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 commercial banks’ deposit interest rates rose, the attractiveness of parking bankbooks seemed to diminish.
▷Related article: Leaving the ‘parking account’… In-bank and savings bank competition heats up (June 30)
Interest is applied even if you leave the parking account for one day, and the increased interest rate is automatically applied to the deposit without separate cancellation or re-registration. Therefore, it has the advantage of being able to receive contracted 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 want to receive even a penny more in interest. Like existing deposits, parking accounts are protected up to 50 million won under the Depositor Protection Act.
According to the financial sector on the 27th, OK Savings Bank raised the maximum interest rate of the parking account ‘OK Second Bankbook’ and ‘OK Bankbook’ to 4% per year on the 22nd, followed by ‘OK Savings Bank’, a deposit and withdrawal bankbook product that gives interest up to 5% per year. ‘One Million Bankbook II’ was released.
Since the 15th, Daishin Savings Bank has been offering a 3.9% interest rate for the 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. As internet-only banks 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 highest interest rate for its parking account, ‘Toss Bank Account’, to 4% per year. Toss Bank applies the same 2.3% per annum for up to 50 million won, but provides 4% per annum 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 year.
However, this interest rate does not apply to all deposit amounts. In the case of Toss Bank, if you put 100 million won in a bank account, an annual interest rate of 2.3% is applied for up to 50 million won, and an annual interest rate of 4% is applied to the remaining 50 million won. If you deposited 200 million won, the same annual rate of 2.3% 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% for up to 5 million won, and applies an annual interest rate of 4% for over 5 million won to 50 million won. Daishin Savings Bank offers an interest rate of 3.9% for amounts under 200 million won and 0.1% for amounts over 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 the time being, the competition to raise interest rates for parking accounts is expected to continue. A savings bank official said, “Parking passbooks are sensitive to a 0.1% interest rate hike because deposits and withdrawals are free.” Therefore, in order to attract short-term funds, interest rate competition is overheating when Internet-only banks raise interest rates, and savings banks also raise interest rates. It has to be,” he explained.
It is expected that commercial banks will not respond to the competition to raise interest rates for parking accounts. In the case of commercial banks, the parking account is not a concentrated product.
An official from a commercial bank said, “In the case of commercial banks, we focus on money market funds (MMF), term deposits, and bank debentures rather than parking accounts because commercial banks raise funds mainly for bank debentures or term deposits.” Since we are maintaining the , we will accept the temporary withdrawal of funds due to parking bankbooks, etc.”
