SEOUL, KOREA - The balance of periodical deposits with commercial banks has increased rapidly. This is attributed to the fact that the real estate and stock market have been flat for years, making periodical deposits more attractive relative to other investment vehicles. Periodical deposit accounts typically save a predetermined amount of money every month.
According to the Bank of Korea on May 21, the balance of periodical deposits with 17 commercial banks as of the end of March was 33,809.1 billion won, the highest ever since the central bank began compiling data in January 1970. The periodical deposit balance has rise 1,641.1 billion won for this year alone.
Periodical deposits have been popular among ordinary savers until the late 1990s. By 2007, the balance in these accounts has shrunk to a level of 13.2 trillion won. Since the 2008 global credit crisis, the balance has turned to a rising trend, gaining 7.5 trillion won last year alone (a 30.6% rise from the previous year). In contrast, the time deposit balance has declined by 2.3 trillion won for the three months until March this year.
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