Special savings products for elderly

Special savings products for elderly

The Government Savings Bank (GSB) has launched products tailored for people aged 60 or more, offering relatively high interest rates for savings and a low rate for borrowers.

GSB president Chatchai Payuhanaveechai said on Tuesday that the new products would provide financial support for the elderly as the country was turning into an ageing society.

A savings account for the elderly offers an annual 1% interest rate, compared with 0.5% for general customers.

Each client can have only one such account, which sets a minimum deposit at 100 baht and cap the outstanding balance at 1 million baht.

Another type of account offers progressive annual savings interest rates up to 24 months: 1% in the first six months, 1.5% between 7th and 12th months, 2% between 13th and 18th months and 3% for the remaining six months. The rate was 1.875% annually on average.

Similarly, each client can only have one such account. The minimum deposit is 10,000 baht and the balance is capped at 1 million baht.

For loans, clients aged 60-70 years can borrow up to 200,000 baht at 1% monthly interest rate. They are exempted from a life insurance premium normally required for such borrowings and Thai Credit Guarantee Corporation helps guarantee the loans in addition to typical individual guarantors.

The state bank also has a reverse mortgage product for the group, who can borrow up to 70% of appraised value of buildings with land and 60% for condominiums. The interest rate is capped at 6% a year.

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