They say interest rates are going down: is now the time to switch savings accounts?
These days, if you look at the news, there’s constant talk about cutting the base rate. So what I’m wondering is whether it’s right to lock in a long-term deposit/installment savings now while rates are high, or whether it’s better to wait longer.
Some people around me say, “Lock it in for as long as possible before rates go down,” while others say, “There’s still more opportunity,” so I can’t decide. I’m curious what everyone else is doing.
10 answers
Agreed, this might be the last chance. I locked in a 3-year plan last month too.
Got a source? No one knows when the cut will happen, so aren't you being overly confident?
Honestly, instead of agonizing over which way interest rates will go, just averaging in is the answer. Don't go all in at once—if you split your entry into 3-month intervals, timing risk drops sharply. Also, the deposit insurance limit is 50 million won, so don't forget to spread your money across banks.
Well, that's a bit questionable. A base rate cut doesn't mean commercial banks' savings rates immediately follow suit and drop, and deposit and savings rates already move with that priced in—so if you jump in after seeing the news now, you're often too late.
Same here. Last year I waited, thinking interest rates would go up more, and ended up missing out, so this time I locked in half.
For real, if you drag out the deliberation, you lose.
The people around you who are always saying, 'There are more opportunities,' don't actually invest their own money lol. Just take it as reference and make your own call.
Oh, I didn't know this. It's the first time I've heard that deposit and savings rates are reflected in advance.
Isn't that old news? These days, banks aren't competing on deposit rates, so even if it makes the news, it'll hold for a few months. No need to rush.
But these days, rates on parking accounts and CMAs are pretty good, so you don’t really need to lock your money up long-term, do you? When you consider liquidity, that seems better. If you lock it up for 3 years and then urgently need the money, you’ll end up giving back almost all the interest if you withdraw early.