Savings products that make life easier for home-buyers

Siam City Bank recently launched a savings product for people thinking of buying a home. Customers

saving at least Bt5,000 a month for

12 or 18 months will get 0.5-per-cent cash back and will not need to

pay the loan and appraisal fees if

their application is approved.

The new account was designed under the concept of "Happy Home Happy Saver", president Chaiwat Utaiwan said last week.

The unique feature is that it is a hybrid savings and lending product, suitable for those saving up for the deposit on a home.

Savers can choose to deposit at least Bt5,000 a month for 12 or 18 months and receive interest of 2.375 or 2.625 per cent, respectively. After the home loan is approved, the customer will get benefits including receiving cash back for 0.5 per cent of the deposit - but not more than Bt600,000 - and a waiver of fees amounting to Bt2,500.

The benefits will be offered to customers opening an account before June 30, 2009 and expire one year after the savings account deal is completed.

Siam City Bank expects this package to bring in good-credit

customers for both savings and lending products. It targets Bt1

billion of deposits and 4,500

in loans from the promotion.

The Government Housing Bank (GH Bank) and Land and Houses Bank (LH Bank) also provide a similar package, but without a waiver of fees.

GH Bank offers an interest rate of 3.5 per cent for a two-year fixed-deposit account with monthly deposits of Bt1,000 up to Bt25,000. After two years, customers will easily get a loan at 90-100 per cent of the assessed value as well as a mortgage rate at the minimum retail rate minus 0.25 percentage point.

If customers fail to avail of this benefit within two years, they need to continue the monthly savings or the benefit will expire.

LH Bank allow buyers of Land and Houses' projects who have a condominium-purchasing confirmation document to save money for the down payment. By stashing Bt50,000-Bt70,000 a month in a six-month time deposit, they can earn 2.25 per cent.

The campaign runs until October.