Siam Commercial Bank (SCB) and Kasikornbank (KBank) have raised their fixed-deposit rates by 25 basis points, following in the footsteps of Government Savings Bank (GSB), which partly passed through the central bank's higher rate in December.
SCB's new rates take effect today, while KBank's come into force tomorrow.
KBank's announcement of its rate hike came shortly after SCB said it would boost its fixed-deposit rates.
SCB, the country's second-largest bank by assets, hiked its three-month fixed-deposit rate to 1.15% from 0.9%, its six-month fixed-deposit rate to 1.40% from 1.15%, its 12-month fixed-deposit rate to 1.65% from 1.4%, its 24-month fixed-deposit rate to 1.7% from 1.45%, and its 36-month fixed-deposit rate to 1.85% from 1.6%.
The new rates will be applicable to individual depositors who deposit money not exceeding 5 million baht at the bank.
"SCB appears to be the first commercial bank to raises fixed-deposit rates for retail depositors," said president and chief executive Arthid Nanthawithaya. "In the meantime, the bank is keeping lending rates unchanged to alleviate the burden on people, particularly low-income earners."
KBank increased its three-, six-, 12-, 24- and 36-month fixed-deposit rates to a range of 1.15-1.85%, the bank said in a release.
The two banks' moves are likely to prompt other commercial banks to follow suit, said an analyst who commented on condition of anonymity.
GSB announced a few weeks ago that it would raise fixed-deposit rates by 25 basis points for fixed-deposit accounts across the board, effective from Dec 24, but keep lending rates unchanged.
The state-owned bank's move came in the wake of the Bank of Thailand's rate hike of 25 basis points at the Dec 19 meeting, marking the first increase since 2011.
Kasikorn Research Center, a research unit under KBank, has said it expects some commercial banks to begin passing on the central bank's higher rate to fixed deposits, mortgages and auto loans in the first half of 2019, with higher savings and prime lending rates likely to follow in the latter half.