The balances of time deposits at the five major banks increased by over 24 trillion won in October. With rising market interest rates boosting deposit rates, special promotions offering up to 4% annual interest also reached their sales limits. As funds waiting for stock purchases decreased compared to the end of the first half of the year, the growing interest in bank deposits has led the financial sector to interpret this as a sign of a 'reverse money move.'
According to the financial sector on November 3, the balance of time deposits at the five major banks reached 1,030.488 trillion won at the end of October, an increase of 24.4009 trillion won from the end of September. This marks six consecutive months of growth since May and an increase of 91.2017 trillion won compared to the end of last year.
As of October 30, the amount of investor deposits, which are funds waiting for stock purchases, stood at 90.2351 trillion won, down 31.3988 trillion won (25.8%) from 121.6339 trillion won at the end of the first half. However, due to the differing comparison periods for deposit balances and investor deposits, it is difficult to conclude that money has moved from the stock market to banks solely based on these figures. Nonetheless, analysts suggest that rising deposit rates due to increasing market interest rates and heightened stock market volatility have made time deposits, which offer fixed interest, more attractive.
Demand has also surged for special promotional products offered by commercial banks. Shinhan Bank's 'Super SOL Welcome Time Deposit,' launched on October 6, reached its sales limit of 500 billion won by November 2. The base interest rates are 3.3% for a six-month term and 3.6% for a 12-month term. Customers who meet the conditions of first logging into the app and transferring their salary can receive an additional 0.2 percentage points, bringing the maximum annual interest rate to 4% for the 12-month term. With a subscription limit of 20 million won per person, at least 25,000 individuals have signed up.
KB Kookmin Bank's 'KB Golden Life Pension Deposit' sold out its initial offering of 500 billion won within a month of its launch in July. The second batch, which began selling on September 29, was also fully subscribed by October 20. NH Nonghyup Bank's 'NH All-One Bank 10th Anniversary Deposit' saw its first offering of 500 billion won sell out in just a week, with the second batch selling out in four days. Nonghyup Bank is preparing for a third offering. Woori Bank's 'Our Wish Time Deposit' reached its limit of 1 trillion won within eight days of its August launch, with additional amounts also sold out that month.
Banks are also leveraging these special promotions to attract new customers. Shinhan Bank's strategy of offering preferential conditions for first-time app logins and salary transfers is seen as a way to encourage customers to use the app and switch their primary accounts.
* This article has been translated by AI.
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