest regardless of the deposit amount, period and number of deposits and withdrawals.
It is a product suitable for consumers who do not want to lock up their money for a long time, but also want to receive an extra cent in interest. Like existing deposits, parking accounts are protected up to 50 million won under the Depositor Protection Act.
According to the financial industry on the 27th, OK Savings Bank increased the maximum interest rate of the “OK Second Bankbook” and “OK Bankbook” parking account to 4% per annum on the 22nd, followed by “OK” a deposit and withdrawal bankbook product which gives interest up to 5% per annum. “One Million Bankbook II” was released.
Since the 15th, Daishin Savings Bank has been offering an interest rate of 3.9% for an amount of KRW 200 million or less in the “Deudigo Deposit and Withdrawal Account”. Accuon Savings Bank’s “Money Split” and Hana Savings Bank’s “Hi Hana Common Deposit” offer interest rates of 4% and 3.8% respectively. Since Internet-only banks have recently raised interest rates for parking accounts, it is interpreted that savings banks are also competing.
Earlier this month, Toss Bank, an Internet-only bank, raised the top interest rate on its parking account, ‘Toss Bank Account’, to 4% per annum. Toss Bank charges the same 2.3% pa up to 50 million won, but provides 4% pa for amounts over 50 million won. On the 12th, K-Bank also raised the interest rate of “Plus Box”, a parking account, from 2.7% to 3% per annum.
However, this interest rate does not apply to all deposit amounts. In the case of Toss Bank, if you put 100 million won into a bank account, an annual interest rate of 2.3% is charged up to 50 million won, and an annual interest rate of 4% is applied to the remaining 50 million of won . If you have deposited 200 million won, the same 2.3% annual rate is applied up to 50 million won, and a 4% annual interest rate is applied to the remaining 150 million won.
OK Savings Bank’s “OK X Million Account II” provides a maximum annual interest rate of 5% up to 5 million won, and charges a 4% annual interest rate from over 5 million to 50 million won. Daishin Savings Bank offers an interest rate of 3.9% for amounts below 200 million won and 0.1% for amounts above 200 million won.
On the other hand, Accuon Savings Bank’s “Money Split”, Hana Savings Bank’s “Hi Hana Ordinary Deposit”, and K-Bank’s “Plus Box” offer the same interest rate up to the maximum subscription amount.
For now, the competition to raise interest rates for parking bills should continue. A savings bank official said: “Parking passes are sensitive to an interest rate hike of 0.1% because deposits and withdrawals are free.” Therefore, in order to attract short-term funds, Internet-only banks are raising interest rates, and savings banks are also raising interest rates, so interest rate competition is heating up. It must be,” he explained.
Commercial banks are expected not to respond to competition to raise interest rates for parking accounts. This is because, in the case of commercial banks, the parking passbook is not a concentrated product.
A commercial bank official said: “In the case of commercial banks, we focus on money market funds (MMF), term deposits and bank bonds rather than parking accounts because commercial banks raise funds primarily for bonds. bank or term deposits”. Since we are maintaining the , we will accept temporary withdrawal of funds due to parked passbooks, etc.”
