Step Interest rates attractive

So which bank offers the most beneficial rate? We have calculate deposit return in each package with the same principal of Bt100,000 for your comparison as followings.

Bangkok Bank (BBL) offers 18-month term deposit with maximum deposit rate at 1.5 per cent, while Bank of Ayudhya (BAY) has two choices of nine-month term deposit and 15-month term deposit with maximum interest rate at 1.5 per cent and 2.25 per cent, respectively. Siam City Bank (SCIB) offers maximum rate at 1.6 per cent for eight-month term deposit and 2.25 per cent for 15month term deposit.

Banks requires minimum deposit at Bt50,000. Besides the interest would be deducted by tax for 15 per cent before being transferred to depositor's saving account.

Breaking into details, BBL 18-montht fixed deposit offers 1.0 per cent per annum for the first six months, then 1.25 per cent in the next six months, and 1.5 per cent in the last six months.

In case you deposits Bt100,000, you will get interest after the 15percent tax deduction at Bt1,593.75 for the whole period.

If depositors withdraw money before three month, they will not receive interest. But if they withdraw money after three months but before the end of maturity, they will receive interest rate as normal rates. However they are required to withdraw the whole amount of deposit from the package.

BAY nine-month fixed deposit offers 0.75 per cent in the first three months, 1.0 per cent in the next three months and 1.5 per cent in the last three months. 

BAY 15-month fixed deposit offers 0.75 per cent in the first three months, 1.0 per cent in the next three months, and then it offers 1.25 per cent in the seventh to ninth month, 1.75 per cent in the next three months, and 2.25 per cent in the last three months.

If you deposit Bt100,000 in these two accounts, after maturity, you will receive total interest after 15-percent tax deduction at Bt690.62 for ninemonth term and Bt1,487.49 for 15-month term.

In case of withdrawal before maturity, if withdrawal during the first three months, the paid interest would be retrieved and depositors would receive the regular saving rate in stead.

But if the withdrawal is done after three months, they will receive the interest rate as usual.

SCIB eight-month fixed deposit offers return at one per cent per annum in the first five months, then 1.6 per cent afterward.

SCIB 15-month fixed deposit offers 1.25 percent in the first ten months, then 2.25 per cent afterward.

If depositing for Bt100,000, you will receive total interest after tax at Bt694.17 for eight-month term and Bt1,682.29 for 15-month term.

If you withdraw the money before the end of maturity, the condition is the same as BBL.

Most banks currently offer the regular fixed deposit for three-month term and six-month term at 0.75 per cent, and 1.0 per cent for 12month term for the deposit of less than Bt3 million.

If you deposit the same amount of Bt100,000 in three-month fixed account, according to the current interest rate, you will receive interest at Bt500 after eight months, Bt562.5 after nine months, and Bt937.5 after 15 months.

Or if you deposit in 12-month term deposit and then transfer to three-month or six-month term deposit, you will receive interest at Bt1,187.5 after 15 months and Bt1,375 after 18 months.

Therefore, these special fixed accounts are interesting as long as the interest rate does not increase significantly.

Banks have offered these stepped packages could be a result from that the government would issue savings bonds with 35 per cent of coupon rates in July and may affect banks' deposit to flow out.

These special step rate accounts would be available until July 20 for BBL, July 27 for SCIB, and July 31 for BAY.

On June 22, SCB announced to classify its threemonth and sixmonth term deposit rates as 0.65 per cent for the deposit of Bt3 million or over, and 0.85 per cent of the deposit less than Bt3million. Previously, it offers 0.75 per cent to all amounts of deposit.

While on June 25, KTB increased its 24month and 36month fixed deposit to stand at 1.5 per cent and 1.75 per cent, respectively, equal to the rates of SCB and Kasikornbank.