Parking Account Daily Interest and Deposit Protection
Parking accounts are instant-access deposit accounts that can be used to hold emergency funds for a short time. Learn the difference between daily interest calculations and actual payment dates, the balance limits for interest rates, and deposit protection rules by financial institution.
A parking account is a term for an instant-access deposit account that calculates interest even on balances held briefly.
Even when interest is calculated daily, it may be paid on the product's scheduled payment date.
Compare interest rates based on your balance tier and the conditions for preferential rates you can meet, rather than the highest rate.
From September 1, 2025, general deposits eligible for protection are protected up to 100 million won per person per financial institution, including principal and prescribed interest.
CMA and MMF are financial products whose structures and withdrawal terms you should check.
A parking account is a deposit account that lets you deposit and withdraw money as needed while you temporarily hold funds you may need. Interest is calculated according to the product’s terms, even if you leave the money in for just one day. If you plan to keep an emergency fund in one, check the applicable interest rate, balance limit, and interest payment date.
The interest example is based on KakaoBank’s product information as of September 16, 2026.
What is a parking account?
A parking account is a general term for a deposit account used to hold short-term funds while allowing deposits and withdrawals as needed. The name comes from the idea of temporarily parking money. Banks and savings banks offer these products.
It is not a legally distinct type of deposit from an ordinary checking account. KakaoBank Safe Box is also described as an ordinary deposit. Some products provide a separate space for holding money within a linked account.
You can use one for money whose spending date is hard to predict, such as an emergency fund. You can also hold money there while waiting to invest it. If you will not need the money for a set period, compare the terms of fixed-term deposits as well.
Category | Parking account | Fixed-term deposit | Installment savings
Main use | Holding money you may need to withdraw | Depositing a lump sum for a set period | Saving money in installments
Access to funds | Withdrawals under the product’s terms | Check early termination terms if you need the money before maturity | Check the interest rate that applies if you terminate early
Interest rate factors to check | Balance tiers and preferential-rate requirements | Deposit term and early termination rate | Payment method and preferential-rate requirements
When is daily interest paid?
Calculating interest daily and paying interest every day are different terms. Some products accumulate daily interest and pay it together on a set date. If there is an instant payment feature, you can request payment separately.
KakaoBank Safe Box calculates interest on the final balance each day. Its regular payment date is the day after the fourth Friday of each month. It also offers a way for customers to request payment. This description is based on KakaoBank’s interest payment information.
· Balance used for calculation: Check when the balance used to calculate interest is determined.
· Payment schedule: Distinguish between how often interest is calculated and when it is paid.
· Compounding terms: Check whether interest you receive is added to the balance used for future interest calculations.
If you deposit and withdraw money on the same day, you may not earn interest for that day. Take particular care with products that use the final balance. The balance remaining at the time specified for interest calculation is the starting point.
Example of daily interest calculation
An annual interest rate is a rate for one year, not a daily rate of return. Daily interest is calculated using the applicable balance and annual interest rate. The amount actually paid varies with taxes and how amounts are rounded to whole won.
The following example uses a deposit of 10 million won, the basic holding limit for Safe Box. It assumes an interest rate of 1.80% annually. This was the advertised basic rate before tax on September 16, 2026. It is not a guaranteed rate for accounts opened now.
Calculation | Formula | Result
Daily interest before tax | 10,000,000 won × 0.018 ÷ 365 days | About 493 won
After-tax equivalent under standard taxation | Daily interest before tax × 0.846 | About 417 won
The after-tax equivalent is an estimate using the standard withholding tax rate of 15.4%. It does not account for other tax treatments, such as tax exemptions. The amount actually deposited depends on the tax calculation at the time of payment.
You can check the standard tax treatment in KB Kookmin Bank’s deposit calculation information. If you keep money in the account for several days, use the applicable balance for each day. If the interest rate changes, calculate the periods before and after the change separately.
How should you compare interest rates and limits?
Compare the interest rate that will actually apply to your balance. You should not assume that the advertised highest rate applies to the entire balance. If you do not meet the preferential-rate requirements, only the basic rate may apply.
Term to check | What to check | How it affects your decision
Basic rate | Rate applied without additional requirements | Interest earned if you do not meet preferential-rate requirements
Preferential-rate requirements | Requirements such as salary deposits or transaction activity | The rate you can actually maintain
Balance cap for the rate | Balance range eligible for the higher rate | Average return on your entire balance
Calculation by balance tier | Whether a different rate applies only to the portion above the cap | Interest earned when you exceed the cap
Account and holding limits | Amount you can put in the account | How much of a lump sum you can hold
Rate changes | When a changed rate takes effect | Changes to expected interest after opening the account
The balance cap for a higher rate may differ from the deposit limit. Some products let you hold money above the rate cap at a lower rate. Do not assume you cannot deposit more solely because of the rate cap.
