—This study investigates the household savers of
saving level, saving objectives, forms of saving, the
determinants of the forms of saving, including consistency
between the risk-return concept and the investing decision. The
results show that average saving rate was 29.17% of income and
they were familiar with many forms of saving and investments
available. The main purpose of savings was for post-retirement
spending. Respondents used own decision, together with
information provided by bank staff, to select forms of saving
and investment. Savers tended to invest more in conventional
saving forms, such as bank deposits, insurance policies, gold
and properties, than in financial assets such as government
bond, mutual fund, corporate bonds, and stock. However, as
income levels rose, respondents tended to save less in
conventional forms of saving and more toward capital market.
Investors also recognized the high return nature of investing in
financial assets, but savers have no interest to these types of
investments owing to the high risk character, complicated
investment process, and high initial investment. However, the
highest proportion of savings was allocated to properties (real
estate. Savers also perceived that their physical assets generated
higher returns and are less risky than financial assets.
—Saving, saving behavior, saving instruments.
Nathridee Suppakitjarak is with the Chulalongkorn University, Thailand
Cite: Nathridee Suppakitjarak and Piyarat Krishnamra, "Household Saving Behavior and Determinants of the
Forms of Saving and Investment in Thailand," Journal of Economics, Business and Management vol. 3, no. 3, pp. 326-330, 2015.