CIMB BANK Philippines, Inc. (CIMB Bank PH) on Wednesday launched a time deposit product that offers a savings rate of up to 7.5%.
“This will be the highest offering of time deposit rate in the country. We will be offering a trust rate of up to 7.5% and the tenors will range from six months to two years. Right now, we’re offering three tenor options at six months at 6.5%, 12 months at 7%, and 24 months at 7.5%,” CIMB Bank PH Chief Business & Strategy Officer Ankur Sehgal told reporters at an event last week.
The digital-only commercial lender expects its MaxSave Time Deposit product to significantly boost its customer base as the high savings rate can attract more users.
As of end-2023, CIMB Bank PH had 7.6 million customers.
“For time deposits, we are targeting to have one million time deposit customers taken in the first year. Based on our projection, I think in the next three years, we expect at least 50% of our customers to take up time deposits because of our current savings product…. This will be a very high rate of 7.5%, so we do expect very high pickup. It is also the highest time deposit rate in the market. So, because of that, we expect very high pickup in the coming year,” Mr. Sehgal said.
MaxSave Time Deposit is part of the bank’s bid to innovate digital banking product services in the country to promote financial inclusion, it said in a statement.
“With MaxSave Time Deposit, your hard-earned money can work even harder for you so you can maximize the returns on your savings and explore the many possibilities you can pursue to truly live your life’s purpose. This helps enable you to be ready for the future and bring you closer to financing and achieving your next big life goal,” CIMB Bank PH President and Chief Executive Officer Vijay Manoharan was quoted as saying.
MaxSave Time Deposit is only available on the bank’s mobile app and is insured by the Philippine Deposit Insurance Corp. for deposits up to P500,000. Customers will need an active and fully verified CIMB Bank PH deposit account to avail of the product.
The product’s rates will be reviewed on a quarterly basis and could be adjusted depending on the savings rate of competitors and when the Bangko Sentral ng Pilipinas begins its easing cycle, Mr. Sehgal said.
“The repricing will only apply for new time deposit customers. For existing customers, the 7.5% is flat,” he noted.
CIMB Bank PH had total assets of P33.52 billion as of end-September 2023, according to data from the central bank. — A.M.C. Sy