From 3.2% to 3.6%: How high will bank deposit rates go?

Major commercial banks are raising fixed-deposit rates in quick succession, intensifying competition for deposits. The combined fixed-deposit balance at the five largest banks has climbed above 1,000 trillion won.

Woori Bank raised the one-year rate on its flagship "WON Plus" fixed-deposit product by 0.10 percentage point to 3.60 percent annually, effective Wednesday. The bank had already lifted the rate on the same product by 0.20 percentage point to 3.40 percent on Sept. 10, then raised it again to 3.50 percent on Sept. 18 — making Wednesday's adjustment the third increase in roughly 20 days.

Hana Bank raised the one-year rate on its "Hana Fixed Deposit" by 0.20 percentage point to 3.60 percent annually on Oct. 1, following two earlier increases of 0.10 percentage point each on Sept. 10 and Sept. 22.

Shinhan Bank also raised the one-year rate on its "SOL Convenient Fixed Deposit" by 0.10 percentage point to 3.50 percent annually on Sept. 30, less than a month after lifting it by 0.10 percentage point to 3.40 percent on Sept. 9.

KB Kookmin Bank raised rates on its "KB Star Fixed Deposit" by up to 0.60 percentage point across maturities on Sept. 14, then followed up on Sept. 21 with an additional increase on the one-year-to-under-two-year tier, pushing that rate from 3.40 percent to 3.50 percent annually.

NH NongHyup Bank joined the competition as well, raising rates on its "NH All One e-Deposit" on Sept. 11 and then lifting basic rates on deposits and installment savings products by up to 0.25 percentage point on Sept. 23.

Among internet-only banks, K bank launched a new fixed-deposit product on Sept. 29 offering an annual rate of 3.71 percent for a one-year term.

Kakao Bank raised its one-year fixed-deposit rate to around 3.70 percent annually on Sept. 23, while Toss Bank offers 3.60 percent annually on its one-year "Receive Interest First" fixed-deposit product.

Fixed-deposit balances across the banking sector have continued to grow.

The combined fixed-deposit balance at the five major banks — KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH NongHyup Bank — stood at 1,006.09 trillion won ($751 billion) at the end of September, up 855.2 billion won from the end of the previous month. Balances have been rising since May and surpassed the 1,000 trillion won mark at the end of August.