State-owned GH Bank attracted strong investor interest for its first savings certificate, worth 27 billion baht, with investors' intending to scoop up 8.35 billion baht worth on the first day of subscription.
There are 5,990 Rabchoke savings accounts open and account holders expressed intent to buy 8.35 million units of the savings certificate in the first day of subscription, president Chatchai Sirilai said.
The bank needs to amend the law for savings certificate issuance, expected to be completed next month, he said. GH Bank will then allow investors to make reservations for the savings lottery.
Those who want to buy a savings certificate must open a Rabchoke savings account for interest payment. Subscription will run through Aug 15.
The saving certificate priced at 1 million baht per ticket offers 1.4% per year to those who hold it until maturity at three years. The interest rate is close to that of three-year fixed deposits, said Mr Chatchai.
If certificate holders win a prize once, their return will be 8.07% per year. This increases to 14.73% if they win twice, 21.4% for three wins, 28.07% for four and 34.73% for five wins.
GH Bank's prize is set at flat amount of 200,000 baht, with 27 prizes per month. Throughout three years, there are total 927 prizes and probability to win a prize is 0.1%, he said.
"Unlike the savings lotteries held by the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives where investors must invest a certain amount of money to win the last-three-digit prize in every draw, our savings certificate offers every holder an equal chance to win the prize," said Mr Chatchai.
After the first batch of lottery-linked savings products is sold out, the bank plans to put out a series of savings certificate worth 10 million baht per ticket by the end of this year.
The state-owned mortgage lender aims to sell 3,000 units of the savings certificate, raising 30 billion baht in fresh funds. Mr Chatchai said the imminent savings certificate's prize is set at a flat rate of 3 million baht per draw, held quarterly.