The state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) plans to launch savings lotteries worth 120 billion baht this year to refinance retiring ones, its senior officer says.
The bank expects the new batch of savings lotteries will be sold out three months after the subscription is opened on May 17, said Kasarb Ngernruang, executive vice-president.
The first prize for the upcoming savings lotteries is set at 15 million baht, up significantly from 10 million in previous lotteries linked with savings products. The 15-million-baht prize will be offered for only six draws and prizes for the remaining 30 draws will be reduced to 10 million each.
Moreover, the new savings lotteries will yield higher returns than the preceding ones.
For example, those who invest 100,000 baht to buy 1,000 units of the new savings lotteries will get 1.33% in return when accounting for the prize payouts.
The return will increase to 1.44% if investors deposit 1 million baht.
The three-year maturity savings lotteries offer holders 0.75 baht per 100-baht unit. Apart from the first prizes, holders of such savings are eligible for 2.53 million prizes throughout the scheme, valued at 163 million baht a month.
However, the state-backed farm bank will not pay interest to savings lottery holders if the units are redeemed early.
Savings lotteries currently amount to 410 billion baht, accounting for a quarter of the BAAC's total deposits.
President Apirom Sukprasert said the BAAC targets new deposits of 58 billion baht this financial year, of which 15 billion will be deposited by farmers.
To encourage farmers to make deposits, the bank plans to launch lottery savings with higher rewards.
BAAC's financial year runs from April 1 to March 31.
