Economy Rapid Growth in Foreign Currency Deposit Accounts Driven by Young Investors

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Foreign Currency Deposit (FCD) accounts have seen significant growth, largely fuelled by younger investors seeking higher returns. As of April 2025, FCD accounts in Thailand numbered 4.33 million, a remarkable 71.6% increase from the start of the year and 433% from the previous year, according to Kasikorn Research Center (K-Research).

 

The total deposits in these accounts reached 25.5 billion baht, showing a growth of 4.5% year-to-date and 15.5% year-on-year. Individuals accounted for most of this surge, with 4.25 million accounts, experiencing a 73.6% increase year-to-date and 467% year-on-year. The deposits from individual account holders amounted to 2.46 billion baht, representing a year-on-year rise of 105%.

 

Kanjana Chockpisansin, head of banking and financial sector research at K-Research, noted the steady increase in demand for FCD accounts over the past decade, with significant growth in the last three years. This trend is attributed to increased interest from depositors and proactive marketing by banks offering these accounts as alternatives for better returns.

 

Despite the appeal of higher interest rates from FCD accounts, Chockpisansin cautioned depositors about foreign exchange risks in the current volatile market.

 

Siam Commercial Bank (SCB) anticipates continued double-digit growth in new FCD account openings. Patrick Poulier, SCB's first executive vice-president and head of financial markets, highlighted that younger, tech-savvy individuals are particularly drawn to these accounts for superior returns. SCB has facilitated access to FCDs through its mobile app, SCB Easy, under the brand e-FCD, attracting considerable interest from this demographic.

 

Poulier reported that SCB has seen annual FCD account growth rates between 50-100%, depending on the account type, and aims for continued robust growth this year. He also noted a broader trend among Thai investors towards international investment opportunities, influenced by declining domestic interest rates.

 

The SCB Economic Intelligence Center forecasts two policy rate cuts by the Bank of Thailand this year, potentially lowering rates from 1.75% to 1.25%, further encouraging the shift towards FCD accounts.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-20