SCIB banks on savings deposits

The savings and fixed-deposit ratio at the mid-sized bank stands at 30:70. It aims to boost its savings portion by 3-4 per cent.

With a large fixed-deposit base, the bank carries a higher cost of funding than big banks. The cost of funds at smaller banks averages 3 per cent while large banks pay less than 2 per cent.

To restructure its deposit base, SCIB will relaunch its SCIB Buffet Savings Account, introduced last year. It offers an annual interest rate of 1 per cent, available from today until December 31.

The bank also seeks to raise new deposits under the scheme by Bt6 billion for the year. This should increase its savings ratio to 33 to 34 per cent by the end of the year.

The bank expects the scheme will help lower the cost of funds from 3 per cent to 2.5 per cent by the end of this year, Chaiwat said.

SCIB is also introducing a four-month fixed account offering a 3-per-cent interest rate. This package will be available from February 25. Customers need to deposit at least Bt5,000.

 Under its promotion, customers can join its quarterly lucky draw, which offers a gold bar to winners.

Several banks have also introduced similar deposits, including Bangkok Bank and Bank of Ayudhya, each offering 3-per-cent interest rates. But their minimum deposits are Bt500,000 and Bt50,000 respectively.

Krung Thai Bank recently launched its "Ang Pao" product offering 3 per cent for a four-month deposit.

Siam Commercial Bank has also launched its Combo Set that offers 2.7 per cent for a 3-month deposit and 2.4 per cent for a 12-month deposit.

The country's policy signal rate may increase due to internal factors such as rising inflation, Chaiwat said.

Somruedi Banchongduang

The Nation