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Korean Savings Interest Calculator
Calculate interest earned on Korean savings accounts and fixed deposits
Why Use This Tool?
- Compare different savings products with accurate after-tax returns
- Understand the impact of Korean interest income tax on your savings
- Choose between simple and compound interest calculations
Calculation Method
For installment savings (simple): Interest = Monthly deposit × Monthly rate × n(n+1)/2. For fixed deposits (simple): Interest = Principal × Annual rate × Period/12. Tax rates: Normal 15.4%, Tax-free 0%, Reduced 9.5%.
How to Use
- Choose between installment savings (적금) and fixed deposit (예금)
- Enter the deposit amount and annual interest rate
- Set the savings period in months
- Select your tax type (normal 15.4%, tax-free, or reduced 9.5%)
- View the after-tax interest and total amount
FAQ
What is the difference between 적금 and 예금?
적금 (installment savings) requires monthly deposits over a fixed period. 예금 (fixed deposit) requires a one-time lump sum deposit for a fixed period. Both earn interest but calculation methods differ.
What tax is applied to savings interest in Korea?
Normal taxation applies 15.4% (14% income tax + 1.4% local income tax) on interest earned. Tax-free accounts (비과세) and tax-reduced accounts (세금우대, 9.5%) are available for eligible individuals.
Who qualifies for tax-free savings?
Tax-free savings accounts are available for certain groups including seniors (65+), disabled individuals, and low-income earners, up to a maximum deposit limit.
Should I choose simple or compound interest?
Compound interest earns more over time as interest is calculated on accumulated interest. Most Korean bank products use simple interest for installment savings and offer both options for fixed deposits.
What is a good savings interest rate in Korea?
Rates vary by bank and product. As of 2024, typical rates range from 3% to 5% for installment savings and 3% to 4.5% for fixed deposits. Online-only banks often offer higher rates.