Korean Job Discussion Forums

[bliss]

Hi there.

Does anyone have money invested (eg. simple term deposit) with a Korean bank? Is it easy to set up & manage? What are the interest rates like?

My story: The exchange rates are shocking, so I'm delaying sending money home, but I don't just want it to sit in a Korean bank account gaining nothing.
I'm pretty much a learner when it comes to investment knowledge (esp. in Korea).

Thanks in advance for any comments!

[ttompatz]

[victorology]

I have an MMF that right now is returning a little over 5%. The return is variable. I like keeping my money in an MMF because I can take it out at any time. I have also seen CMA's being advertised with a 5.44% return recently. I like these two options because you can access your money at any time.

I'm not sure what one year CD's are going for at the moment but I would think you could get 6% or better.

[PRagic]

We locked some up at 7%. I put all the info on a similar thread a month or so ago. Just walk around to some local banks credit unions and you'll find something.

[bm2008]

What is an MMF and a CMA????

Anyway, I noticed the Post Office doing term deposits with around 5% interest - the rate increases the longer the term, of course. I'm probably going to open an account there.

I also had a term deposit with Wooribank before. The most difficult part was getting enough information to choose the right account. Eventually I was able to find a phone number and speak to a Wooribank English translator on the telephone, who advised me what the best account was. Either do that or ask a Korean friend to go to the bank with you (these situations make you feel so dependent on others' help, don't they?)

I'm sure putting your money in a term deposit is better than doing nothing with it. The only thing I wonder is: if you take out your money before the end of the term, what are the penalties like? Does anyone know about this?

[Ya-ta Boy]

Nong-Hyup has a program that I like. I deposited some money into two accounts and each month the bank withdraws additional money from my monthly check. That money is invested by the bank and currently I'm getting 13.33% on one account and 23.97% on the other account.

The interest is flexible, depending on the stock market (and I'm guessing the Chinese market as well).

I joined two years ago and had to agree to a 2-year minimum but when I renewed at the beginning of last month I could choose 1 year or 2 years. Since I'm not sure about my plans next year, I chose 1 year. Anyway, I'm pretty happy.

I know Nong-Hyup has several different investment programs each month. It's worth checking out if you are going to be around at least a year. Two bonuses: I get taken to the front of the line every time I go in (once I was told I am a VIP ) and I got super service when I wanted a credit card. FAR better service than I ever got at KB.

[ttompatz]

[victorology]

An MMF is a money market fund. Basically, you put money into an MMF and you earn interest on it. It's a variable rate. Recently, mine has been earning a little over 5%. You can take your money out of an MMF at any time without penalty.

As someone mentioned earlier, you can probably find a CD that pays as high as 7%. If you're not fully committed to keeping your money in for a fixed period of time, I would recommend an MMF. The interest rates are good and you can access your money at any time.

[ttompatz]

[victorology]