A number of digital banks in Indonesia are still offering high deposit interest rates to attract customers. Some of these rates exceed the guarantee level set by the Indonesia Deposit Insurance Corporation (LPS).

The current economic landscape, influenced by a global trade war, has made it difficult to lower global and benchmark interest rates. In this high-interest environment, bank deposits offer more profitable investment opportunities compared to savings accounts.

Amar Bank, Krom, and Allo Bank Lead in Offering Highest Interest Rates

Several digital banks have raised their deposit rates as of April 2025. Amar Bank offers the highest rate at 9% annually, up from 7%. Krom follows with 8.75%, while Allo Bank offers between 7.5% and 8%.

The latest maximum annual deposit rates from digital banks are

• Bank Raya – 5%
• Jenius – 5.5%
• Digibank – 5%
• Allo Bank – 7.5% to 8%
• TMRW by UOB – 5.25%
• Neobank – 8%
• Bank Jago – 6%
• LINE BANK – 7.5%
• SeaBank – 6%
• Bank Saqu – 6%
• Krom – 8.75%
• Amar Bank – 9%

Deposit Rates Exceed LPS Guarantee Threshold

LPS does not guarantee deposits with interest rates above the applicable threshold. For commercial banks, the insured deposit interest rate is 4.25% for rupiah and 2.25% for foreign currencies. Digital banks offering rates above these limits may expose customers to risks beyond LPS protection.

Bank Raya Reveals Strategy Amidst Tight Liquidity and Rising Interest Competition

PT Bank Raya Indonesia Tbk. (AGRO) stated that it currently has no plans to adjust deposit or loan interest rates but remains open to changes. "Because now liquidity is quite tight. We want to play the long game with attractive interest offerings," said Kicky Andrie Davetra, Business Director of Bank Raya.

He said the bank is exploring new strategies to compete with digital banks offering interest rates above 7%.

Short-Term Digital Lending Keeps Bank Raya’s LDR at 87%

Kicky explained that Bank Raya’s loan-to-deposit ratio remains at 87%, supported by a digital lending model based on short tenors. "Digital lending is about shorter, faster, smaller. For example, working capital loans have an outstanding balance of around IDR 700 billion, but our disbursement last year reached IDR 17 trillion. That’s because the turnover is fast," he said.

He also noted that adjustments in lending rates may not happen as quickly as those for deposit interest. "In the current condition, we are playing in digital lending. So, maybe adjustments won’t be as fast as deposit interest increases. Why? Because we play in short tenors daily. We actually play in frequency," he said.

Bank Raya recorded a net profit of IDR 50.89 billion in 2024, growing 108.9% year-on-year from IDR 24.35 billion in 2023. Net interest income increased by 17.25% year-on-year to IDR 571.97 billion. Loan disbursement grew 3.37% to IDR 7.13 trillion. Gross NPL stood at 3.22%, and net NPL at 1.20%.

PHOTO: FORBES

This article was created with AI assistance.