Jo So-hyeon (Sophomore, English) saves up to 100,000 won each month for one year in a Women's Premium Installment Savings Account at the Bank of Busan. She said, "I wanted to accustom myself to saving money. Even though it is hard not to buy what I want, it is not so difficult since I'm gradually saving up to take a backpacking trip to Mongolia and India and to buy a DSLR camera."
As the case of Jo shows, a deposit account is no longer the exclusive possession of employees in the work force. There is a feeling of insecurity because of the bad economy. So young people who are saving by working at a part-time job or not spending pocket money are increasing lately. Moreover, among those saving for their retirement on an installment deposit account the rate is 11.9%, of which percentage 9.8% are in their twenties, 13.4% in their thirties, 12.3% in their forties. This is not a low rate.
Park Mi-seon, an employee of Bank of Busan-Kimhae, said, "Some students come to inquire about installment savings account and sign up for it. University student customers' rate is 20~30%. And because university students don't have a steady income, they prefer a flexible installment savings from which they can withdraw money."
Recently, many banks offer similar special premium accounts with high interest rates and reasonable fees to women. These offer special services associated with the well-being and health issues that are of concern to women. And if a customer wants to request it, it provides free SMS service for a lot of personal anniversaries.
Special Women's Installment Savings Account is offered by △Bank of Kukmin (KB) (annual interest rate is 2.9%) △Bank of Hana (2.4%) △Bank of Industry (3.1%). If women put this installment savings into good use, they will benefit.
A student looking farther into the future signed up for the Comprehensive Subscription Housing Savings Account. Jo A-ra (Sophomore, Tourism Management) makes payments to the Comprehensive Subscription Housing Savings Account in Bank of Woori. If the customer makes the agreed upon payments for two years without arrearage, then he has first priority in subscribing to housing. She said, "In order to increase my chances for a condominium, I make monthly payments into my account from my earnings from part-time jobs. The expiration of Subscription Savings will take a long time, but I take great satisfaction in making payments to fulfill my future plans.
Through the Comprehensive Subscription Housing Savings Account, it is possible to subscribe to all houses. It is also renowned for its high interest rate Bank of Woori, Nonghyup, Shinhan, Industry, Hana offer the Comprehensive Subscription Housing Savings Account at the highest rate (4.5%, an annual interest) as compared with other installment savings. Because of the high interest rate, many people sign up. Moreover, it is possible to deposit and withdraw 20,000~500,000 won each month.
For students who want high interest despite the risk of instability, Park Mi-seon recommends the Accumulative Fund and Savings Insurance.
In an Accumulative Fund a sum of money is invested over a period of time like installment savings. Compared to other financial products that require lots of money at a time, accumulative fund makes it possible to deposit small sum of money. So it has the advantage of low risk. But if stock prices decrease at the expired period, the earnings rate may be low, or in the worst case, there may be risk of loss of the principal sum.
Savings Insurance is good for marriage capital and housing capital funds, and also for the retirement fund. At its maturity, the policy holder receives a larger sum than the initial amount he has put in.
For university students who prefer stability with a low interest rate, Park Mi-seon recommends installment savings and free accumulative installment savings.
Installment savings is a representative account that can generate a sum of money within one to two years.
Free accumulative installment savings is similar to installment savings. Payments can be freely deposited regardless of the sum or set date.
Regardless of the size of the deposit, the long-term installment savings account has high interest rates. It also has great features and benefits to fit your conditions.
Like a general commercial bank, a mutual savings bank in the second financial sector, able to guarantee 50 million won in principal and interest, is safe to open accounts.
Funds do not allow long-term payments or guarantee the principal sum. In contrast, Installment Savings Accounts guarantee the principal and installment payments even if the account is cancelled midway.
It is important to know the interest rate of each bank as it varies from bank to bank.
Reference : The interest comparison site : http://bank.emoney.co.kr/bk/
August 20, 2009
By Junior reporter Park Yi-seul |
