Interest Rate War in Digital Banking Begins

A number of digital banks have begun to aggressively collect third party funds (DPK) by offering interest rate on savings account of up to seven percent and deposit interest of up to eight percent per year to new customers. For example, according to information on the official website, Seabank will provide a deposit interest rate of up to seven percent until December 2021 for new customers.

Meanwhile, the official Instagram account of PT Bank Neo Commerce Tbk (BBYB) reveals that the bank's interest on the savings account is six percent per year and the deposit interest rate of up to eight percent per year. In fact, the bank's marketing team offers an interest rate of up to 9.5 percent for six-month tenor deposits, which is above the amount guaranteed by the Deposit Insurance Corporation (LPS) of 3.50 percent per year at the most. The chairman of the LPS Board of Commissioners Purbaya Yudhi Sadewa said that the bank should explain to the customer that the agency would not guarantee the deposits with the interest rate exceeding the bank's limit so that they would know the risks.