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Yesterday (18th) people gathered in front of a bank in Seoul that gives 7% interest on savings accounts for just one day.
As loan interest rates rise, concerns about debt are increasing, but more and more people are worried about how to manage even a small amount of money.
Reporter Kim Jung-woo reports.
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At 8 in the morning, there was an hour left before the bank door opened, but there was already a long line.
The news spreads that they will sell savings accounts with an annual interest rate of 7% for just one day.
[Credit union customer: (When did the line start?) It starts at 7 and 9, but if you come later, you won't be able to stand in line and you will have to wait for an hour or two.
(In the past) it was less than 1%, but 7% is the highest interest rate in modern terms.] The interest on
savings bank deposits has also doubled on average compared to the beginning of the year, and today up to 6% products are available.
For the first time in 10 years, people who have extra money at high interest rates are experiencing growing concerns.
First of all, if you currently have cash, it is better to leave it in a so-called parking passbook, which you can find at any time at a slightly higher interest rate.
This is because, as the base rate rises once more next month, deposit rates are expected to rise to the low 5% range for commercial banks and the mid-6% range for savings banks.
If you have already signed up for a deposit that is two or three months old, it is better to cancel it.
On the other hand, since most of the savings accounts pay little interest when canceled mid-term, it may be better to maintain them.
If it is difficult to cancel, such as subscription savings, you need to find out about a deposit-backed loan.
You can borrow money using your deposit as collateral, and the interest rate is in the low 3% range, so if you reinvest it in a savings bank that gives an interest rate of 6% at the end, you can get an additional 2% point or more in interest.