UOB offers 5% for fixed deposits of 3 years

Customers must open the account before August 15. Interest will be paid monthly and the minimum deposit amount is Bt1 million, with a maxi¬mum of Bt10 million.

Thanachai Thanachaiary, the bank's senior executive vice president, said all new savers and existing customers whose deposit accounts are due for renewal could take advantage of the new offer. He expects the scheme to bring in deposits of about Bt2 billion.

The UOB package comes amid fierce competition among commercial banks with the Deposit Insurance Protection Act set to be implemented on Monday. The bank wants to diversify more of its deposit products to longterm ones.

Thanachai said the interest rate would attract depositors when they compare it with deposit products offered by other banks.

The bank expects that market interest rates will not swing sig¬nificantly from current levels because of the decline in oil prices.

In addition, during the Mother's Day month, the bank is launching monthlyinstalment, twoyear deposits. Investors will be additionally offered 24hour accident insurance. The coverage would be double the outstanding amount to be deposited. Thus, the coverage will be lowered every month.

For example, in the case of a customer who has undertaken to deposit Bt5,000 every month for 24 months, after say 20 instal¬ments the insurance coverage would be Bt40,000, or double the outstanding instalments of Bt20,000. The maximum cover¬age is Bt1.2 million.

The minimum monthly instal¬ment for the 24month deposit is Bt5,000, and it offers interest of 3.5 to 3.75 per cent per annum.

Parents who wish to plant the savings habit in their children can open a 24month taxfree deposit for their kids. They will obtain a special stationery set.

However, they must deposit at least Bt3,000 every month for 24 continuous months for a taxfree 3.5percent deposit rate per annum.

Thanachai said the bank had set its total deposit target at Bt35 billion this year. So far, it has achieved half the target. The deposit target would help the bank reach its loantodeposit ratio of 85 to 90 per cent, com¬pared to the current level of 95 per cent.

The bank's deposits dropped by about 6 to 7 per cent in the first half compared to the same peri¬od last year, whereas loans have seen 6percent growth.

Thanachai emphasised the bank's strength, reflected in its AA+ credit rating and its 14.5percent capital adequacy ratio.

UOB is launching a promotion for creditcard holders from August to October with total rewards worth Bt3 million.

Cardholders will get 111 UOB reward points per month for every Bt5,000 they spend through all types of credit cards.

Those who win the first prize will get 1,500,000 points, which can be used for a sevenday London package tour, which includes two firstclass return air tickets and six nights in a fivestar hotel.

The second prize offers 10 rewards of 500,000 points, which can be exchanged for two roundtrip air tickets to Australia and a threenight stay in a fivestar hotel.

Cardholders who win the third prize will get 100 rewards of 50,000 points, which can be exchanged for a gift voucher worth Bt4,500.