Bisnis, JAKARTA — Banks are adopting diverse tactics to bolster their current account savings accounts (CASA) and minimize their cost of funds, particularly in light of increased interest rates.
CASA refers to savings or current accounts that are favored by banks due to their low-interest rates. However, this type of account poses challenges for banks, as customers can withdraw their savings at any time, unlike time deposits that have fixed terms. Despite this, many customers view CASAs as long-term savings instruments due to their flexibility in accessing funds.
The surge in Bank Indonesia's benchmark interest rates over the past year has compelled banks to raise deposit interest rates, especially for time deposits. This, in turn, may impact banks' profit margins.
Consequently, banks are implementing various strategies to promote CASAs over time deposits. PT Bank Syariah Indonesia Tbk. (BRIS), for example, has managed to attract ministries and institutions to open CASAs this year.