사진 확대

A, who is a freshman in society who is interested in financial technology, has a lot of worries about asset management these days. This is because it was difficult to decide whether to invest in stocks or leave money in deposits as there were talks that the benchmark interest rate could rise further.

On July 16, the Bank of Korea raised its key interest rate to 2.75% from 2.50%. The reason was that the economy was improving, but prices, housing prices, and household loans continued to rise. It was the first increase in three and a half years, and the Bank of Korea said it needs to continue its interest rate hike in the future.

So what exactly is the base rate. In other words, it can be seen as the 'price of money' set by the Bank of Korea. The Bank of Korea deals with commercial banks, not the general public, and the interest rate applied in this process is the base rate.

But why does the Bank of Korea's rate hike affect our bank account. If the Bank of Korea raises its benchmark interest rate, the interest rate applied to banks to borrow and lend money will also rise.

As a result, for banks, the cost of raising funds itself becomes expensive because they have to borrow money at higher interest rates than before. The bank then tries to fill the shortfall by collecting more money, or deposits, that is, encourages people to take over the money by raising the deposit rate. So, when the Bank of Korea raises its benchmark interest rate, the deposit rate will follow over time, and the bank's financing costs will also increase.

The problem is the speed of the rise. While deposit rates rise little by little, lending rates rise much faster and significantly. Why is there such a difference. It can be looked at through the industrial structure of the bank. While loan interest rates reflect changes in market interest rates quickly, deposit rates often rise slowly depending on the degree of competition between banks.

In Korea, only a few large banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, occupy most of the deposit and loan markets. Because there are not many options, customers do not easily move to another bank even if the bank does not raise the deposit rate significantly. As competition is less intense, the increase in the base rate is not fully reflected in the deposit rate.

Eom Sang-min, an economics professor at Kyung Hee University, explained about this phenomenon, "In a situation where a small number of banks have market dominance, there is an 'incomplete transfer' in which interest rates are not delivered as they are and only partially reflected."

사진 확대

On the other hand, loan interest rates are different. In particular, variable-rate loans have interest rates that change every three to six months depending on the index called "COFIX." COFIX is an index that shows the cost of banks raising money, and it is an indicator that is quickly reflected when market interest rates rise. This is why loan interest rates move faster than deposit rates.

In fact, fixed mortgage rates at the top five commercial banks have risen rapidly, reflecting the prospect of a rise in market rates in advance, while fixed deposit rates (one-year maturity) are moving relatively slowly. As the speed difference between the two interest rates widens, the gap between loan and deposit rates and the so-called "deposit interest rate difference" also increases.

So you can't just be happy with a rise in deposit rates. Even the same person is happy to raise the deposit rate from the standpoint of saving, but the rising loan rate comes as a burden for those who have already received loans or need to receive them in the future.

In particular, it is important to set in advance "how to pay interest" when taking out loans at a time when interest rates are likely to continue to rise, as they are now.

During the interest rate hike period, it becomes important to choose between a "fixed interest rate" in which interest rates remain until the end or a "floating interest rate" that varies depending on market conditions. Young people or newcomers to society, who do not have a solid income base yet, have less room to withstand a sudden rise in interest rates. If you choose a variable rate because the fixed rate is higher now and the interest rate rises more than expected, it may be difficult to afford.

Professor Eom said, "The more sensitive income is to interest rates, the more dangerous variable interest rates become." On the contrary, if you have a relatively stable income, you can afford variable interest rates.

The possibility of a further rate hike by the Bank of Korea remains as the country's gross domestic product (GDP) exceeded expectations in the second quarter. Rising deposit rates are good news for savers, but they can be more burdensome for those who want to borrow money. It is important to carefully examine your financial situation and the stability of your income and make a choice that suits you rather than a simple number. Reporter Bae Yoon-kyung and intern reporter Kim Joo-won