Foreign currency deposit (FCD) accounts have grown rapidly, driven primarily by individuals, especially younger depositors seeking higher returns.
As of April 2025, the total number of FCD accounts in the banking industry tallied 4.33 million, rising 71.6% year-to-date and 433% year-on-year, according to Kasikorn Research Center (K-Research).
In terms of outstanding deposits, these accounts had 25.5 billion baht, rising 4.5% year-to-date and 15.5% year-on-year.
The significant growth in FCD accounts was attributed to individuals, who held 4.25 million accounts as of April, an increase of 73.6% year-to-date and 467% year-on-year.
Outstanding deposits held by individuals amounted to 2.46 billion baht, rising 15.3% year-to-date and 105% year-on-year.
Kanjana Chockpisansin, head of banking and financial sector research at K-Research, said demand for FCD accounts steadily increased over the past decade and posted robust growth over the last three years.
This trend was driven by both rising depositor interest and active marketing campaigns by banks, as Thai depositors seek higher returns from deposit products.
“Although some FCD accounts offer higher interest rates than baht-based deposits, depositors should take foreign exchange risk into account, especially given the current market volatility,” she said.
Siam Commercial Bank (SCB) projects double-digit growth in new FCD account openings this year. Young individual depositors, in particular, are showing increased interest in FCDs to secure better returns.
This demographic is well-versed in both information and digital technology, enabling easier access to such financial products, said Patrick Poulier, first executive vice-president and head of financial markets at SCB.
SCB, the country’s fourth-largest lender by total assets, offers new FCD account opening through its mobile app SCB Easy under the brand name e-FCD.
The product attracted significant interest from younger customers, who are typically tech-savvy and seeking alternative deposit and investment options for higher returns, he said.
“In recent years, our new FCD accounts have grown by 50-100% annually, depending on the account type,” said Mr Poulier.
“For this year, we are targeting double-digit growth.”
He said Thai investors have been increasingly attracted to international investment options, including FCDs, over the past decade in search of superior returns.
The declining trend in domestic interest rates is another factor encouraging depositors to open FCD accounts, said Mr Poulier.
SCB’s Economic Intelligence Center expects the Bank of Thailand to cut its policy rate twice this year, reducing it from 1.75% to 1.25%.
