Banking - Bank deposit interest is starting to increase

Banking - Bank deposit interest is starting to increase Even though Bank Indonesia (BI) maintains its benchmark BI rate at 6.25%, bank deposit interest rates are trending upward. If we look at BI data, the 1-month deposit interest rate in May 2024 reached 4.61%, or an increase of 2 basis points (bps) from the deposit interest rate in April 2024 which was 4.59%. Based on the money supply analysis report, interest rates on term deposits increased for tenors of 1 month, 12 months and 24 months, respectively by 4.64%; 5.91%; and 4.1% in May 2024. Meanwhile, in April 2024 each was recorded at 4.62%; 5.88% and 4.05%. On the other hand, interest rates on term savings or deposits with a tenor of 3 and 6 months in May 2024 decreased to 5.31% and 5.69%, compared to the previous month which was 5.32% and 5.71%. (Source: Kontan)