Outstanding deals at the fair

Kasikornbank offers the most attractive housing-loan packages for consumers with various expectations on interest rates, whether they are seeking a new home loan or to refinance one.

Six packages with zero interest in the first six months are on offer, of which three are for those who want fixed lending rates for between one and three years as they expect higher interest rates after public and private investment accelerates.

After the fixed-rate year, they will be changed 0.25 per cent below the minimum lending rate (MLR), which is relatively low compared with other banks. MLR is now 6.85 per cent.

The first and second packages are likely to benefit borrowers. In the first, debtors are charged a 3-per-cent lending rate from the seventh through to the 12th month and MLR minus 0.25 per cent throughout the remaining term of the loan. In the second, they pay 4.75 per cent from the seventh through to the 24th month and MLR minus 0.25 per cent for the rest.

Another three packages are on offer for those who predict that the interest rate could fall and want floating interest rates. The lucky debtors could get zero interest rates for the first 12 months or free instalments for the first six months.

Siam City Bank also has a package for new loans and refinance with zero interest in the first nine months and MLR minus 1 per cent for the remainder. Its MLR is currently 7.125 per cent. This would benefit debtors in the short run and the very long haul, although their burden would be higher when interest rates are rising.

Another package offers a two-year fixed lending rate and MLR-1 per cent for the rest of the maturity. This would be good for those who are concerned about rising rates but want long-term benefits.

TMB Bank also proposes attractive home-loan packages with zero interest for the first through to the third month, 2.99 per cent in the fourth until the 12th month, 4.5 per cent in the second year and MLR, which is currently at 7.12 per cent minus 1 per cent for the rest. However, the package is bundled with ATM, credit cards and loan insurance.

Credit cards

Krungthai Card (KTC) appears to be the most aggressive among its credit-card industry peers, offering special prices for package tours and air tickets exclusively for its cardholders.

All travel agents at Money Expo 2008 waive the 3-per-cent service charge for those who pay for air fares and package tours through KTC cards.

Some travel agents give up to 10-per-cent discount for Thai Airways' overseas tickets. Cardholders can use KTC's points in exchange for zero per cent for three months when buying package tours.

KTC's cardholders can use 15,000 miles accumulated in Royal Orchid Plus or 4,800 miles plus Bt5,000 to buy a three-day, two-night package tour to Krabi, Chiang Mai, Chiang Rai or Phuket. They can redeem 35,000 miles or 13,000 miles plus Bt9,000 for a three-day, two-night package tour.

Each KTC Titanium or Platinum point can convert to a mile for Royal Orchid Plus while every five points on KTC's other cards can convert to a mile.

Personal Loans

  Kasikornbank is promoting its K-Express Personal Loan. The credit line is for between Bt10,000 to Bt500,000 with lending rates at around 11.8-15.4 per cent depending on the amount.

The loans' maturity also various between six and 48 months.

For customers who wish to borrow between Bt10,000 to Bt30,000, the lending rate is 1.29 per cent per month, or 15.48 per cent per annum, while borrowers of between Bt30,001 and Bt60,000 will be charged 1.19 per cent per month or 14.28 per cent per year. For credit line of Bt60,001 to Bt100,000, the lending rate is 1.09 per cent per month or 13.08 per year, while borrowers of Bt100,001 to Bt500,000 will be charged 0.99 per cent per month or 11.88 per cent per year.

However, the conditions are much tougher than other institutions - you must be 20 to 60 years of age and your net income must be no less than Bt10,000 per month. If you are employed, your work experience must be at least six months or if you are a business owner, your business must be at least two years old.

Deposit packages

The deposit package from BankThai called "Dok Bia Tan Jai", is an eight-month deposit package with a deposit rate of 3.25 per cent per annum. The minimum deposit amount is Bt100,000.

However, the most interesting part is that once customers deposit their money, the next day they get the total amount of interest they would normally get at the end of the eight months.

For example, if you deposit Bt100,000 cash today, the bank will transfer approximately Bt1,846 of interest into your account tomorrow. Customers can withdraw the interest as soon as it is in their account.

Life insurance

The doubling of the maximum tax allowance from life insurance purchases to Bt100,000, effective this tax year, has been a boon for the industry, which saw total premiums and first-year premiums grow by 14 and 4 per cent respectively this quarter, according to Sara Lamsam, president of Muang Thai Life Assurance and Thai Life Assurance Association.

With bank deposit rates so low, companies are churning out insurance-saving products. The most popular are ones having coverage periods of 10 and 20 years.

Ayudhya Allianz CP Life has introduced its new Tax Light 15-year coverage plan, which has internal rates of return that range from 4.47 per cent to 20.87 per cent, or total benefit returns of 750 per cent per policy claim.

If returns are what you look for, perhaps you should try Muang Thai's new Happy Tax policy, where total benefits for the duration of the contract can top 1,060 per cent, or so it says in its brochure. For Bt50,000 a year, policyholders will end up with a total of Bt530,000 after ten years, which includes a 100-per cent benefit every two years - not exactly inflation beating, but these policies are good additions to existing policies.

Mutual Funds

Yesterday there were many visitors to the asset-management booths. The four major players - Kasikorn Asset Management, TMB Asset Management, Finansa Wealth Management and Bualuang Asset Management - have set up shops at the smaller hall opposite the main Plenary Hall. 

With intense competition, not just among direct competitors but also against other similar financial products, the asset-management firms - besides coming up with more novel, timely and sometimes outright exotic funds, at least by Thai standards - have now resorted to attention-grabbing gifts. 

This year's offering has upped the ante with MP3 players, iPods and even digital watches from Bualuang Asset Management.

One of the most notable funds - though to be launched in 10 days' time - is the K-MENA by K-Asset. Wiwan Tharahirunchote, executive vice chairman, said that the fund will invest in a fund of funds - at least four - that will directly invest in Middle Eastern and North African equities, currently unavailable to Thai investors.

Geopolitical theme funds may sound enticing given the petro-dollars most of these companies seem to derive their income from, but remember too that an abundance of BRIC - Brazil, Russian, India and China - theme funds are now taking their toll, with NAVs diving.

TMB Asset Management has opened a booth solely devoted to its property fund - the Luxury Real Estate Investment Fund - which debuted earlier.