Thai banks raise policy rates to woo depositors with digital deals

[snoop1130]

 

Following the Bank of Thailand‘s decision to hike its policy rate by 0.25 percentage points, banks are now increasing both their loan and deposit rates. In a bid to attract depositors, special rates are being offered on digital savings products.

 

Siam Commercial Bank (SCB), the country’s fourth-largest lender by total assets, has acted promptly to the central bank’s policy rate rise by lifting its prime loan rate by 0.25 percentage points. The change is effective from today.

 

All types of loan rates have also been increased, including the minimum retail rate (MRR) which now stands at 7.3% annually, the minimum loan rate (MLR) at 7.05% annually, and the minimum overdraft rate (MOR) at 7.575%.

 

According to SCB’s Chief Executive Kris Chantanotoke, these increased loan rates are indicative of higher financial costs and are consistent with the rising rates across the industry. SCB has also increased deposit rates by a maximum of 0.3%.

 

The bank’s business strategy, titled “digital bank with a human touch,” has led to a 0.1-0.3% hike in digital saving rates to attract depositors.

 

Last Wednesday, the Bank of Thailand’s Monetary Policy Committee (MPC) increased its benchmark interest rate by 0.25 percentage points to 2.5%, the most substantial level in ten years. However, economists predict this to be the conclusion of the rate hike cycle, as the MPC plans to maintain the policy rate at the existing level for a considerable duration.

 

By Atima Homtientong

Caption: Picture courtesy of Bangkok Post

 

Full story: The Thaiger 2023-10-03

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[brianthainess]

You can take the SCB and stick it where the sun don't shine, even their staff couldn't log into my account using my laptop in their bank.

[Celsius]

I think it is a great business model.

 

Transfer money, get taxed 15% on the gross amount and get 2% interest (if you are lucky).

 

 

 

 

 

 

[1FinickyOne]

11 minutes ago, Celsius said:

Transfer money, get taxed 15% on the gross amount

That is the first I am hearing about that?? Has it happened to anyone yet? 

[Celsius]

Just now, 1FinickyOne said:

That is the first I am hearing about that?? Has it happened to anyone yet? 

 

No, but it may next year.

[itsari]

17 hours ago, snoop1130 said:

 

Following the Bank of Thailand‘s decision to hike its policy rate by 0.25 percentage points, banks are now increasing both their loan and deposit rates. In a bid to attract depositors, special rates are being offered on digital savings products.

 

Siam Commercial Bank (SCB), the country’s fourth-largest lender by total assets, has acted promptly to the central bank’s policy rate rise by lifting its prime loan rate by 0.25 percentage points. The change is effective from today.

 

All types of loan rates have also been increased, including the minimum retail rate (MRR) which now stands at 7.3% annually, the minimum loan rate (MLR) at 7.05% annually, and the minimum overdraft rate (MOR) at 7.575%.

 

According to SCB’s Chief Executive Kris Chantanotoke, these increased loan rates are indicative of higher financial costs and are consistent with the rising rates across the industry. SCB has also increased deposit rates by a maximum of 0.3%.

 

The bank’s business strategy, titled “digital bank with a human touch,” has led to a 0.1-0.3% hike in digital saving rates to attract depositors.

 

Last Wednesday, the Bank of Thailand’s Monetary Policy Committee (MPC) increased its benchmark interest rate by 0.25 percentage points to 2.5%, the most substantial level in ten years. However, economists predict this to be the conclusion of the rate hike cycle, as the MPC plans to maintain the policy rate at the existing level for a considerable duration.

 

By Atima Homtientong

Caption: Picture courtesy of Bangkok Post

 

Full story: The Thaiger 2023-10-03

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

They need to curb the outflow of baht overseas  to gain the access of higher interest available .

Interest paid by banks on deposits in Thailand can not be sustainable in a free market .

 

 

[Felt 35]

29 minutes ago, 1FinickyOne said:

That is the first I am hearing about that?? Has it happened to anyone yet? 

Yes, and I think for most of they who already are a resident for tax purposes. Now I aware the masses are not affected yet but following the new rules coming next year I have problems to se how it can be different for anyone else as long as money is remitted / brought into Thailand. 

Felt 

[Henryford]

When Thai banks quote these rates like the MOR 7.575% are these APR (Annualised Percentage Rate) or a flat rate. When i see many adverts offering credit they seem to quote flat rates, which are roughly half the APR.

[1FinickyOne]

1 hour ago, Celsius said:

 

No, but it may next year.

If I go out of the house, I may get hit by lightning too...  or not. 

[No Forwarding Address]

1 hour ago, brianthainess said:

You can take the SCB and stick it where the sun don't shine, even their staff couldn't log into my account using my laptop in their bank.

That would be because SCB just initiated Mobile Banking on 15 August 2023, the computer based Easy Net does not work any longer, you need to create a new account on a cell phone.   I tried, but am not able to make it happen, and am out of country at the moment.  Called the branch and was told they could not resurrect my Easy Net account to check it on line with my computer.  Boggles the mind

[brianthainess]

18 minutes ago, No Forwarding Address said:

That would be because SCB just initiated Mobile Banking on 15 August 2023, the computer based Easy Net does not work any longer, you need to create a new account on a cell phone.   I tried, but am not able to make it happen, and am out of country at the moment.  Called the branch and was told they could not resurrect my Easy Net account to check it on line with my computer.  Boggles the mind

The staff got so irritated at their own so called Easy Net site, they said we'll just give you your money now. so I took it out walked next door to the yellow bank and put it there. I get less interest but I have a book and ATM card can take money out, set up direct debits. 

I am not going out to buy an expensive phone<, I'm old school and only use my phone for phone calls, I don't trust phone apps especially in Thailand I always end up getting spam calls, I tried wise and got spam. 

[RubbaJohnny]

Woo is the key word

[samtam]

The level of knowledge and service at Thai banks is abominable. I received an SMS to go into U*B and register my banking app for facial recognition, and to bring my passport to facilitate this. Initially they said my passport did not have a chip, so it could not be done. The passport was issued last year, and had the chip icon. I Googled and explained that to them. 4 staff faffed around with the passport being "scanned" to find the readable chip. 45 minutes later this was achieved. In the meantime I was told utter nonsense by staff who did not know what they were doing, and who became more hostile as the proceedings unfolded. It boggles the mind how an institution can introduce a new system and not train their staff on how to make it work. It boggles the mind how a so-called service industry cannot train their staff to serve their customers. Whilst all of this was going on, the clerk at the desk left to consult another colleague, (I was the only person in the branch). In doing this she left her computer (tilted towards me), with some customer's details private information completely visible to me. It boggles the mind that data and security and customer privacy are not paramount in a bank's training of its staff.