GOVERNMENT Savings Bank (GSB) has launched a new product for the elderly called Senior Citizens Bank offering higher savings and lower lending rates, Thai News Agency said today (April 4).
Chatchai Payuhanaveechai, the bank’s CEO, said that Thailand’s graying population has been increasing since 2005 even as the overall population has begun to decrease which led to Prime Minister Prayut Chan-o-cha introducing a policy that all agencies start adjusting to these changes and be ready to help take care of the elderly.
For this reason GSB has immediately introduced some services for senior citizens with the first one being higher savings rates. Those over 60 who open an account with minimum 100 baht and maximum 1 million baht will get 1% interest per annum (100% higher than the ordinary rate which is 0.5%).
Senior citizens opting for a special 24-month savings package with minimum 10,000 baht an account and maximum 1 million baht will enjoy stepped up interest rate which for the first to the sixth month is 1% per annum; 7th to 12th month 1.5%; 13th to 18th month 2% and 19th to 24th month 3% which works out to be an average of 1.875% a year.
Also available is a reverse mortgage on homes owned by the elderly so that they have funds to live on. GSB will give 70% of the assessed value of landed property and 60% of condos at not more than 6% interest rate a year.
Filial piety is also rewarded with those over 20 years of age who have a steady job and take care of their parents and grandparents or those of their spouse with their name being on the same household registration book getting lower mortgage rates. This is 0% the first year; MRR minus 2.75% the second year; MRR minus 1.50% the third year; MRR minus 0.75% the fourth year for a maximum 25-year period.
Top: Government Savings Bank’s CEO Chatchai announcing Senior Citizens Bank initiative. Photo: Thai News Agency