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Published on January 9, 2008

President Kannikar Chali-taporn yesterday announced the launch of a new deposit

package with interest rates that are half-a-percentage-point higher than those at other large banks.

SCB's new package is called the Combo Set, including fixed three- and 12-month deposit accounts giving interest of 2.7 per cent and 2.4 per cent per year, respectively.

Customers must open both three- and 12-month fixed-deposit accounts and make equal initial deposits of not less than Bt50,000 into each account. Second and later deposits must not be less than Bt10,000 per account.

The campaign runs until the end of next month.

"We plan to raise our deposits higher than last year, in line with our loan-growth target," she said.

"Therefore, the bank has speeded up its deposit-rate increase rather than lifting lending rates."

SCB's lending rates are ex-pected to rise around mid-year, so its spread between deposit and lending rates will be narrower than last year, but the difference will not be significant, Kannikar said.

She said it was possible the Bank of Thailand's policy interest rate would gradually increase in line with the coun-try's economic recovery but that any change would not be significant.

Several banks have increased their deposit rates and launched new deposit campaigns so far this year. Krung Thai Bank has offered new short-term fixed-deposit packages for seven and 14 days, with interest of 1.75-2 per cent and 1.75-2.25 per cent, respectively. The products are aimed at institutional savers and have a minimum deposit requirement of Bt50 million.

TMB Bank has also launched a new deposit campaign called Buddy Time. Its fixed nine- and 24-month accounts are for large customers and offer rates of 2.9 per cent and 3.5 per cent, respectively.

Moreover, the bank is this year offering interest payments for some types of fixed deposits that earlier did not earn interest.

Somruedi Banchongduang

 The Nation