As interest rates rise, commercial bank deposits near 4% annually, savings banks offer 4-5%

As interest rates climb, South Korean commercial banks are seeing their deposit rates surge to nearly 4% per year. This upward trend is making savings more attractive for consumers looking to maximize returns on their money.

In response to the tightening monetary environment, some savings banks have begun offering deposit products with annual interest rates hovering around 4%. These institutions are also occasionally rolling out special promotional rates, sometimes reaching as high as 5%, to attract new customers and retain existing ones.

Data from the Banks Association of Korea indicates that as of the current date, the highest annual interest rate available for a 12-month fixed deposit among the top-tier financial institutions is 3.82%. This rate is offered by Gwangju Bank's Good Start Deposit. SC First Bank's e-Green Save Deposit offers a slightly lower rate of 3.75%. These figures reflect the competitive landscape as banks vie for deposits in a higher interest rate environment.

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The highest annual interest rate for a 12-month fixed deposit product among the top-tier banks is 2.4~3.82%.