Shinhan Investment debit card in spotlight

The Shinhan Investment Corp. debit card is drawing subscriptions thanks to the high interest rate it offers. / Courtesy of Shinhan Investment Corp.

By Yoon Ja-young

The historically low interest rate has prompted many to turn their eyes to cash management accounts (CMAs) at securities companies from traditional bank accounts. Debit cards, also known as check cards, are seeing the transition, with customers finding check cards issued by securities companies more attractive than those issued by banks.

The “CMA R+ Check Card” by Shinhan Investment Corp., for instance, has received more than 15,000 subscriptions in only three months since its launch, and is getting, on average, 240 new subscriptions a day.

The strength of the CMA R+ Check Card comes from the fact that it offers more benefits than credit cards. As the government encourages using debit cards instead of credit cards, check card users get a higher tax deduction at the year-end tax settlement. Shinhan also offers its check card subscribers diverse benefits such as discounts at some restaurants and coffee chains, or bonus points for card spending at movie theaters, gas stations, department stores, retail outlets and online shopping malls.

Shinhan Investment also offers a 3.4 percent interest rate for the CMA account if the subscriber spends 500,000 won or more with the check card each month. That is double the interest rate offered by banks for savings accounts. The more they use the CMA R+ Check Card, the higher interest rate they will get for their CMA accounts ― the interest rate jumps to 4.6 percent if monthly check card spending reaches 1 million won.

Those using both the CMA R+ Check Card and CMA R+ Credit Card can expect an even higher interest rate for the CMA accounts ― as high as 7.2 percent, depending on card spending.

“Subscribing to the CMA R+ cards is like catching two birds with one stone, enjoying a high interest rate and tax deduction,” said a spokesperson for Shinhan Investment Corp. “We plan to launch diverse financial products using Shinhan’s financial network.” The cards are available from the company’s branches around the country.