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Oorinara

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    Bank Savings Interest Rates

    in Jobs, Economy, Banking, Business, Investments

    Posted

    List of banks in Lao

    http://www.bol.gov.la/english/other_banks.html

    - Account opening: physical appearance inevitable. Documentary requirement varies, depending on bank. Some ok with just passport. Some require visa, work permit sort, employment contract, and/or Lao endorser.

    - Amount limit: minimum USD 10-20 for saving, USD 100 for fixed term, or more or less. Haven't heard about max.

    - Interest payment: can choose either monthly or upon maturity (the latter giving slightly higher rate). Interest rates for 2,3,5,+ years tend to be simple one but compound. So need to carefully calculate what's the best rate in annual equivalent base when choosing upon maturity.

    - ATM: can withdraw from USD or THB savings account but in Kip in Lao (at bank's forex rate). Some bears Visa Electron, Maestron or UnionPay, so can withdraw outside Lao. Bangkok Bank allows Phongsavanh bank ATM holders to withdraw in Thailand. Unsure about fees and forex, if any, especially when withdrawing in THB in Thailand from THB account with Lao bank.

    http://www.bol.gov.la/english/other_banks.html

    - Internet banking: BCEL and a few banks offer it but for fee. Uncommon yet, simply put.

    - Auto transfer of monthly interest to bank account in Thailand: recurrent remittance for a fixed period can be arranged over the counter in Lao, some counter officers say. I haven't tried though.

    Counter officers in banks headquarters in Vientiane generally speak better English than in Bangkok. They speak Thai either.

    Bank Savings Interest Rates

    in Jobs, Economy, Banking, Business, Investments

    Posted

    Why dont you look at a bank in Laos? 6% per year on USD

    Currency risk, given that your deposit has to be converted into kip;

    country risk/economic, Laos is a very poor communist country;

    deposit protection, does not exist;

    institution risk, Laos banks are not famed for their stability;

    non-resident taxes on income and at repatriation, unknown;

    and so on.

    We've been there many times in the past on such deals in Laos equivalent countries, the answer is rarely if ever good.

    Lao banks offer 6-8% interest p.a. for time deposit of 1-5 years, in USD or THB (even higher in Kip).

    - Forex risk: none, if in USD or THB (depending on one's original currency and usage thereafter)

    - Country risk: No sovereign rating. Highest country risk as same with North Korea and Myanmar, per OECD list.

    - Deposit protection: up to Kip 15 million (around THB 63k)

    - Institutional risk: Parastatal BCEL is the only bank listed on Lao stock exchange, Besides two more state owned commercial banks. Some local banks have negative capital, are poorly managed, unprofessionally audited and/or loosely regulated. On the other hand, there are reputable players too such as ANZ, Maybank, Thai commercial banks and Cambodia's largest Acleda.

    - Tax: None for resident and nonresident (so far!)

    - Repatriation: Unrestricted if in foreign currency. Deregulated several years ago. Converting Kip to foreign currency, however, is capped to certain amount per transaction/time.

    Thai visa seems not have Lao forum and hence Lao banking and financial thread, so let me post here meanwhile.

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