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shostahoosier
Joined: 14 Apr 2009
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 Posted: Thu Sep 01, 2011 8:59 pm Post subject: Anyone put their money into a CD here in Korea? |
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Does anyone have any recommendations for where to keep a large sum of money while in Korea?
Are there any banks that have good deposit rates? I wont need to access my money for a year or so. |
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Juregen
Joined: 30 May 2006
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| Posted: Thu Sep 01, 2011 9:06 pm Post subject: |
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| My bank account is a good place. |
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shostahoosier
Joined: 14 Apr 2009
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| Posted: Thu Sep 01, 2011 9:10 pm Post subject: |
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| Juregen wrote: |
| My bank account is a good place. |
Haha, thanks for getting that response out of the way.  |
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swinewho
Joined: 17 Aug 2009
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| Posted: Thu Sep 01, 2011 9:20 pm Post subject: |
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| just buy gold and keep it in under your TV - make sure to tell loads of people as well! |
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isisaredead
Joined: 18 May 2010
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| Posted: Thu Sep 01, 2011 9:23 pm Post subject: Re: Anyone put their money into a CD here in Korea? |
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| shostahoosier wrote: |
Does anyone have any recommendations for where to keep a large sum of money while in Korea?
Are there any banks that have good deposit rates? I wont need to access my money for a year or so. |
i'm also very interested in this question. what are some investment opportunities while living in korea? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Sep 01, 2011 9:51 pm Post subject: |
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I have a time deposit at woori bank (I'm risk adverse so the volatility in the markets and/or mutual funds are not something I want to deal with).
The rates are competitive with the other banks in Korea.
I last locked in @ 5% but they are somewhat lower (2.60% for 1 year, 2.70 for 2, and 2.80 for 3 years ) at the moment.
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shostahoosier
Joined: 14 Apr 2009
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| Posted: Thu Sep 01, 2011 10:30 pm Post subject: |
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| ttompatz wrote: |
I have a time deposit at woori bank (I'm risk adverse so the volatility in the markets and/or mutual funds are not something I want to deal with).
The rates are competitive with the other banks in Korea.
I last locked in @ 5% but they are somewhat lower (2.60% for 1 year, 2.70 for 2, and 2.80 for 3 years ) at the moment.
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Do you think I'll get a better rate in Korea than I would back in the states? |
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Drew345
Joined: 24 May 2005
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| Posted: Thu Sep 01, 2011 10:45 pm Post subject: |
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I keep a CD with Shinhan.
The rates here are much better than in the states, but they are still lower than a few years ago. If the rates here are better, I would think that it means that the currency markets are expecting the won to weaken against the dollar, or that there is some risk that the CD won't pay up. But nowadays people are expecting the won to strengthen against the dollar, and I'm pretty sure shinhan is going to pay up on their CD, so it seems strange that the Korean CD rates are much better than in the US. Still, rates are better here. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Sep 01, 2011 11:22 pm Post subject: |
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| shostahoosier wrote: |
| ttompatz wrote: |
I have a time deposit at woori bank (I'm risk adverse so the volatility in the markets and/or mutual funds are not something I want to deal with).
The rates are competitive with the other banks in Korea.
I last locked in @ 5% but they are somewhat lower (2.60% for 1 year, 2.70 for 2, and 2.80 for 3 years ) at the moment.
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Do you think I'll get a better rate in Korea than I would back in the states? |
With the US prime rate at about "0"% and banks continuing to fail... Ya.
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mellinger
Joined: 21 Jan 2007
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| Posted: Fri Sep 02, 2011 4:43 am Post subject: |
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I've been doing some high-interest banking at Tomato Bank. Funny name, but so far, a trustworthy bank.
Their rates have been between 5% and 6% for the last two years. Which is fantastic, considering that the money sitting in my bank at home is getting less than 1% on a CD there.
My one account with Tomato Bank is a time deposit where it sits for a year and then at the end of the year the interest is accrued.
The other one is where a certain amount of my paycheck goes in each month and then at the end of the year it's all added up and interest added to it.
I've been satisfied with them so far, and as long as you don't have over 50 million won in the bank, you will be insured up to 50 million won. |
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isisaredead
Joined: 18 May 2010
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| Posted: Fri Sep 02, 2011 4:50 am Post subject: |
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| ttompatz wrote: |
I have a time deposit at woori bank (I'm risk adverse so the volatility in the markets and/or mutual funds are not something I want to deal with).
The rates are competitive with the other banks in Korea.
I last locked in @ 5% but they are somewhat lower (2.60% for 1 year, 2.70 for 2, and 2.80 for 3 years ) at the moment.
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i might actually be better setting up a term deposit with my australian bank. |
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nate1983
Joined: 30 Mar 2008
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| Posted: Fri Sep 02, 2011 1:56 pm Post subject: |
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| Drew345 wrote: |
I keep a CD with Shinhan.
If the rates here are better, I would think that it means that the currency markets are expecting the won to weaken against the dollar, or that there is some risk that the CD won't pay up. |
That's exactly it. But it's probably more appropriate to think about the forward rate (i.e. what the USD/KRW will be trading at in 6 months) as a function of the interest rates rather than vice-versa. That's why what "people expect" doesn't always line up with what the market "expects." And as you mentioned, there could be a bit of a credit premium to compensate for the "riskiness" of Korean banks, but I bet that's pretty negligible.
Anyone know if Korean banks have deposit insurance? |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Fri Sep 02, 2011 4:38 pm Post subject: |
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Yes, Nate, there is deposit insurance. I know it's at least 40 million won, but it might be higher. I just can't remember.
We had some with Prime Bank a few years ago, but finished-up our CD's and took our money out when they became less competitive compared to Woori and other more prominent banks. At one point, I had a CD getting 8.29% from Prime.
I wouldn't touch Prime Bank now, as they are part of that Techno Mart building that might fall down (as in they own it, I believe). That and after Busan Savings had serious issues, we're a little leary to trust these kinds of banks these days. |
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DIsbell
Joined: 15 Oct 2008
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| Posted: Fri Sep 02, 2011 6:24 pm Post subject: |
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| Check into your bank back home. I use Wells Fargo in the US and I just opened an 11 month CD at 0.15%. |
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Mr. Peabody
Joined: 24 Sep 2010
Location: here
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| Posted: Fri Sep 02, 2011 7:08 pm Post subject: |
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| nate1983 wrote: |
Anyone know if Korean banks have deposit insurance? |
| mellinger wrote: |
I've been doing some high-interest banking at Tomato Bank. Funny name, but so far, a trustworthy bank.
Their rates have been between 5% and 6% for the last two years. Which is fantastic, considering that the money sitting in my bank at home is getting less than 1% on a CD there.
My one account with Tomato Bank is a time deposit where it sits for a year and then at the end of the year the interest is accrued.
The other one is where a certain amount of my paycheck goes in each month and then at the end of the year it's all added up and interest added to it.
I've been satisfied with them so far, and as long as you don't have over 50 million won in the bank, you will be insured up to 50 million won. |
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