Hyundai Securities Co. launched a new check card that is expected to boost the profitability of financial products, including funds, ELS and retirement savings, among others. It is called the “Able I Max Card,” which the securities firm introduced this year following its first successful launching of check card for the first time in the securities industry not long ago.
The most attractive feature about the Able I Max Card has been that users get from six to 14 percent in profit to the amount of money paid with the card, an eye popping practice for cardholders in an age of the low interest rates.
The popular check card comes in two kinds: CMA-type and financial product-type. Hyundai Securities pays financial product-type cardholders additional interest payments if the cardholders subscribe to one of its financial products, such as securities type funds, ELS and retirement savings. The additional profits range from 14.4 percent on securities-type funds, 12 percent for ELS, derivative linked stocks (DLS), retirement fund savings and 6 percent for equity linked bonds (ELB) and other DLS.
For example, if a customer deposits 5 million won into his securities type account and spent a monthly average of 500,000 won with the card, the company will set aside 14.4 percent of the 500,000 won he spent on average monthly interest charges and pay out a lump sum to his CMA account in cash after 12 months. If a customer wants to earn more, he ought to subscribe for more financial products, such as securities type funds, ELS, DLS and others, and deposit more than 5 million won and 4 million won the retirement savings. If the deposits fall short of the subscribed amounts — which is 5 million won for each account — then the subscriber would only get 6 percent interest on the average monthly amount of money he spent with the card to pay for something.
The CMA-type pays double the interest rate paid on the balance in the account, which equals three times the amount paid with the card related to the Hyundai Able CMA. For example, if the basic earning rate is 1.9 percent and 1 million won is spent monthly on average with the card, an interest rate of 3.8 percent will be paid on the 3 million won left in the account.
But the maximum interest rate is 5 percent and therefore, the subscriber must spend more than 300,000 won monthly on average with the card to get the maximum interest rate.
The Able I Max Card basically should use the Hyundai Able CMA for a settlement account and therefore can enjoy the same benefit given to the CMA.
The Hyundai Able CMA should have more than 500,000 won in transfers on a monthly basis and automatically transfer payment for such things as phone bills more than five times a month to get 4.1 percent interest on the five million won in the deposit at the maximum.
If the card usage exceeds 100,000 won in the previous month, cardholders would not pay any fees at any ATMs including withdrawals, transfers and others.
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