Two banks effectively cut rates for high deposits

Both banks clearly decided to act ahead of the December 3 meeting of the Bank of Thailand's Monetary Policy Committee, at which the key policy rate is expected to be slashed.

Kasikornbank, the country's fourth-largest bank, announced on Saturday that the same interest rate would apply to depositors with more than Bt10 million in six- and 12-month month fixed deposit accounts as to those who deposit between Bt5 million and Bt10 million.

The interest rate for the bank's six- and 12-month fixed deposits is now 2.65 per cent and 2.85 per cent per annum, respectively. The minimum deposit is Bt5 million.

Previously, those who deposited Bt10 million in Kasikonbank's six- and 12-month fixed deposit accounts received annual interest of 2.75 per cent and 3 per cent, respectively.

Following the reclassification, those who deposit less than Bt5 million in six- and 12-month fixed deposit will get 2.5 per cent and 2.75 per cent per year, respectively.

Moreover, the bank's 24- and 36-month fixed-deposit accounts now offer a single rate of 3.5 per cent per annum, regardless of the amount. Previously, the bank paid 3.75 per cent for deposits of at least Bt10 million.

Since October 29, Siam Commercial Bank has set the interest rate for six- and 12- month fixed deposits at 2.5 per cent and 2.75 per cent, respectively - regardless of the amount.

Previously, the bank offered 2.75 per cent and 3 per cent for these accounts for deposits of at least Bt5 million.

SCB's 24- and 36-month term deposits both now offer 3.5 per cent. Earlier, the bank offered 3.75 per cent for deposits of more than Bt50 million.

SCB offers 3.2 per cent for new term deposits of four months, while Bangkok Bank offers a five-month-term deposit with 3.5 per cent per annum. Both require Bt50,000 to Bt10 million to be deposited until December 1.

The Monetary Policy Committee is expected to trim the policy rate by 25 to 50 basis points on December 3, from the present 3.75 per cent. Banks therefore need to prepare themselves a downtrend in interest rates, a banking source said.