The Fed’s continuous rate hike is also raising the benchmark interest rate sharply in Korea.Currently, the benchmark interest rate in Korea has been raised to 3.0%, and many people are flocking to deposits and installment savings products as they are expected to increase further.
As many people gather for safe assets such as installment savings and bonds, banks are also increasingly interested in parking accounts that can collect interest without conditions during the deposit period as they launch various high-interest products to attract more customers.
Today, as interest in parking accounts increases as interest rates rise, we will take a short time to learn about the concept of parking accounts, parking bank accounts by bank, and how to find safe parking accounts.
What is a parking account?
Parking bankbook is a compound word of parking and bankbook, which means parking, and refers to a bankbook that deposits funds for a short period of time as if parking.Unlike ordinary deposits and installment savings products, deposits and withdrawals are free, and interest can be collected unconditionally during the deposit period.
Parking accounts are often used to store extra funds for a short period of time, which are burdensome to be tied up in deposits and installment savings for a long time, as you can collect designated interest even if you deposit only one day.
Internet bank representative of parking
Representative primary financial banks that handle parking accounts include Kakao Bank, K-Bank, and Toss Bank.They are representatives of Internet banks and have the advantage of being more stable although interest rates are lower than those of the secondary financial sector.
Currently, K-Bank’s parking account plus box, which has the highest interest rate, boasts the highest interest rate among open banking at 2.7%.Kakao Bank also operates a parking account safe box at a 2.6% interest rate, while Toss Bank operates a 2.3% interest rate Toss Bank parking account.
Earlier this year, Toss Bank was in the spotlight by introducing a parking account with a 2% interest rate, but now it is lagging behind Kakao Bank and K-Bank.Kakao Bank and K-Bank entered the price competition by raising interest rates of 0.4% during October alone, and Toss Banking is also raising interest rates from 2.0% to 2.3%, eliminating the limit of 100 million won.
high-interest parking accounts of the second-tier financial sector
The charm of parking accounts in the 2nd financial sector is high interest rates.If most parking accounts in the primary financial sector are below 3%, parking accounts in the secondary financial sector boast high interest rates of up to 4.8%.
Ecuon Savings Bank, which boasts the highest interest rate, boasts a whopping 4.0 percent interest rate.Following this, Welcome Savings Bank’s Office Worker Love Ordinary Deposit, OK Second Bank’s OK Second Bank, and SBI Savings Bank’s Cider Bank are parking accounts with at least 3.0% interest rates.
In addition to the savings bank I informed you about, there are various parking account products such as Daol Fi savings deposit from Daol Savings Bank, Haihana ordinary deposit from Hana Savings Bank, and Pepper Parking Bank’s Pepper Parking Bank.
How to use a parking account more safely
In any case, parking accounts in the secondary financial sector tend to have anxiety factors compared to parking accounts in the primary financial sector.For example, when I deposit money, the bank goes bankrupt and I can’t get it back.In preparation for these anxiety factors, the Depositor Protection Act should be utilized well.
The Depositor Protection Act is a system that protects deposits of up to 50 million won per financial company, including principal and interest, when financial firms go bankrupt or fail to return money.
In other words, it is recommended to deposit only the amount protected by the Depositor Protection Act rather than depositing a large amount at once due to high interest rates.Also, even with the Depositor Protection Act, it takes a considerable amount of time to recover the money if the bank goes bankrupt.
Before signing up for a parking account, it is also recommended to check whether it is safe by checking the equity capital ratio of financial companies or the fixed loan ratio.The information can be found through the Financial Statistics Information System and you can check the 88 Club Rules.
88 Club refers to savings banks with a capital adequacy ratio of more than 8% and a loan ratio of less than 8% based on the Bank for International Settlements, and is used as an indicator of the soundness of savings banks.
BIS capital adequacy ratio and fixed-income ratio verification method
BIS capital adequacy ratio verification method
In the Financial Statistics Information System, you can check the financial information and management indicators of savings banks by clicking on non-bank savings banks.The BIS-based equity capital ratio is included in the capital adequacy classification of major management indicators.
After that, I can check the period and bank I want to inquire, check the BIS-based equity capital ratio of G code among the statistical items, and click the inquiry to check the BIS-based equity capital ratio for each bank.
As of June 2022, SBI Savings Bank showed the highest equity capital ratio, followed by Welcome Savings Bank, OK Savings Bank, and Acuon Savings Bank.The higher the equity capital ratio, the healthier the finances are, and it is good to check whether the figure is deteriorating rapidly compared to the previous quarter.
confirmation of fixed dissociation ratio
You can check the credit soundness of major management indicators of savings banks for fixed management indicators of savings banks.
Like the equity capital ratio, you can set the inquiry period with the bank you want to check, fix the A4 code, check the mystery ratio, and press the inquiry.
The lower the ratio of fixed understanding to the opposite of the equity capital ratio, the healthier the finances are.As of June 2022, SBI Savings Bank was the lowest at 2.26%, followed by Acuon Savings Bank, Welcome Savings Bank, and OK Savings Bank.
All four banks were fixed, so the credit ratio was within 8%, but in the case of OK Savings Bank, it was also confirmed that the credit ratio was rapidly deteriorating because it was fixed.
As there have been a number of savings banks going bankrupt in the past, please make the most of the BIS equity capital ratio, fixed interest ratio, and depositor protection law.