House-subscription interest rates to go down

The interest rate of house-subscription savings accounts will be lowered later this month as part of efforts to balance the budget of the national housing fund, the government said yesterday.

According to the Ministry of Land, Infrastructure and Transport, starting July 22 the interest rate on house-subscription savings accounts of one to two years will be lowered from the current 3 percent to 2.5 percent and on accounts of more than two years from 4 percent to 3.3 percent.

The interest rate for an account of less than a year will be maintained at 2 percent.

Interest rates for house-subscription savings accounts have been higher than the average for fixed deposit bank accounts, leading to a recent surge in subscribers.

The interest rate of a two-year fixed deposit product at commercial banks, meanwhile, is in the 2 percent range.