GSB launches generous savings accounts to ease Thais’ retirement fears
The Government Savings Bank (GSB) marked World Savings Day by opening two high-interest saving schemes to help Thais through the cost-of-living crisis on Monday.
Vitai Ratanakorn, president and CEO of GSB, oversaw a ceremony to launch the two new proactive saving schemes.
The first scheme, for medium-term savings, offers annual interest of 4.50 per cent tax-free on money deposited for at least 13 months.
The second scheme, for long-term savings, offers 3.21 per cent annual interest tax-free on money deposited for seven years.
Vitai said that while the government is urging people to spend to boost the economy through domestic consumption, it is also important to set aside money for the long term.
"It is our responsibility to educate people how to balance their spending and savings," GSB’s chief said.
He also vowed to raise interest on savings if the Bank of Thailand decides to hike the policy rate at its next meeting in response to similar moves by the US Federal Reserve. However, GSB loan rates would be kept low for as long as possible.
Thai household savings fell during the Covid-19 pandemic, but with the economy now showing signs of recovery it’s time to encourage people to start saving again, he said.
The new GSB strategy will respond to Thailand’s ageing society by focusing on medium- and long-term saving for retirement.
"These two new savings schemes currently offer the highest interest rate on bank savings accounts. We developed these savings plans not for the benefit of banks but for the benefit of all Thais," Vitai said.
He added that the new schemes may reduce GSB’s margins but its finances and liquidity would remain strong.
GSB has also launched a new app called Coach Aom, which aims to help people on low income understand basic money management. Users will get saving plans tailored to their circumstances to ensure they have sufficient retirement savings.
The simple functions and features of the user-friendly app were developed in collaboration with Chulalongkorn University's finance and accountancy faculty.
Coach Aom is available on Android devices, with an iOS version to be released soon.
