Major Banks Raise Fixed Deposit Rates, KB Kookmin Increases by Up to 0.6%

Five major banks in South Korea, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, have raised their fixed deposit rates this month. Following the Bank of Korea's increase in the benchmark interest rate, market interest rates have also risen, prompting banks to adjust their deposit rates upward.

According to the financial sector on September 14, KB Kookmin Bank has increased the interest rates on its flagship deposit product, the 'KB Star Fixed Deposit,' by 0.15 to 0.6 percentage points, effective today. Specifically, the interest rate for deposits with a maturity of one year to less than two years has risen from 3.2% to 3.4%, an increase of 0.2 percentage points.

For deposits with a maturity of six months to less than one year, the rate has been raised from 3% to 3.15%, a 0.15 percentage point increase. The rate for deposits with a maturity of two to less than four years has increased from 2.4% to 3%, a rise of 0.6 percentage points, while the three-year maturity rate has gone up from 2.4% to 2.6%, an increase of 0.2 percentage points. A bank official stated, "We decided to raise deposit rates in response to the recent upward trend in market interest rates following the Bank of Korea's benchmark rate hike."

With this adjustment, all five major banks have raised their fixed deposit rates this month. Earlier, Shinhan Bank increased the one-year maturity rate of its flagship product, 'Soleunhan Fixed Deposit,' from 3.2% to 3.4%, a 0.2 percentage point increase on September 9.

Hana Bank also raised the one-year maturity rate of its main fixed deposit product, 'Hana Fixed Deposit,' from 3.2% to 3.3%, an increase of 0.1 percentage points. Woori Bank similarly raised the rate of its flagship product, 'WON Plus Deposit,' from 3.2% to 3.4%, a 0.2 percentage point increase.

NH Nonghyup Bank increased the rates of its 'NH All-in-One e-Deposit' starting September 11, with increases ranging from 0.2 to 0.3 percentage points depending on the subscription period. The rates for deposits with a maturity of six months to less than 12 months and 12 months to less than 24 months have each been raised by 0.2 percentage points, while the rate for deposits with a maturity of 24 months to less than 36 months has been increased by 0.3 percentage points.