Thai banks promote fund products to bondholders

Thai Banks will promote deposit and fund products with attractive returns to holders of 10-year savings bonds worth Bt200 billion.

"We will look after this kind of customer because we believe they must look for new investment or deposit products that sustain their wealth," said Weidt Nuchjalearn, a senior executive vice president of Krungthai Bank.

After enjoying a yield of 6.1 percent, they are expected to reallocate their savings in products that give a good return.

KTB will adjust the terms of fixed deposits to offer the bondholders a "suit yourself" product with the goal of drawing at least Bt20 billion-Bt30 billion in new deposits from them.

Kris Chantanotoke, executive vice president for wealth management and bancassurance at Bank of Ayudhya, believes several banks are developing competitive products, either deposits or funds to appeal to those cashing in savings bonds.

Weidt of KTB said his bank was actively looking for customers with Bt1 million in deposits, and the 10-year government bond holders were targets.

Of the 15 million accounts at KTB, about 200,000 have balances of Bt1 million and up.

This kind of customer wants convenient services from banks, so KTB has trained relationship managers to serve them.