Deposit war heats up as 3 banks launch new products
Fierce competition in deposit offerings seems likely to resume after three banks yesterday launched fixed-deposit products with high interest rates.
Thanachart Bank launched a short-term deposit account. The minimum period is seven days, which attracts 2-per-cent interest per annum, and the maximum terms is two months at 2.1 per cent.
The bank is also offering a 14-day fixed deposit at 2 per cent per annum and a one-month fixed account at 2.05 per cent. A minimum investment of Bt10 million is required.
Executive vice president Praphan Anupongongarch said the bank was aggressively focusing on short-terms deposit in order to acquire high-net-worth investors who want to a high rate of return for a short savings period, as well as on enterprises that require a financial tool for managing capital liquidity.
He said the launch of short-term deposits would serve clients’ changing investment model, as bills of exchange will be less interesting after banks have to pay surcharges on such instruments to the Deposit Protection Agency.
Meanwhile, Siam Commercial Bank has launched the "SCB More & Even More" 13-month fixed-deposit account, featuring interest as high as 13 per cent at the end of the term.
Interest will be paid every three months, as follows: 1.75 per cent per annum for the first three months; 2 per cent for months four to six; 3 per cent for months seven to nine; and 4 per cent for months 10 to 12. Interest at 13 per cent will then be paid for the 13th month.
The product will pay an average of 3.48 per cent per annum overall the whole deposit term.
Interest gained will be transferred to an SCB current or savings account under the same depositor’s name. Customers can make withdrawals before deposit maturity and earn interest at the rate effective at the time of withdrawal.
The minimum deposit for opening an account is Bt50,000, with the maximum set at Bt50 million. The minimum amount for further deposits is Bt1,000 for an unlimited number of transactions. The offer runs until May 31.
The third institution making an announcement yesterday was CIMB Thai Bank, which is promoting saving deposits through a new product attracting an annual rate of 3.5 per cent. The product will be sold at the "Money Expo 2012", which begins this Thursday.
President and CEO Subhak Siwaraksa said depositors could open account with a minimum of Bt50,000, but not more than Bt500,000.
Customers interested in signing up are required to show a national ID card to receive a coupon that reserves the right to open an account. Coupons will be available for 1,500 people per day at the fair.
Customers who have coupons can then open an account at CIMB Thai Bank’s branches nationwide from May 17 to June 15.
The bank will also waive the |normal Bt100 fee for depositors applying for an ATM card. The annual fee will also be reduced from Bt200 to Bt100 for opening the account.
