Term deposit or monthly savings · simple or monthly compound · after tax
Input
Result
Legal basis (Korean law): 소득세법 제129조 · Values as of 2026-10-30
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How it works
Korean interest income is taxed 15.4% (14% national + 1.4% local) at source.
Installment savings (적금): a 5% advertised rate pays interest only on months each deposit is held, so the effective yield on your money is far lower than on a deposit.
Non-residents may get a lower treaty rate — ask your bank.
FAQ
How much interest does ₩10M earn in a Korean bank at 3%?
About ₩300,000 a year before tax and ₩253,800 after the 15.4% tax.
Worked example
Example: ₩10 million in a 12-month term deposit at 3% simple interest earns ₩300,000 before tax. Korea withholds 15.4% (₩46,200), so you receive ₩253,800 in interest and ₩10,253,800 at maturity — an after-tax return of 2.54%.
An installment savings account (적금) paying 3% on ₩1 million a month earns only about ₩195,000 before tax over a year, because each deposit earns interest only for the months it was held.
Common mistakes
Do not multiply the savings rate by the total deposits; interest on installment savings is only about half the headline rate relative to total deposits, because the average deposit is held for about 6.5 months.
Compound results depend on how often interest is added (monthly or yearly).
Some accounts have lower tax (e.g. tax-free savings for eligible groups); interest plus dividends above ₩20 million a year are added to comprehensive income tax.
Leaving money in an account after maturity earns a much lower post-maturity rate.