State banks are rushing to provide higher deposit rates to customers, including one scheme that offers up to 17%.
During the 23rd Money Expo 2023, Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC) introduced campaigns to attract customers with short-term deposits for 3-5 months by offering step-up interest rates.
On March 29, the Monetary Policy Committee unanimously agreed to raise the policy rate to 1.75%, up from 1.50%, with immediate effect. The economy is expanding, with exports showing signs of recovery after contracting in the fourth quarter of 2022.
Vitai Ratanakorn, president and chief executive of GSB, said the bank launched a special deposit product for a period of 111 days using a step-up interest rate, with the highest rate rising to 16.99%. On average, the interest rate for this campaign will equal a fixed deposit rate of 4.23% per year.
The minimum amount needed to open an account is 10,000 baht, while the maximum for the campaign is 500,000 baht.
For loan products, GSB wants to move towards becoming a green bank by offering loans for solar rooftop installations, as well as purchases of electric and hybrid vehicles.
The bank also launched the "GSB Green Biz" loan programme to support entrepreneurs investing in eco-friendly businesses. The loan carries an annual interest rate of 3.99%, fixed for the first two years, and a maximum repayment period of 10 years.
Chatchai Sirilai, managing director of BAAC, said the bank organised a campaign named "Exclusive 58" that offers a step-up interest rate of up to 15.80% per year, with an average of 3.50% annually, for deposits of between 50,000-500,000 baht. The deposit balance has to be maintained for 158 days.
Similar to GSB, BAAC plans to focus more on green credit to develop organic farming, food safety projects, alternative energy, and environment and natural resource conservation, he said.
In separate news, a Deposit Protection Agency statement said total deposits under protection amount to 20 trillion baht.
In accordance with the law, if a member financial institution's banking licence is revoked, depositors are protected for up to 1 million baht per depositor per institution.