As deposit interest rates rise, high-interest parking accounts and savings products are being launched one after another

After the Bank of Korea raised its benchmark interest rate, commercial banks and savings banks have been successively increasing deposit and savings rates. The highest interest rates on oneyear term deposits at the five major commercial banks are in the 3.4% to 3.6% range, about 0.5 percentage points higher than at the end of last June. As internetonly banks, credit cooperatives, and savings banks have also joined the competition, oneyear term deposits with rates in the 4% range and parking accounts with rates in the 7% to 8% range have appeared. Some banks have also introduced shortterm installment savings products offering up to 7.5% to 12.0% per year. During periods of rising interest rates, demand for products with shorter maturities increases, and there is also a trend of funds moving into shortterm products such as demand deposit accounts and onemonth installment savings. According to the article, the balances of demand deposits and term deposits at the five major banks have shown an increasing trend since the start of this month.