Digital banks offer high interest rates, says LPS

Reporter: Ferrika Sari | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – BANDUNG. The Deposit Insurance Corporation (LPS) does not prohibit digital banks from offering high deposit rates to attract more customers. However, the bank still has to clearly inform the customer that the deposit is not guaranteed by LPS.

“This is legal, but I ask these banks, to pay attention, to provide clear information for their customers that these customers are not fully guaranteed by LPS,” said Chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadewa in Bandung, Saturday. (11/12).

Therefore, Purbaya asks the public to understand the risks and not be easily tempted by high interest offers. One of them is by choosing a bank that guarantees its deposits to LPS.

There are three conditions so that customer deposits are guaranteed by LPS, otherwise known as 3T. First, it is recorded in the bank’s books. Second, the deposit interest rate does not exceed the LPS guarantee interest. Third, do not cause the bank to become a failed bank.

Also Read: LPS: Banking conditions in Indonesia are still under control

Meanwhile, LPS Secretary Dimas Yuliharto stated, LPS guarantees all bank participation in Indonesia, including digital banks. Customers can take high interest as long as they want and understand the risks.

“When banks provide high interest rates, their attention is actually from the side of OJK supervision. LPS only urges customers to remember the 3T provisions,” he said.

Approaching the end of the year, IDIC is still holding the interest rate on deposit guarantees at commercial banks and rural banks for the period September 2021 to January 28, 2022.

Currently, the guarantee interest rate in rupiah and foreign currency at commercial banks is 3.50% and 0.25%, respectively. Meanwhile, the interest on the guarantee for BPR is 6.00%.

As is known, LPS guarantees customer deposits of up to IDR 2 billion in one bank. The savings are in the form of demand deposits, time deposits, certificates of deposit, savings and others.

As of October 2021, there are 1,742 LPS insurance participating banks. Consists of 107 commercial banks and 1,635 rural banks.