Banks offer ways to invest in a happy Mother's Day

Bankers suggest deposits and life insurance as simple ways to create wealth and protect the health of your mother.

Kanchana Rojvatunyu, executive vice president and head of the retail marketing group at TMB Bank, said many customers who are first-jobbers had consulted the bank about a financial plan for them and their mothers.

For these people, the bank suggests its Savings Care product, because it requires a deposit of only Bt5,000 but also provides life-insurance coverage of 20 times the amount of the deposit.

A Savings Care account could be a gift from someone who has little money to spare but wants life protection for his or her mother, she said.

For better-off workers, the bank suggests the TMB Senior Account, which offers more returns and privileges to customers aged 55 years and over who are preparing for retirement.

The initial deposit required is Bt500,000, and the account returns 0.25 percentage point over the regular savings rate. The interest is computed every day and paid twice a year, in June and December.

Praphan Anupongongarch, executive vice president of Thanachart Bank, said customers who want a financial plan for their mothers should allocate three funds. The first should be life and health insurance, the second a mutual fund and/or fixed deposit, and the third fund for day-to-day spending.

A deposit account with life insurance is a good investment choice for mothers, he added.

Thanachart has launched a fixed-deposit product to attract customers looking for a gift for this special day, which offers 3.4-per-cent interest. For Mother’s Day, the bank is offering jasmine-scented debit cards to customers who open savings or fixed-deposit accounts.

Umaporn Charoenying, first vice president of the consumer financial advisory department at Kasikornbank, said that apart from deposits with life insurance, children could buy gold funds as gifts for their mothers because the minimum required investment was just Bt5,000. A gold fund is a long-term investment, appropriate for people nearing old age.

For children who want to open deposit accounts for their mothers, KBank has introduced a 30-month product called Happy Senior Fixed Deposit that caters to depositors aged 55 and above. The monthly interest will be automatically transferred to a linked savings or current account. Moreover, depositors can enjoy tax-free interest payments.

This product offers personal accident insurance equal to the outstanding balance or up to Bt1 million, plus bone-fracture coverage of up to Bt10,000 and accident-related medical expenses of up to Bt5,000 per accident.