Digital Banks Continue to Offer Attractive Deposit Rates Amid Falling Interest Rates

High Yield Deposits Remain Competitive

Despite the overall trend of decreasing benchmark interest rates, Indonesian digital banks are maintaining their aggressive stance on deposit rates to attract public funds. The current offerings show rates ranging from 3.75% to 9%, significantly outpacing the 3.5% LPS rate.

Top Digital Banks by Deposit Rates

1. Bank Amar: Offers up to 9% per annum for deposits, maintaining its position as one of the highest yield providers in the digital banking sector.
2. Bank Aladin Syariah: Also offers 9% per annum, targeting both conventional and Sharia-compliant investors.
3. Krom Bank Indonesia: Provides rates between 7%-8.25%, remaining competitive in the premium digital banking space.
4. Superbank: Offers rates ranging from 6% to 7.5%, still above conventional bank offerings.

Market Dynamics

The persistence of high deposit rates by digital banks comes as conventional banks begin to lower their deposit rates following reduced liquidity pressures. This strategic divergence highlights the competitive landscape between traditional and digital banking platforms. Digital banks are leveraging higher rates to maintain their market share and attract new customers in an increasingly competitive environment.

Implications for Investors

The high deposit rates offered by digital banks present an attractive opportunity for investors seeking better returns on their savings. However, investors should carefully review the terms and conditions associated with these high-yield deposit products, as they may come with specific requirements or restrictions.