Bankers estimate that interest rates will drop by a further 50-100 basis points this year, following the reductions of 25-50 basis points made early in the year.

The recommended minimum maturity for fixed-deposit accounts is 12 months, depending on the needs and lifestyle of each saver.

For 24-month fixed deposits, Kasikornbank has the Taweesup Special Fixed Deposits package, which offers a 12-month fixed-deposit rate plus 75 basis points. When depositors complete their deposit terms, they receive an additional bonus of 25 basis points on the total return.

Moreover, interest income is exempted from the 15-per-cent withholding tax.

Based on KBank's 12-month fixed rate of between 3.75 to 4.50 per cent depending on the amount held, depositors who put money in Taweesup Special Fixed Deposits will obtain about 4.75-5.5 per cent per annum.

Under the terms of the account, customers have to save a fixed monthly amount over the entire 24 months. The monthly deposit must be between Bt3,000 and Bt25,000.

If a depositor fails to meet the account conditions - for example if funds are withdrawn prior to the due date, a monthly deposit is not made, or is made late - interest is calculated according to standard bank interest rates, and interest income will not be exempted from withholding tax.

Siam Commercial Bank has its own special package for time-deposit accounts: the Education Bonus 36 Months. The bank pays additional interest of 0.5 per cent on top of its 12-month fixed-deposit rate. SCB's 12-month fixed rates range from 3.75 to 4.5 per cent, depending on the deposit amount.

Depositors also have a twice-yearly chance to win an educational scholarship. The product is, therefore, suited both to parents who want to save for their children's education and general depositors who want to obtain a scholarship.

SCB plans to conduct lucky draws for 400 scholarships, worth Bt5,000 each.

Account-holders must deposit the same monthly sum for 36 months. The minimum amount is Bt1,000 per month, rising in increments of Bt500 to the maximum of Bt15,000. If holders fail to keep up their regular deposits, they will not receive the special interest rate.

Meanwhile, Bank of Ayudhya is targeting teenage customers by offering the Krungsri Teen Plus fixed deposit. The product's maturity is set at five years, and eligible customers must be between seven and 19 years of age.

Interest offered is the bank's 12-month fixed rate - currently 3.75 to 4.5 per cent - plus 25 basis points. The minimum regular monthly deposit is Bt1,000 and the maximum Bt10,000.

TMB Bank is offering the TMB Super Times Deposit with special rates and conditions. This account is focused on customers within a family, as long as they have the same surname.

Fixed-deposit accounts are available for terms of three to 36 months. The minimum amount for opening the first account is Bt3 million, with a minimum of Bt1 million required for the second and any following accounts under TMB's product.

Interest is between 3.25 and 4.5 per cent, depending on the deposit amount and customer type. Interest on 24- and 36-month deposits is paid every three months.

Somruedi Banchongduang

The Nation