Digital Bank Gives High Savings Interest To Customers, LPS Boss: It's OK As Long As It's Transparent

Chairman of the LPS Board of Commissioners Purbaya Yudhi Sadewa. (Photo: ANTARA)

JAKARTA - The Deposit Insurance Corporation (LPS) has stated that it does not prohibit digital banks from providing high interest rates, as long as they inform customers of the risks. The head of the LPS Board of Commissioners, Purbaya Yudhi Sadewa, said deposits with interest above the guaranteed interest rate are not borne by LPS.

"It's fine as long as they are transparent to customers. If that amount of interest is not guaranteed by LPS. As we promised before, we will call and announce which banks are not guaranteed by LPS," said Yudha in a virtual press conference, Wednesday. May 25.

Yudha added that LPS will call and announce the name of the digital bank to the public if it is not transparent about the current guarantee interest rate.

Thus, customers can find out whether their deposits are guaranteed or not by LPS.

He admitted that he often received reports related to the high interest on deposits or deposits given by digital banks reaching eight percent exceeding the amount guaranteed by LPS.

Meanwhile, Chief Executive of Lana LPS, Soelistianingsih added, there are several conditions so that these deposits are guaranteed from LPS.

First, it is recorded in the bank's books. Personal data and a list of customer deposits are recorded in the bank's books. Therefore, keep all proof of banking transactions.

Second, the interest rate received does not exceed the LPS guarantee interest rate. LPS, he continued, urges bank customers to be wise in receiving cashback from banks.

Lastly, do not take actions that are detrimental to the bank, such as not having bad credit and paying off loan obligations on time.

"We always remind about 3T by LPS which is a condition that we have set so that their deposits can be guaranteed if at any time the bank fails. We also recommend that customers ask the bank what the guaranteed interest rate is, because that is the right of the depositor. With this, customers also help that their deposits are guaranteed by LPS," said Lana.