The rate on a variable-rate product can change after you open an account. Interest rates by financial sector from February 2023 cannot be used for a current comparison. Just before opening an account, check the effective date in the financial company’s product disclosure.
How does the 100 million won deposit protection limit apply?
Eligible ordinary deposits are protected up to 100 million won per person, per financial company. This limit has applied since September 1, 2025. It covers the combined amount of principal and eligible interest.
Deposit protection limit of 100 million won (including principal and interest) Financial Services Commission, “A New Era of the 100 Million Won Deposit Protection Limit Begins Today”
You can confirm the effective date in the Financial Services Commission announcement. The former 50 million won limit should not be used to describe the current rules. Eligible ordinary deposits at the same financial company are combined.
Where the money is held | How the protection limit for ordinary deposits is calculated
A parking account and a fixed-term deposit at the same bank | The two products are combined
Different branches of the same financial company | Deposits are combined even if the branches differ
Eligible deposits at different financial companies | Calculated separately for each financial company
If you hold principal up to the limit, some interest may push the total above it. Check deposits you already have at the same financial company. When splitting money among financial companies, identify which company is the actual party to each contract. The rules for combining deposits are explained in the Financial Services Commission’s deposit protection Q&A.
Comparing parking accounts with CMA and MMF
A parking account is a deposit, while a typical securities firm CMA uses investment products. CMA stands for Cash Management Account. It is an asset management account that invests its balance in products such as RP or MMF.
MMF stands for Money Market Fund. It is a fund that invests mainly in short-term financial products. Its returns depend on investment performance and vary with the results. An MMF-type CMA uses this fund to invest the account balance.
Category | Bank or savings bank parking account | Typical securities firm CMA | MMF
Structure | Deposit account with deposits and withdrawals as needed | Invests the account balance in investment products | Fund investing in short-term financial products
Basis for returns | Contracted deposit interest rate | Varies by type, such as RP-type or MMF-type | Fund performance
Loss of principal | Subject to the deposit contract and protection scheme | Possible, depending on the investment product | Possible
Deposit protection | Applies if it is an eligible deposit | Generally not covered | Not covered
Conditions for withdrawing money | Account-specific withdrawal terms | Terms of automatic sale and withdrawal services | Redemption request and payment terms
There are exceptions that qualify for deposit protection, such as merchant banking-type CMAs. Do not judge by the name alone; check the protection terms in the product description. The Korea Life Insurance Association’s financial life guidebook explains the merchant banking-type category.
A CMA or MMF does not always offer a higher return than a parking account. In particular, an MMF’s past return is not a contracted interest rate for the future. Compare products over the same period and on the same basis for taxes and costs. You can check the structure and risks in Samsung Securities’ CMA information.
When can you use an emergency fund for payments?
For an emergency fund, distinguish between the balance you hold and the balance you can actually use for payments. Card payments may not be taken directly from the space where the money earns interest. The ability to withdraw money and the ability to make automatic payments are separate conditions.
For example, withdrawals from Safe Box go through its linked checking account. You cannot register Safe Box as an account for card payments or automatic transfers. This restriction is stated in KakaoBank’s frequently asked questions.
With an MMF, the time you request redemption may differ from the time you receive the cash. Immediate withdrawals from a CMA may also be handled through a separate service. Korea Investment & Securities describes a method of withdrawing through a CMA-backed loan, subject to conditions. Details are in the Korea Investment & Securities CMA product guide.
Review where to keep your emergency fund in this order.
· Check how much you need for upcoming payment dates.
· Check which account automatic payments will actually be taken from.
· Check how to move money from the holding space to the payment account.
· Check transfer limits and available hours.
· Compare the interest paid on the remaining funds.
Common parking account mistakes
A common misunderstanding is treating different terms as if they mean the same thing. Check the interest rate, payment date, and protection limit separately. Before opening an account, keep the following distinctions in mind.
· Do not assume that interest calculated daily is automatically deposited every day.
· Do not calculate interest on your entire balance using the highest advertised rate.
· Do not assume that each account at the same financial company has its own protection limit.
· Do not treat an MMF’s past return as if it were a contracted deposit interest rate.
· Do not assume that a balance in a holding space is available for automatic payments.
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