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Fixed deposits at banks rise at fastest pace in 8 yrs

All Headlines 11:38 January 13, 2019

SEOUL, Jan. 13 (Yonhap) -- The combined amount of fixed deposits at South Korean banks increased at the sharpest clip in eight years in 2018 on a rate hike trend, central bank data showed Sunday.

According to the data compiled by the Bank of Korea (BOK), the combined amount of fixed deposits in the country came to 668.4 trillion won (US$598.9 billion) as of end-2018, up 72.2 trillion won from the previous year.

It marked the largest on-year gain since 2010, when the bank raised 95.7 trillion won in fixed deposits.

Fixed deposits refer to a financial instrument where investors deposit money over a certain period in return for a relatively higher interest rate.

Market watchers said the increase came as people expected higher interest before and after a rate hike by the BOK last year.

The central bank raised the policy rate by a quarter percentage point to a more than three-year high of 1.75 percent in November last year.

Local banks provided an average interest rate of 2.15 percent for one-year fixed deposits as of November last year, marking the highest in nearly four years.

Fixed deposits at banks rise at fastest pace in 8 yrs - 1

brk@yna.co.kr
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