No more cease-fire: Deposit war rages on again among Thailand banks

They all desire to woo funding.

Thailand banks are resuming their deposit war to attract funding in anticipation of public and private investments later this year.

According to a research note from Maybank Kim Eng, the policy interest rate is expected to rise in the middle of next year from 2 percent at present and banks are highly likely to pass it on.

The report noted that this is amid tremendous demand for investment capital next year.

Further, it said banks will typically nudge up their interest rates by 50-75bps for every 100bps increase in benchmark rate.

Meanwhile, the report also noted special fixed deposits from commercial and state banks.

Here's more from Maybank Kim Eng:

BAY steps up eight-month fixed deposit account offering an interest rate payable on a monthly basis, averaging 2.7% pa.

SCB steps up 15-month fixed deposit account offering an interest rate payable on a monthly basis, averaging 2.8% pa.

KTB offers a nine-month account paying 2.7% pa interest paid monthly for internet customers and 2.6% for those enrolling at bank branches.

BBL offers two options for fixed deposit accounts. The first one is a four-month account that yields 2% pa. The other is an 11-month account offering 2.8% pa.

GH Bank, the state bank, launched a Special Savings Plus eight-month deposit account with a rate of 2.625% pa.