Hana Savings Bank has launched a rolling time deposit product that periodically resets deposit rates in line with market interest rate trends.
The bank said Wednesday it has introduced a variable-rate time deposit that applies floating rates based on each rollover cycle. The product carries a 36-month subscription period, with deposit rates reset according to the cycle chosen by the customer.
Customers can select a rate rollover cycle of either three months or six months at the time of subscription. As of Wednesday, the applied rate is 2.7 percent annually for the three-month rollover and 2.8 percent annually for the six-month rollover. Thereafter, the rate posted at the start of each new rollover cycle will apply.
The product is designed to ease the burden of long-term deposits during periods of uncertain interest rate direction. While conventional time deposits typically lock in the rate at the time of subscription until maturity, rolling deposits adjust rates at set intervals, allowing them to reflect changes in market rates.
The product also offers greater flexibility in fund use. Customers can make up to four partial withdrawals, including the withdrawal at maturity, allowing them to take out a portion of their funds when needed. If the deposit is terminated early after a rollover cycle has passed, the contracted rate applies to the completed rollover periods, reducing interest losses from early termination.
Customers can also choose how they receive interest based on their financial plans. Options include monthly interest payments, payments at each three-month or six-month rollover cycle, or a lump-sum payment at maturity.
The product is available to individuals, sole proprietors, and corporations. Subscription and details can be accessed through Hana Savings Bank's website, mobile application, and branch offices. Subscription is also supported through Hana Bank's mobile app, "Hana One Q."
"We designed this product for customers who want to manage their funds more flexibly during periods of rate volatility," a Hana Savings Bank official said. "Its strength lies in allowing customers to check rate benefits at relatively short intervals while also being able to access portions of their funds when needed."
