NH Nonghyup Bank Launches Index-Linked Deposit Offering Up to 9.45% Annual Return

NH Nonghyup Bank has introduced a principal-protected index-linked deposit (ELD) product that offers an expected annual return of up to 9.45%, based on fluctuations in the KOSPI 200 index. The product is structured with a one-year maturity and comes in three types: Stability I, Yield I, and Yield II.

The bank announced on July 1 that it is launching the 'Index-Linked Deposit (ELD) 26-5', which guarantees the principal and a minimum agreed interest if held to maturity.

This product is based on the KOSPI 200 index, with returns determined by index fluctuations. It includes three types: Stability I, Yield I, and Yield II.

The Stability I type offers returns ranging from a minimum of 3.20% to a maximum of 3.50% annually (3.00% to 3.30% for corporations). The Yield I type offers returns from 2.95% to 7.50% annually (2.80% to 7.35% for corporations), while the Yield II type offers a maximum annual return of 9.45% (9.30% for corporations).

However, the yield products are subject to a 'knockout condition' if the KOSPI 200 index exceeds a predetermined increase rate before the maturity index is determined. For Yield I, if the index rises more than 35%, and for Yield II, if it rises more than 45%, the maturity yield will be fixed at the minimum rate.

The subscription period for this product runs from July 1 to July 8. It can be purchased at all branches nationwide, as well as through NH All-One Bank and NH Smart Banking. The Stability I type has a sales limit of 80 billion won for individuals and 20 billion won for corporations, and sales may close early if the limit is reached.

An NH Nonghyup Bank official stated, "This product is protected under the Depositor Protection Act. However, early withdrawal may incur penalties based on the duration, which could lead to a loss of principal, so a thorough understanding of the product is necessary before subscribing."