# Financial Product Rate Comparison

> Compare deposit and loan rates across banks and calculate expected returns or payments.

## What is this tool?

The Financial Product Rate Comparison tool provides a comprehensive, real-time comparison of interest rates across Korean banking institutions using official data from the Financial Supervisory Service (FSS, 금융감독원). The FSS operates the Financial Products Comparison Portal (finlife.fss.or.kr) as part of its consumer protection mandate, requiring all Korean banks and financial institutions to disclose their deposit and loan product rates in a standardized format. This tool aggregates that data and presents it in a user-friendly interface with built-in calculation capabilities. You can compare five product categories: term deposits (정기예금), installment savings (적금), mortgage loans (주택담보대출), jeonse loans (전세자금대출), and personal/credit loans (개인신용대출). For deposit products, the tool calculates expected after-tax interest earnings; for loan products, it computes monthly repayment amounts and total interest costs. In Korea's competitive banking market where rate differences of 0.1-0.5% between institutions can translate to hundreds of thousands of won in annual interest, having a centralized comparison tool is invaluable for making informed financial decisions.

## How to use

Step 1: Select the main tab — Deposits & Savings or Loans — depending on whether you are looking to save money or borrow.

Step 2: Choose the specific product type. Under Deposits & Savings, select either Term Deposit (lump-sum deposit for a fixed period) or Savings (monthly installment deposits). Under Loans, select Mortgage (housing-backed loans), Jeonse (deposit-based rental loans), or Personal Loan (unsecured credit loans).

Step 3: Enter the financial details. For deposits, input the principal amount (lump sum for term deposits or monthly amount for savings) and the desired term in months (common terms: 6, 12, 24, 36 months). For loans, enter the loan amount and loan term.

Step 4: Browse the comparison table showing all available products from Korean banks. Each row displays the bank name, product name, base rate (기본금리), and maximum rate (최고금리, including all preferential conditions). For deposits, the calculated after-tax interest is shown; for loans, the estimated monthly payment and total interest are displayed.

Step 5: Sort the results by interest rate (highest for deposits, lowest for loans) or alphabetically by bank name. The tool highlights the best-rate product at the top with a detailed calculation breakdown showing total deposited amount, gross interest, interest tax (15.4%), net after-tax interest, and total after-tax amount.

Step 6: Data is refreshed from the FSS every 24 hours. Check individual bank websites for the most current rates before making a final decision.

## Formula

Term Deposit Interest Calculation (Simple Interest):
Gross Interest = Principal × Annual Rate × (Term in Months / 12)
Example: 10,000,000 KRW at 3.5% for 12 months = 10,000,000 × 0.035 × 1 = 350,000 KRW

Installment Savings Interest Calculation:
Gross Interest = Monthly Deposit × Monthly Rate × n(n+1)/2
Where Monthly Rate = Annual Rate / 12, n = number of months
This formula accounts for the fact that each monthly deposit earns interest for a different duration.
Example: 500,000 KRW/month at 4% for 12 months = 500,000 × (0.04/12) × (12×13/2) = 130,000 KRW

Interest Tax (이자소득세):
Tax = Gross Interest × 15.4% (14% income tax + 1.4% local income tax)
After-tax Interest = Gross Interest × 84.6%

Tax-exempt Savings Options:
Certain products (tax-exempt savings for youth, farmers/fishermen) are taxed at 0% or reduced rate of 9.5% (agricultural cooperatives preferential tax).

Loan Monthly Payment (Equal Payment Amortization):
M = P × r(1+r)^n / ((1+r)^n - 1)
Where P = loan principal, r = monthly rate, n = total months
Total Interest = (M × n) - P

Note: Displayed rates are as reported by banks to the FSS. Actual rates may vary based on credit score, collateral, and whether preferential conditions are met.

## Useful tips

1. Understanding Base vs. Maximum Rates: The base rate (기본금리) is the rate you get with no special conditions. The maximum rate (최고금리) includes all preferential conditions such as payroll deposit, linked card usage, mobile banking registration, auto-transfer setup, and app-only sign-up bonuses. The gap between base and max rates can be 0.5-1.5 percentage points. Evaluate which conditions you can realistically meet before choosing a product based on the max rate.

2. Tax Efficiency: All deposit and savings interest in Korea is subject to 15.4% withholding tax. However, several tax-advantaged options exist: ISA (Individual Savings Account) provides tax-exempt interest up to 2 million KRW per year; tax-exempt savings accounts for the disabled, elderly (65+), or recipients of national merit; and preferential-tax savings at agricultural/fishery cooperatives (Nonghyup, Suhyup) taxed at only 9.5% up to 30 million KRW. These can significantly boost your effective return.

