The state-run Government Savings Bank (GSB) has launched two new savings deposit packages, with the aim of reviving public sentiment regarding savings, which has been affected by the Covid-19 pandemic, said president Vitai Ratanakorn.
The first package offers a savings period of seven years with an annual step-up interest rate or an average rate of 3.21%. The minimum deposit is 1,000 baht with a maximum of 100,000 baht.
GSB has limited the total amount of savings under the package at no more than 5 billion baht.
The second package offers a savings period of 13 months with an annual step-up interest rate or an average rate of 1.15%. The minimum savings is 1,000 baht with no maximum savings limit.
Mr Vitai added people's savings have declined over the past two years as Thais have had to access their savings for expenditure during the recent economic difficulties.
He said that the better economic outlook next year would be a key factor to support the savings packages.
He also expected a significant drop in the rate of inflation next year. The persistently high inflation, driven by high energy prices, has affected savings, he said.
The Fiscal Policy Office last week predicted higher economic growth of 3.8% next year, mainly driven by an increase in foreign tourist arrivals.
The agency downgraded its 2022 economic growth forecast to 3.4% from the 3.5% projection it made in July.
Mr Vitai said GSB has tried to keep its lending interest rates steady for as long as possible, with the aim of mitigating the impact of the upward trend in interest rates on its customers.
GSB currently has around 23 million savings accounts and around six million borrowing accounts.
Last year the bank had savings of 2.57 trillion baht, up from 2.49 trillion baht in 2020 and 2.41 trillion baht in 2019.
Its net interest margin stood at 2.14% last year, 2.05% in 2020 and 2.23% in 2019.
