Taiwan banks offer savings rates higher than fixed deposits

For savers who want higher returns without locking away their money, Taiwan’s digital banking accounts are offering an increasingly attractive alternative to fixed deposits.

O-Bank has sharply increased the preferential balance available to existing customers. From Aug. 10, qualifying customers can earn 2.1% annual interest on up to NT$500,000, compared with the previous limit of NT$200,000. Customers must transfer at least NT$50,000 in a single payment from another bank. The preferential rate then applies for six consecutive months without additional tasks.

Balances between NT$500,000 and NT$1 million earn 1.5%. A customer holding NT$500,000 for six months would receive about NT$5,206 in interest, while a NT$1 million balance would generate about NT$8,925 over the same period.

Far Eastern Bank’s Bankee community bank is promoting its “Flexible Savings” plan to customers unsettled by recent stock-market volatility but unwilling to accept low demand-deposit returns or tie up all their funds. Eligible new money placed in a one-year fixed deposit at 1.78% gives the customer access to a demand-deposit allowance equal to half the fixed-deposit principal, earning 2.435%. Deposits range from NT$10,000 to NT$3 million per account, with no limit on the number of accounts.

LINE Bank’s Pocket Account offers 1.5% on up to NT$9 million without conditions until the end of the year. First Bank’s iLEO account offers 2% on up to NT$120,000 for both new and existing customers, with no additional tasks required.