예금 vs 적금: which Korean savings account?

Korean banks sell two basic savings products. The Financial Supervisory Service (FSS) consumer site explains them like this.

정기예금 (fixed deposit): grow a lump sum
You already have the money, say 10 million won, and you leave it with the bank for a fixed period. Interest is paid monthly or at the end. In principle the bank does not give the money back before the end date.

적금 (instalment savings): build a lump sum
You pay in every month, say 500,000 won, and at the end you receive the total plus interest. Two kinds: a fixed amount each month (정액적립식) or any amount you like (자유적립식).

Three things the FSS says to check

• Early cancellation: if you close the account before the end date you do not get the agreed rate, so you can lose out. The early-cancellation rate rises with the time you kept the account.
• Bonus rates (우대금리) come with conditions: a card, an automatic transfer, a salary deposit, or opening online. If you stop meeting the condition you can lose the bonus.
• The same bank can pay a different rate by channel, for example more for opening in the app.

Both are deposits, so they are covered by deposit insurance up to 100 million won per person per bank. We explain that in a separate post.

It depends on the product and its conditions, not on the bank's name. We do not recommend a bank.

Next step: before you sign, ask two questions: what is the rate without the bonus conditions, and what do I get if I cancel early.

Sources: FSS consumer portal, deposit products; FSS consumer portal, before you sign. Checked 11 October 2026.