Are Some Banks More Risky Than Others?

[yankee-expat]

I have been opening bank accounts at any and all banks that will allow it. I have several reasons for doing this:

• Spread the risk - not keeping all my money in one bank
  
• Never know when they will tighten "regulations" making it harder to open accounts
  
• Some smaller banks offering better interest
  

For a time deposit, Bangkok Bank offers a paltry 3 percent where Thanachart and TMB offer 4+. Why the huge disparity in rates?

Is there somewhere a rating of current banks? Anyone heard of Thanachart?

[solo siam]

When was the last time a Thai Bank went under?

[yankee-expat]

I believe some went under in the late 90's when the Asian economies went down the toilet.

[prighas]

For a time deposit, Bangkok Bank offers a paltry 3 percent where Thanachart and TMB offer 4+. Why the huge disparity in rates?

Actually, BBL does offer 4+ if the deposit period is 12 months.

[yankee-expat]

Not 2 weeks ago. They offered me 3. Maybe the teller was an idiot, she wrote it on a piece of paper - no official statement like Thanachart.

TMB was almost 5 percent.

[ilyushin]

I am using Thanachart Bank for some business. Really not enough for a risk whistle to go off.

FYI - Thai Thanachart Bank

Edited January 8, 2007 by ilyushin

[topfield]

I have been opening bank accounts at any and all banks that will allow it. I have several reasons for doing this:

• Spread the risk - not keeping all my money in one bank
  
• Never know when they will tighten "regulations" making it harder to open accounts
  
• Some smaller banks offering better interest
  

For a time deposit, Bangkok Bank offers a paltry 3 percent where Thanachart and TMB offer 4+. Why the huge disparity in rates?

Is there somewhere a rating of current banks? Anyone heard of Thanachart?

The highest rates are from the Thai Government Housing Bank. Good service too.

[prighas]

Not 2 weeks ago. They offered me 3. Maybe the teller was an idiot, she wrote it on a piece of paper - no official statement like Thanachart.

TMB was almost 5 percent.

Please check:

http://www.bbl.co.th/Bangkok+Bank/Web+Serv...posit+Rates.htm

[topfield]

Not 2 weeks ago. They offered me 3. Maybe the teller was an idiot, she wrote it on a piece of paper - no official statement like Thanachart.

TMB was almost 5 percent.

Many banks are offering 5 percent but this will depend on

1. the amount deposited

2. the length/ period of the deposit

TAKE NOTE : 15 PERCENT TAX WILL BE DEDUCTED AT SOURCE UNLESS YOU ARE A THAI CO.

[yankee-expat]

TAKE NOTE : 15 PERCENT TAX WILL BE DEDUCTED AT SOURCE UNLESS YOU ARE A THAI CO.

I thought that was tried and abandoned. 15 percent of what?

If I deposit 1 million baht in Bangkok Bank at their measly .75 of a percent interest, are you saying that they paid me interest minus 15 percent?

I am talking solely about an individual deposit account.

[prighas]

TAKE NOTE : 15 PERCENT TAX WILL BE DEDUCTED AT SOURCE UNLESS YOU ARE A THAI CO.

I thought that was tried and abandoned. 15 percent of what?

If I deposit 1 million baht in Bangkok Bank at their measly .75 of a percent interest, are you saying that they paid me interest minus 15 percent?

I am talking solely about an individual deposit account.

15% tax is deducted from the interest earned on your time deposit. If you deposit 1 million baht at 4% annual interest, then the tax withheld is 15% of 40,000 baht equal to 6000 baht.

[Old Man River]

I have been opening bank accounts at any and all banks that will allow it. I have several reasons for doing this:

• Spread the risk - not keeping all my money in one bank
  
• Never know when they will tighten "regulations" making it harder to open accounts
  
• Some smaller banks offering better interest
  

For a time deposit, Bangkok Bank offers a paltry 3 percent where Thanachart and TMB offer 4+. Why the huge disparity in rates?

Is there somewhere a rating of current banks? Anyone heard of Thanachart?

Just looking at interest rates as a barometer for bank risk is misleading. A bank's interest rate depends on their need of funds for the time period being offerred, coupled with their view on trends in interest rates. Hence, a good bank may pay more than a risky bank for the same period because they need the funds more and think that rates will be rising (better to pay a little more now and lock in the funds than pay more later if their view is correct).

There is a lot of good info on Thai banks being put out by securities companies that follow the listed companies on the SET. They research these companies as to whether they are good buys or not and some of the research is first rate. You can always draw your own conclusions about banks, but the info on their financial conditions is available.

Thannachart's parent, National Finance Group, has been around for a long time and is a well run financial institution. Thannachart was run as a finance company, but a few years ago was awarded a full commercial banking license (similar to TISCO and a few others).

You should be aware that Thailand does not have deposit insurance similar to what you get in the US. When finance companies and banks failed in 1997, the government did step in and guarantee deposits, but that was then and this guarantee is not in force now. From time to time this issue comes up for discussion, but unless it is based on an iminent need, nothing is likely to happen.

[yankee-expat]

TAKE NOTE : 15 PERCENT TAX WILL BE DEDUCTED AT SOURCE UNLESS YOU ARE A THAI CO.

I thought that was tried and abandoned. 15 percent of what?

If I deposit 1 million baht in Bangkok Bank at their measly .75 of a percent interest, are you saying that they paid me interest minus 15 percent?

