SCB takes on its competitors

Depositors will have to invest a minimum of Bt100,000 with a maximum of Bt10 million.

The new scheme is available till August 25.

Adisorn Sermchaiwong, an SCB executive vice president, said the bank had launched a new campaign of savings products.

"We need to maintain our customer base and satisfy them with a product that offers returns as much as the other banks do," said Adisorn.

Besides banks need to raise funds for lending as loans are likely to grow, and there is also a trend of interestrate hikes.

The loantodeposit ratio of SCB, including Bills of Exchange, is at over 90 per cent. The campaign is targeting depositors who have more than Bt1 million.

"If the interest rate is likely to be increased slightly, depositors should calculate the possible returns from longterm fixed deposits and the shortterm one, to find out which will benefit them the most. If the interest rate could go up, but not by much, depositors may allocate their money in both types of saving," said Adisorn.

Many banks have launched new savings products, offering different returns and over varying time.

Bangkok Bank offered a 3.8 per cent interest rate for a fivemonth fixed deposit with a minimum of Bt50,000 and a maximum of Bt5 million. Kasikornbank offered 4 per cent interest for a 10month deposit. Bank of Ayudhya offered 3.8 to 4 per cent for five months and 10 months respectively, while Siam City Bank offered 3.8 per cent for a fivemonth deposit with a minimum deposit of Bt10,000. TMB Bank offered 3.65 per cent for a fivemonth deposit.