GSB reaches out to more schools
Government Savings Bank plans to expand its savings bank operations in another 120 schools as part of its efforts to educate children on the importance of financial discipline, Lersak Chuladesa, president and chief executive officer of the bank, said yest
Apart from organising the Children’s Day event at the GSB headquarters in Bangkok and key branches in provinces, GSB plans to expand its savings programme in schools, he said.
Currently, the bank support 613 schools nationwide with its savings scheme that encourages children to deposit their savings and learn simple financial accountancy. Currently 1.4 million students have joined the scheme and their combined deposits total Bt414 million, he said.
“The GSB has a long history of promoting savings among kids and last year we got new deposits from them of Bt50 million,” said Lersak.
The bank also supports music and sports activities for schools joining the scheme, he said.
Scholarships are also provided to students who are interested in science and mathematics. Those who are good kids also would be also offered ethics reward.
Kids who deposit at least Bt50 today will get a piggy bank as Children’s Day gift, he said. The bank will be organising many competition and fun activities, he said.
The Bank for Agriculture and Agricultural Cooperatives will also hold fun activities today at a compound of the state TV Channel 11. The bank currently offers five-year deposits to children and parents. Children who deposit at least Bt1,000 every month for five years will get an interest rate return at 1.5 per cent annually plus with Bt500, 600, 700, 800 and 1,000 at the end of each year respectively.
The bank said it wants to encourage children to save their money. Government Housing Bank also holds a Children’s Day event at Pracharatbamphen School in Huay Khwang.
State banks are expected to gain more deposits as the Deposit Protection Agency will reduce the savings guarantee to only Bt1 million per account starting from August. Depositors worried about the risk of a bank run may shift their savings from commercial banks to state banks as the government would still provide a blanket guarantee to depositors.
A new executive decree to levy more premium on commercial banks may also force them to lower deposit rates prompting depositors to shift their funds to state banks. Lersak said the impact will be obvious in August. He also believed loans from his banks would grow sharply this year as flood victims both individuals and firms need funds for reconstruction.
