There's talk of rate cuts these days—should I switch my savings deposits?
My bank savings account is maturing, and I'm deciding whether to redeposit or move to another product. Some say that since the base rate is about to be cut, locking in a fixed rate now would be a loss; others say that switching late would also be too late.
Anyway, it's not a big amount—about 10 million won—so I guess diversifying would be better?
7 answers
Agree, better to lock in a fixed rate before rates go down further.
Isn't that old news? It should already be priced in.
I went through a similar dilemma last year and just kept it in a parking account to wait. Anyway, if it's 1,000, the interest difference is negligible, so there's no rush. Since deposit rates will also drop when rates are cut, it's better to open even a 1-year account in advance.
I feel the same haha, so many worries but no answer in sight.
With 10 million won, compound interest doesn’t make much of a difference, so rather than switching around based on market conditions, it’s better to put the money in a short-term product once rate cuts are confirmed, then move to a long-term deposit afterward. The most important thing is to sign up under terms that don’t penalize you for early withdrawal—that’s the best move.
Well, that's a bit... Saying that locking in a fixed rate now is a loss is just a prediction. Even if rates are cut, commercial bank deposit rates have already priced it in and dropped, so wouldn't it be better to compare other terms first rather than re-depositing?
The right answer is to just put 10 million won aside and go somewhere you feel at ease lol