Korean Job Discussion Forums

[smithy]

Hey

I know this topic has been done before, but I'm looking for some up-to-date information if that's okay.

I'm going to be here for another year or so, and I'm going to be saving around 1.5m every month to pay for school when I'm done. I don't really want to send the money out of the country and lose a fee every month, so I'll keep it here and send it home in one lump sum at the end.

I've heard about some accounts that give high interest rates (I think Tomato was one?) but I have no idea if they are what I'm looking for in terms of saving a relatively small amount?

Am I best just get a savings account at my bank (KEB) and keeping it there?

Thanks

[nathanrutledge]

Savings banks have been going belly up recently. I'd avoid them for a little bit myself. Open a time deposit account at your bank - it's easy, it's insured, it's in the same place as your other stuff. It's a CD but they call it something else here.

Anyway, just go in and tell them you want one. Tell them the length of time and the amount and they'll set you up. Easy.

[raewon]

The smaller savings banks offer higher interest rates for money that is locked in for a year (and in some cases, even a bit higher if you lock it in for 15 months). As the previous poster mentioned, many savings banks went down last year. Unfortunately, I had invested my money in one of those savings banks.

The good news - everyone (I mean foreigners with ARC cards included)
is protected for up to 50 Million Korean Won at each savings bank.
Although it did take a fairly long time (6 months I believe) for me to get
my money back, I received 100% of the principal amount I had invested
plus 22% of the interest I should have received. The only real "hassle"
was that I had to visit a bank in person and file an application, whereas
Korean citizens could do so via the Internet.

I guess you probably won't be interested in this anyway, unless you have
a lump sum to deposit. And as a precaution, you should probably be careful as to which savings bank you invest in and (just to be safe) not
lock your money in for a year unless you are sure you are going to be in Korea for at least a year in a half.

Good luck!

[smithy]

[Modernist]

[smithy]

Okay, I think I understand.

But I don't have a lump sum right now, I just want to pay money into this account monthly to keep it there without being able to withdraw it and hopefully accrue some interest.

Does this account exist?

[nathanrutledge]

You CAN withdraw the money early, and you won't lose any - you only forfeit the interest earned.

Also, I wouldn't say you earn "more" for a longer time. You get more money for a longer deposit because of inflation. If they offered less, you'd LOSE money because inflation would eat it up.

You can't add into the account once it's opened, but you can open multiple ones. Lots of people ladder their accounts. That means that they will open an account with a 1 year, 2 year, 3 year, 4 year, and 5 year maturation date. Once the one year account matures, they reinvest it into a 5 year account. By doing this, they always have money close at hand, and they are earning the best interest rates.

If you want to save a million a month, simply go into the bank and give them 1 mil for an account. Next month, go in and do it again. Repeat this to your hearts content. If you're going to be here for a year, and you don't need the money, put it in for 1 year, then next month do it for 11 months (if they allow 11 months), then 10, then 9, etc.... You'll money will all come available at the same time (when you are leaving) and it will earn the best possible rate.

[Lazio]