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All about South Korea => Life in Korea => Topic started by: kayakee on June 09, 2020, 05:15:22 pm

Title: Interest rates all time low! So sad
Post by: kayakee on June 09, 2020, 05:15:22 pm
Last year I put some money away in my bank for 1 year at 2.2% and got a good return.
Today I just put it back in and added more money but found out it was only 1.1% ...a 50% drop from what I had.

So even though I put in more money this time, I will make less money for it :(

My bank is NH.  Anybody else have get a really low rate? is 1.1% actually pretty good...I heard it was below 1% so
the bank teller told me I got a good deal at 1.1%

Title: Re: Interest rates all time low! So sad
Post by: MayorHaggar on June 09, 2020, 07:03:25 pm
Makes it way easier to buy a house. Oh wait you live in Korea.
Title: Re: Interest rates all time low! So sad
Post by: thunderlips on June 09, 2020, 09:26:24 pm
My USA bank just lowered rates too. I was getting 2.1% now it’s down to 0.99%. F’ing japan! 
Title: Re: Interest rates all time low! So sad
Post by: gogators! on June 10, 2020, 06:33:39 am
It's a new normal indeed regarding interest rates when someone describes 2.2% as a good return.
Title: Re: Interest rates all time low! So sad
Post by: pkjh on June 10, 2020, 07:36:48 am
Used to remember the 5% interest days for just a savings account. And my parents say it used be like 15% way back. Just imagine the interest you'd be paying on a mortgage if rates were that high...
Title: Re: Interest rates all time low! So sad
Post by: fka on June 10, 2020, 11:00:37 am
I don't know about the situation in Korea, but credit unions in the US and UK generally pay more generously than banks. They use the term dividends as opposed to interest rate, so I'm being careful to not say that they pay a higher interest rate. The effect is the same though. I was getting 5% from a credit union during the 2008-09 recession, when banks were paying less than 1%. They tend to be a lot more ethical than the big banks, too.

In fact I think there was a discussion about credit unions in Korea on here a while ago but searching for it brings up the 504 Gateway Timeout message right now.
Title: Re: Interest rates all time low! So sad
Post by: JNM on June 12, 2020, 04:28:07 pm
I don't know about the situation in Korea, but credit unions in the US and UK generally pay more generously than banks. They use the term dividends as opposed to interest rate, so I'm being careful to not say that they pay a higher interest rate. The effect is the same though. I was getting 5% from a credit union during the 2008-09 recession, when banks were paying less than 1%. They tend to be a lot more ethical than the big banks, too.

In fact I think there was a discussion about credit unions in Korea on here a while ago but searching for it brings up the 504 Gateway Timeout message right now.
Credit Unions are co-operatives; the customers are the shareholders, so that “dividend” includes interest and operating profit. They usually try to keep profits low (unlike banks with shareholders to feed.)