Zero-interest mortgages take centre stage at fair

  Kris Chantanotoke, executive vice president of Bank of Ayudhya, said last week that banks might not aggressively promote high-rate deposits at the expo but deposits remain an important product for supporting other transactions.
BAY will promote savings accounts due to their lower costs. They can also strengthen other products. However, if customers want higher returns, the bank has mutual funds to show them.
Visitors desiring better returns might seek savings and annuity insurance instead, he said.
The situation with deposits gives life insurance companies an opportunity to promote their products, especially savings and annuity policies, because both products give higher returns than deposit rates.
For example, Tokio Marine Life Insurance (Thailand) will sell its new Hero 10/1 savings policy with a guaranteed internal rate of return of 4.21 per cent at the fair.

HEALTH COVERAGE
Krungthai-AXA Life Insurance will promote medical riders to main policies at the event because health protection is becoming a crucial issue for people who care about their health. Health insurance will also help relieve some of the financial burden in case of an accident, said Saifon Sutchasila, chief marketing officer.
The company would stress health insurance rather than a high return to policyholders, as its strategy is life protection, not a short-term win, he said.
Weidt Nuchjalearn, senior executive vice president of Krungthai Bank, said banks can no longer offer higher interest rates for deposit products now that it is required to pay higher premiums on them to the Financial Institutions Development Fund and Deposit Protection Agency.
Banks also will advertise the soft loan scheme at the expo to boost loans. A few individual and SME customers who were affected by the flood are withdrawing less from the scheme.
Home loans are a key high-|light of many banks because they are part of the soft-loan scheme. Krungthai Bank will offer its own campaigns at the fair including zero interest for nine months for home loans.
The bank will market non-performing assets (NPA) worth Bt7.8 billion at the fair. It will reduce asset prices and offer zero rates and relax loan conditions for NPA buyers, he added.
Chatchai Payuhanaveechai, an executive vice president of Kasikornbank, said consumers have learned that they can find the best deals for mortgages at financial fairs. Demand at the fairs is real, so banks can offer zero rates.
KBank will bring its latest credit product to the expo – the longest mortgage of 50 years – and include a zero rate for 8-10 months.
Bangkok Bank offers a 0.9-|per-cent rate for one year for its home loans. Siam Commercial |Bank is competing aggressively |with a zero rate for six months, |while Bank of Ayudhya waives interest payments for the first three months.