E-savings gain appeal as interest rates edge lower

Banks are creating digital products that target younger Thais, writes Somruedi Banchongduang

- Somruedi Banchongduang

Some younger Thais start saving using digital accounts.

As interest rates continue to decline, e-savings deposit accounts are emerging as an attractive option for younger Thais looking to take their first steps towards saving.

Banks are rolling out digital savings products with enhanced features to attract a new generation of depositors seeking to build their financial stability over the long term.

Banks have continued to cut interest rates for both lending and deposit products in line with the central bank's policy rate reductions.

The Bank of Thailand's Monetary Policy Committee (MPC) began its current accommodative monetary policy cycle in October 2024 and has reduced the policy rate by a cumulative 1.25 percentage points to 1.25% during that period.

Central bank governor Vitai Ratanakorn said the MPC still has room to lower rates to support the economy amid a slower pace of growth. However, he also acknowledged the limits of monetary policy, warning that prolonged low interest rates could have negative implications for depositors and the country's overall savings.

Following the policy rate cuts, commercial banks started trimming interest rates on e-savings products late last year.