High interest rates are said to be 'fishing deposits'... Wider difference in loan-to-deposit interest rates

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Many point out that while banks raise interest rates on loans, increasing interest rates on deposits and savings accounts is only condescending. However, looking at the products that raised interest rates, most of them were so-called 'fishing deposits', such as limiting the number of subscribers or the amount of payment.

This is reporter Jeon Yeon-nam.

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This is an advertisement for savings accounts of an internet savings bank.

The interest rate is 7% per annum, but if you look at it, there is no real value.

Only 700 people sign up on a first-come, first-served basis every day.

The total interest you can receive through this is 27,000 won.

Large banks also advertise that they have recently raised some deposit rates up to 0.4%, but they are limiting the monthly subscription amount.

If you invest 100,000 won a month for a year, you will receive an additional 2,200 won in interest.

Fortunately, only some deposits have raised interest like this, and most deposits are still in the 1% range and savings accounts are still around 2%.

The reason why banks are rushing to launch such fishing deposit products is interpreted to be to avoid criticism that the deposit interest rate remains the same while the loan interest rate is raised.

[Jo Yeon-haeng/Chairman of the Financial Consumer Federation: To attract consumers with only trick products, not giving benefits, can be seen as a tyranny of a business act that mocks consumers.]

On the other hand, interest rates on loans are rising steeply.

Last month, the average interest rate on home mortgage loans exceeded 3%, the highest level in 7 years and 7 months, and the interest rate on credit loans also exceeded 5%.

As a result, the difference between deposit and loan interest rates widened to the widest in two years and four months.

[Kim Sang-bong/Professor of Economics, Hansung University: In a situation where the capital raising interest rate is rising, the loan interest rate has no choice but to rise.

Therefore, banks should act so that deposit interest rates can react a little faster.]

Both the ruling and opposition parties before the election announced that they would fix this behavior of banks, but it is unclear whether this will be realized.