케이뱅크 마이너스 통장The common belief that internet banks have low interest rates has been betrayed. In January of last year, the interest rates for overdraft accounts at the three internet banks were lower than those at the five major banks. The formula that internet banks have overdraft accounts for high credit borrowers has been broken in less than a year.
As of December 2023, the average interest rates for credit limit loans (overdraft accounts) and credit loans at the five major banks and three internet banks were compared. The new loan amount is based on the credit score, and the credit score is based on the credit rating agency Korea Credit Bureau (KCB).
◇ Kakao Bank has the highest interest rate on overdraft accounts… 7.4% per annum
According to the Korea Federation of Banks on the 2nd, the bank with the highest overdraft account interest rate in December of last year was Kakao Bank. At 7.44% per annum, it was more than 1% higher than other internet banks.
The bank with the highest credit loan interest rate was K Bank. At 7.79% per annum, it is more than 1% higher than Kakao Bank, which has a similar average credit score. In other words, Kakao Bank makes profits from overdraft accounts, while K Bank makes money from credit loans.
If your credit score is in the 800s, it would be better to open an overdraft account at K Bank or get a credit loan from Kakao Bank. If your credit score is over 800, you are usually considered a high-credit customer.
If your credit score is in the 900s, it would be better to get a credit loan from a commercial bank rather than an internet bank. If you need an overdraft account, it is much more advantageous to open an overdraft account at a commercial bank than at Toss Bank (6.44%). In particular, the interest rates at Shinhan Bank (5.62%) and Woori Bank (5.69%) were lower.
The credit loan interest rates of the three internet banks are higher than the credit loan interest rates of all deposit banks at the same time, which was 6.58%. K Bank’s interest rate is high compared to the small loan interest rate of 6.95% of deposit banks. According to the Bank of Korea’s provisional statistics on the weighted average interest rate of deposit banks, the interest rate for general credit loans at deposit banks in December last year was 6.58% per annum, and the interest rate for small loans (under 5 million won) was 6.95% per annum. Deposit banks refer to commercial banks, local banks, internet banks, domestic branches of foreign banks, and specialized banks with a high proportion of deposit business.
◇ Toss and K Bank with lower interest rates than credit
It is common sense that overdraft accounts have higher interest rates than credit loans. However, an interest rate reversal that is different from common sense occurred at internet banks K Bank and Toss Bank.
If you look at the five major banks, the overdraft account interest rate is usually higher than the credit loan interest rate even if the credit rating is high. However, K Bank and Toss Bank’s overdraft account interest rate in December last year was lower than the credit loan interest rate. In particular, the interest rate inversion was severe in the case of K Bank in December last year. The overdraft account interest rate was 6.30% per annum, which was 1.49% points different from the credit loan interest rate of 7.79%. It seems that K Bank set the credit loan interest rate lower for low-credit borrowers with low credit scores and left a margin for high-credit borrowers. In other words, it can be said that it tried to receive more credit loans from low-credit borrowers. As of the 2nd, Toss Bank’s overdraft account interest rate (5.69~14.09%) was still set at a level lower than the emergency fund loan interest rate (5.87~15.00%). On the other hand, K Bank’s credit loan interest rate (5.36~12.72%) on the same day was higher than the credit loan interest rate (4.87~6.46%), so the interest rate inversion has returned. In other words, in the case of K Bank, it was a temporary inversion. When comparing internet banks, Toss Bank’s threshold was higher than the other two banks. While the average credit score of Kakao Bank and K Bank is in the 800s, Toss Bank’s is well over 900. The average credit score of people who opened an overdraft account at Toss Bank was 960.09. If you have a Toss Bank account, it means you have a high credit score. The average credit score of people who received credit loans was also quite high at 929.06.
