Some local banks have raised rates on new deposits, but the increase seems to be negligible compared to hikes in their lending rates, industry data said Thursday.
NH Nonghyup Bank, one of the largest lenders in South Korea, raised its rates by up to 0.25 percentage point on new two-year time deposits for individual and corporate customers. This means the rate paid by the bank on a new two-year time deposit stands at 1.45 percent for individuals and 1.40 percent for corporate customers.
A NH Nonghyup Bank official said the bank raised rates on new deposits to boost competitiveness.
KEB Hana Bank, another major local bank, said it plans to raise rates on new one-year time deposits next month by up to 0.2 percentage point to 2.3 percent.
Meanwhile, Shinhan Bank and Woori Bank said they had no immediate plans to raise rates on fresh deposits.
Industry data showed that the average interest rate on mortgages extended by five local banks sat in the 3-percent range as of the end of last month. (Yonhap)
