[Sponsored Report] Shinhan product offers good compound interest
Compound interest savings products from banks are increasingly popular these days.
Shinhan Bank’s Monthly Compound Interest Installment savings product is a three-year plan fit for clients who are looking to make some lump-sum money at the end of the term.
This product has attracted 830,000 clients already as of April 7.
While most of savings and deposit accounts are created for one year, the Shinhan Monthly Compound Interest Installment Savings account is a mid-to-long-term product that will give customers noticeable results.
Even though the quarterly limit is 1 million won ($919), the account’s total savings up to now has reached 1.17 trillion won.
The account has taken the best of regular products to become one of the most favored items in our lineup for people planning on generating future lump-sump money. For example, if you plan to save 300,000 won every month, and if you use a product with 4.8 percent compound interest, three years later you will receive 837,244 won as interest.
But if you have an account that offers just basic interest, you will receive 799,200 won on the redemption date. A product that gets you compound interest increases the interest by 4.5 percent, a total of 38,044 won.
In addition, clients have to meet certain criteria for savings or deposit accounts to receive a preferred interest rate. However, the Shinhan Monthly Compound Interest Installment Savings account provides the highest interest rate to even Shinhan Bank first-time users.
The Shinhan Monthly Compound Interest Fixed Deposit account, introduced in May last year, is now one of the most popular deposit accounts in the Shinhan lineup because interest for compound rates are increasing.
You can deposit up to 30 million won in an account per person and each account term can last one, two or three years. If you meet the criteria for a monthly compound installment savings account, you can receive an additional 0.1 percent on your interest rate.
Clients over the age of 60 can receive even higher rates, and this is very popular as a method to effectively manage retirement funds.
Installment savings for companies with monthly compound interest is popular among company clients who need to manage the funds effectively.
One Shinhan Bank executive said: “Most of the clients using this product are office workers or those who just started working; young people.”
“In the future we plan to introduce more new products for clients who have chosen Shinhan Bank.”