Bank hails savings boost among poor

GSB gave a free piggy bank to every client who opened a savings account yesterday, marking National Savings Day. Worrapon Phayakum

The ratio of low-income earners who save money has risen to 55% this year from 50% in 2016, says Government Savings Bank (GSB).

Low-income earners' savings are averaging 2,000 baht a month, president and chief executive Chatchai Payuhanaveechai said yesterday, adding that the country's savings have climbed 4-5% since the end of last year to 20 trillion baht.

But higher savings deposits are still needed to meet the government's big-ticket infrastructure plan, Mr Chatchai said after presiding over GSB's National Savings Day, held every year on Oct 31.

On the same day a year ago there were 622,000 accounts opened with deposits of 13.6 billion baht at GSB.

To encourage people to save money, the state-owned bank yesterday offered piggy banks to existing customers who deposited money, starting from 200 baht, or to new clients who opened savings accounts.

The central bank recently expressed concerns over the country's low savings rate. With interest rates having remained at low levels for a long period of time, some people have been discouraged from saving even as Thailand has become an ageing society.

The government expects the number of people aged 60 and over to represent 16.8% of the population in 2020, rising to 20% in 2025 -- up from 13.8% in 2015.

Regarding the Finance Ministry's plan to manage dormant bank accounts that have money sitting idly for 10 years and longer, Mr Chatchai said the bank is ready to comply with the policy when the law comes into force.

At present, GSB has about 500,000 accounts that have been inactive for more than five years; 75% of the idle accounts have outstanding deposits of less than 2,000 baht, and 25% have deposits in the amount of 2,000 baht or more.

But GSB accounts that have deposits of 2,000 baht or more and have sat idly for at least 10 years represent a mere 1% of GSB's deposits outstanding, so the law would probably have little impact upon taking effect.

The bank has 30-40 million savings accounts.

Mr Chatchai said welfare smart cards have been distributed to up to 2.6 million recipients, accounting for 85% of those who signed up for assistance at the bank.