HIGH-RETURN ACCOUNTS
GHB takes lead in trimming interest rates
The Government Housing Bank has emerged as the first bank to reduce interest on its three-month fixed-deposit accounts, by 50 basis points, indicating the likely end to the intense competition to attract deposits by offering relatively high returns.
The new rate, 4.50 per cent, will be effective from May 16, GHB president Khan Prachuabmoh said in a statement yesterday. "The last chance for our three-month time-deposit account customers to get 5-per-cent interest comes during the four-day Money Expo. The rate for such deposits will then go down, the only product for which the bank is cutting its rates," he said. The GHB is participating in Money Expo '06 from today until Sunday. According to the Bank of Thailand, the three-month fixed deposit interest rates offered by the country's fifth-largest bank are between 3.25 and 4.25 per cent, with Thanachart Bank giving the highest rates - between 4.75 and 5.125 per cent - for the same period. Banks in both the state and private sectors have over the past few months offered special interest rates to draw deposits, but bankers say the competition will begin to ease off this quarter. The GHB said separately it would offer an annual 6.50-per-cent interest to investors opening 24-month time-deposit accounts at Money Expo. Investors are required to put identical deposits of at least Bt1,000 but not exceeding Bt25,000 every month into the account over 25 months. They pay no capital gains tax on the investment. The bank will also prune its first-year floating rate by 25 basis points for those who apply for mortgage loans, refinancing, loans for repair and construction at Money Expo. The first-year floating rate for mortgage loans will be 1.75 per cent below the minimum retail rate, or 6 per cent. The GHB will lower its appraisal fee from Bt2,100 to Bt1,200 exclusively for applicants at the fair. Meanwhile, the Government Savings Bank (GSB) is making an aggressive move into the life assurance industry, yesterday launching products to woo savers. GSB senior executive vice-president Woravit Chailimpamontri said it was offering an opportunity for long-term savings coupled with life protection. The bank has actually had this type of product for nearly 70 years, but has not actively promoted them as life assurance products, he said. He said the GSB had life assurance premiums worth Bt70 billion last year, ranking among the top five in total premium receipts and with a market share of 5.1 per cent. The GSB hopes to build its market share to 10 per cent in the next three years, said Worawit. The bank also plans to sell new lottery savings certificates - or premium savings certificates (PSCs) - offering returns higher than before. The two lucky winners of the top prize will each receive Bt10 million. It hopes to raise Bt20 billion from lottery savings. Each PSC unit is worth Bt50, maturing in three years. The certificates will be available at Money Expo.
|
