K bank's flexible time deposit tops W1.1tr within a month of launch

K bank's time deposit product, which lets customers choose when to receive interest and allows additional deposits and partial withdrawals after enrollment, surpassed 1.1 trillion won ($820 million) in new deposits within a month of its launch.

K bank said Friday that its "My Way Interest Time Deposit," launched Sept. 29, had exceeded 1.1 trillion won in new deposits as of the end of October.

The product's defining feature is that customers can choose at enrollment whether to receive interest immediately or at maturity. Interest paid upfront can be used for living expenses or other investments.

Customers may also make up to two additional deposits and two partial withdrawals. Additional deposits are accepted through the day before the maturity date, with a minimum of 1 million won per deposit and a ceiling of twice the original enrollment amount. Interest on additional deposits is paid according to the method the customer selected at enrollment, either immediately or at maturity.

Partial withdrawals are likewise available through the day before the maturity date. Customers who opted to receive interest at maturity may withdraw funds as long as at least 1 million won remains in the account. Those who received interest upfront must keep in the account whichever is greater — the total prepaid interest or 1 million won. An early-termination rate applies to any withdrawn amount.

The feature gives customers more options when they need quick cash, letting them withdraw only what they need rather than closing the entire deposit.

Customers who choose to receive interest immediately can also select whether to receive it before or after tax. Those who take the full pre-tax amount will have taxes deducted from the principal at maturity, while those who receive the post-tax amount get their full principal back at maturity. The total received by maturity is the same under both methods.

K bank raised interest rates for the 1-, 3- and 6-month maturities by 0.10 percentage points each, effective Friday. The updated rates are 3.10 percent per annum for the 1-month term, 3.55 percent for 3 months and 3.65 percent for 6 months. The 12-month term carries an annual rate of 3.81 percent.

The minimum enrollment amount is 1 million won, with no upper deposit limit. K bank also offers a rate-guarantee service: if the interest rate rises within 14 days of enrollment, including the enrollment date, the higher rate automatically applies.

"It appears that the strong response reflects customer demand for both stable interest rate benefits and flexible fund management," a K bank official said.