Kbank Cuts Fixed Deposit Rates

Kbank cuts fixed deposit rates

BANGKOK: -- Kasikornbank (Kbank) has reduced its fixed-deposit rates for six- to 36-month accounts by 25-50 basis points, effective from yesterday.

The move is in line with the downward trend of both global interest rates and the country's policy rate. Last week, the Bank of Thailand reduced its one-day repurchase rate by around 25 basis points to 4.75 per cent. The US Federal Reserve's policy rate is currently at 5.25 per cent.

Kbank's six-month deposit rates now stand at 3.75 to 4.5 per cent. The bank's 12-month deposit rates decreased from 4-5 per cent to 3.75-4.5 per cent, and its rates for fixed deposits of 24 and 36 months were cut from 4.75 per cent to 4.25 per cent.

However, the downward adjustment by Kbank was not made across the board.

The bank has not changed its fixed rate for three-month deposits, which still attract annual interest of 3.2 to 4.25 per cent.

Kbank is keeping its savings rate unchanged at 0.75 per cent, while its lending rates have not been adjusted either. Its minimum lending rate, minimum overdraft rate and minimum retail rate stand at 7.75 per cent, 8 per cent and 8.25 per cent, respectively.

Kbank earlier reduced its fixed-deposit rates slightly, from January 8.

TMB Bank lowered its rates on January 16. Bangkok Bank and Siam Commercial Bank have also recently reduced their fixed rates for some deposit accounts.

-- The Nation 2007-01-23