State banks offer higher deposit rates at Money Expo 2023

Image courtesy of Bangkok Post

State-owned banks in the country are eager to offer customers higher deposit rates, with one scheme providing up to 17%. At the 23rd Money Expo 2023, Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC) unveiled campaigns to attract patrons to open short-term deposits for three-to-five months by presenting step-up interest rates.

Monetary Policy Committee members unanimously agreed on a policy rate increase to 1.75%, up from 1.50%, effective immediately, as the economy is expanding and exports indicate signs of recovery following a contraction in the final quarter of 2022.

Vitai Ratanakorn, chief executive and president of GSB revealed that the bank introduced a special deposit product available for 111 days, offering step-up interest rates with the highest rate peaking at 16.99%. On average, this campaign’s interest rate is equivalent to a fixed deposit rate of 4.23% per year.

The minimum threshold required to open an account is 10,000 baht, while the campaign’s maximum amount is 500,000 baht.

Regarding loan products, GSB plans to become a green bank by offering loans for solar rooftop installations and electric or hybrid vehicle purchases. Furthermore, the bank launched the “GSB Green Biz” loan programme to support entrepreneurs investing in environmentally-friendly businesses. This loan has an annual interest rate of 3.99%, set for the initial two years, with a maximum repayment term of ten years.

In parallel, Chatchai Sirilai, BAAC managing director, disclosed the “Exclusive 58” campaign which provides a step-up interest rate of up to 15.80% per year, averaging 3.50% annually, catering to deposits of 50,000-500,000 baht. These deposits must be retained for 158 days.

BAAC plans to concentrate further on green credit to aid the development of organic farming, food safety projects, alternative energy, and conservation of the environment and natural resources.

In related news, the Deposit Protection Agency released a statement announcing total deposits valued at 20 trillion baht under protection. As per the legal stipulation, should a member financial institution’s banking licence be revoked, depositors are protected for up to 1 million baht per depositor per institution, reports Bangkok Post.

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