Jakarta, CNBC Indonesia – Up The BI-7 days reverse repo rate (BI7DRRR) at 6% can certainly have an impact on increasing deposit interest, which is often seen as the easiest means of saving and investing. But what’s up with digital banks?
Even though there is potential for bank deposit interest to increase, the returns on large bank deposits are still inferior to digital bank deposits. Deposits offered by digital banks can generate profits of more than 6% a year.
However, before you decide to place funds in this deposit, know the following things.
If the interest on digital bank deposits is too high, LPS is not guaranteed
Unfortunately, deposit savings are not necessarily guaranteed by the Deposit Insurance Corporation (LPS). This is because it all depends on the interest rate offered by the deposit.
If the deposit offered has an interest rate above the LPS Guarantee Interest Rate, then the deposit will not be guaranteed.
The LPS Guarantee Interest Rate for Commercial Banks for the period 1 October 2023 to 31 January 2023 is 4.25% (Rupiah) and 2.25% (Forex).
The initial capital for digital bank deposits can be smaller
Commercial banks usually set a minimum capital of IDR 5 million to open a deposit, while digital banks can set IDR 1 million.
However, it can be said that the liquidity of large bank deposits is still much better than that of digital banks. Although large banks implement a penalty policy for withdrawals before maturity.
Digital banks generally lock your investment capital so that it is not withdrawn before maturity. This feature certainly does not apply to large bank deposits in general.
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