3. Ladder Strategy for Deposits: Instead of putting all your money in a single 12-month deposit, consider splitting it across 3, 6, 9, and 12-month deposits. As each shorter deposit matures, reinvest it for 12 months. This provides liquidity and allows you to capture rising rates in an increasing rate environment.

4. Loan Rate Shopping: For loans, the minimum rate displayed often applies to borrowers with excellent credit scores (900+), high-value collateral, and maximum LTV ratios. Ask each bank for your specific rate based on your credit profile before assuming you qualify for the advertised minimum. In Korea, most banks use the Korea Credit Bureau (KCB) or NICE credit scoring systems.

5. Internet-Only Banks: Internet-only banks (Kakao Bank, K-Bank, Toss Bank) typically offer higher deposit rates and lower loan rates than traditional banks due to lower operating costs. However, they may have lower deposit insurance limits or fewer in-person services.

6. Timing Your Deposits: Banks often run promotional rate campaigns at quarter-end (March, June, September, December) and year-end. Monitoring this tool regularly can help you catch limited-time offers with above-market rates.

## FAQ

### Q. Can the displayed rate differ from the actual bank rate?

Yes, there can be discrepancies between the rates shown in this tool and the actual rates offered by banks. The data comes from the FSS disclosure system, which banks update periodically — typically monthly or when product terms change. Promotional rates, limited-time offers, and recent rate adjustments may not be immediately reflected. Additionally, the rates shown assume standard terms; actual rates may vary based on your credit score, deposit history, and whether you meet specific preferential conditions. Always verify the current rate on the bank's official website or by contacting the bank directly before making a final decision.

### Q. What is 'after-tax interest'?

After-tax interest (세후이자) is the actual interest amount you receive after mandatory tax withholding. In South Korea, all interest earned on bank deposits and savings is subject to a 15.4% withholding tax, consisting of 14% income tax and 1.4% local income tax. This tax is automatically deducted by the bank when interest is paid. For example, if you earn 1,000,000 KRW in gross interest, the bank withholds 154,000 KRW in tax, and you receive 846,000 KRW as after-tax interest. Some specialized accounts offer reduced tax rates (9.5% at agricultural cooperatives) or full tax exemption (ISA accounts, certain qualified savings).

### Q. What does the loan rate range (min-max) mean?

Loan rates are presented as a range because the actual rate applied to each borrower varies based on multiple factors. The minimum rate represents the best possible rate offered to borrowers with the highest credit scores (typically 900+ on the KCB or NICE scale), maximum collateral value, lowest LTV (loan-to-value) ratio, and who meet all preferential conditions. The maximum rate applies to borrowers with lower credit scores or less favorable terms. For mortgages, the spread between min and max can be 1-3 percentage points. Your personal rate will fall somewhere in this range depending on your individual credit profile, income verification, employment stability, and the specific collateral value.

### Q. What is the difference between term deposits and installment savings?

Term deposits (정기예금) require a single lump-sum deposit at the beginning of the term, and you cannot add funds during the term. The interest rate applies to the full principal for the entire duration. Installment savings (적금) involve making fixed monthly deposits over the term. Since each monthly deposit earns interest for a progressively shorter period, the effective yield is lower than a term deposit at the same nominal rate. For example, a 12-month installment savings at 4% yields roughly half the interest of a term deposit at 4% because the average deposit duration is only about 6.5 months. Choose term deposits if you have a lump sum available; choose installment savings if you want to build savings gradually from monthly income.

### Q. How does the 15.4% interest tax affect my actual returns?

The 15.4% interest tax has a meaningful impact on your real returns, especially in a low-interest-rate environment. For a 10 million KRW term deposit at 3.5% for 12 months, the gross interest is 350,000 KRW, but after 15.4% tax (53,900 KRW), you only receive 296,100 KRW — an effective after-tax rate of 2.96%. To maximize after-tax returns, consider: (1) tax-exempt ISA accounts, which exempt up to 2 million KRW in annual interest; (2) preferential-tax savings at agricultural/fishery cooperatives (Nonghyup, Suhyup) where interest is taxed at only 9.5% on deposits up to 30 million KRW; (3) tax-exempt savings for eligible individuals (elderly 65+, disabled, national merit recipients). These strategies can effectively add 0.3-0.5 percentage points to your real return.