I am talking solely about an individual deposit account.

15% tax is deducted from the interest earned on your time deposit. If you deposit 1 million baht at 4% annual interest, then the tax withheld is 15% of 40,000 baht equal to 6000 baht.

Are you 100 percent certain of this? I had heard they tried this, but it had been yet another wannabe idea in LOs.

Have you experienced this for yourself on an individual account - not a business account?

Edited January 8, 2007 by yankee-expat

[prighas]

TAKE NOTE : 15 PERCENT TAX WILL BE DEDUCTED AT SOURCE UNLESS YOU ARE A THAI CO.

I thought that was tried and abandoned. 15 percent of what?

If I deposit 1 million baht in Bangkok Bank at their measly .75 of a percent interest, are you saying that they paid me interest minus 15 percent?

I am talking solely about an individual deposit account.

15% tax is deducted from the interest earned on your time deposit. If you deposit 1 million baht at 4% annual interest, then the tax withheld is 15% of 40,000 baht equal to 6000 baht.

Are you 100 percent certain of this? I had heard they tried this, but it had been yet another wannabe idea in LOs.

Have you experienced this for yourself on an individual account - not a business account?

I'm 100 percent certain. And Yes I have experienced it on my own individual account.

Edited January 8, 2007 by prighas

[the pleiadian]

Try ING Thailand. Have very safe low risk funds at 4.5-5 % annual. I still keep some money there in the 3 month role over fund at 4.7%.

[topfield]

Try ING Thailand. Have very safe low risk funds at 4.5-5 % annual. I still keep some money there in the 3 month role over fund at 4.7%.

Yes but there will be a 15% witholding tax in Thailand !

That;s where the Singapore , Cambodian and Lao banks come in !

Fixed baht deposits are available at many banks there.

No witholding tax in those countries so the saving could be substantial on a large amount.

[yankee-expat]

I found ING's website. I have a savings account in the States with them. Where are they located? It would appear they only have a Bangkok address. I'm in Pattaya.

[endure]

TAKE NOTE : 15 PERCENT TAX WILL BE DEDUCTED AT SOURCE UNLESS YOU ARE A THAI CO.

I thought that was tried and abandoned. 15 percent of what?

If I deposit 1 million baht in Bangkok Bank at their measly .75 of a percent interest, are you saying that they paid me interest minus 15 percent?

I am talking solely about an individual deposit account.

15% tax is deducted from the interest earned on your time deposit. If you deposit 1 million baht at 4% annual interest, then the tax withheld is 15% of 40,000 baht equal to 6000 baht.

Are you 100 percent certain of this? I had heard they tried this, but it had been yet another wannabe idea in LOs.

Have you experienced this for yourself on an individual account - not a business account?

I'm 100 percent certain. And Yes I have experienced it on my own individual account.

You can apply for a full refund of the tax deducted between January and March of the following year. I have a friend that's been getting a full refund of his term deposit interest for a number of years.

[yankee-expat]

You can apply for a full refund of the tax deducted between January and March of the following year. I have a friend that's been getting a full refund of his term deposit interest for a number of years.

Where does one APPLY?

[Old Man River]

Try ING Thailand. Have very safe low risk funds at 4.5-5 % annual. I still keep some money there in the 3 month role over fund at 4.7%.

While there is no problem with ING Thailand from a risk factor, you need to be aware that most probably you will be taking country risk. This is the same for all banks domiciled in Thailand, but many think by banking at a foreign bank that the the local institution is legally backed up by the credit worthiness of the parent. This is only true if the local operation is a branch of the parent. If it is a separate entity, like most are, then legally the parent is not liable for any of the liabilities of the subsidiary (deposits are a bank's liabilities).

In practice, large foreign banks will back up (i.e. pay out) funds on deposit if something happens to the local subsidiary to keep up their good name. Just be aware that it is usually not a legal obligation, but rather a moral obligation.

[yankee-expat]

So may I assume my money is safer in banks such as Siam, BB, K-Bank - Ayuttya etc ..

[oxymoron]

You can apply for a full refund of the tax deducted between January and March of the following year. I have a friend that's been getting a full refund of his term deposit interest for a number of years.

Where does one APPLY?

Thailands banking system is identical to that in most parts of the developed world. If you can not supply a TAX FILE number they must by law apply with-holding tax.

Where do you apply??? You submit a Tax Return, same as you would in your own country. But beware as Thailands Tax laws are also very similar to other countries so they require information of all your earnings in other countries. Its no different to Australian Taxation Law.

So if your playing games write the 15% off as "the cost of doing business".

[retiree]

Thailands banking system is identical to that in most parts of the developed world. If you can not supply a TAX FILE number they must by law apply with-holding tax.

If you supply a Thai tax ID, is the bank supposed to waive the withholding (on the assumpting that you will be filing a Thai tax return)? Of do they still withhold, but the amount will be refunded if you don't owe Thai tax?

Retiree

[JacknDanny]

So may I assume my money is safer in banks such as Siam, BB, K-Bank - Ayuttya etc ..

My opinion is that it depends how much you have got?

With the present climate, I would only take a chance with Bangkok Bank, Kasikorn Bank and Siam Commercial.

Most of my money is in Jersey and Singapore. I certainly wouldnt risk more than a couple of million baht in each of the above banks, certainly not at the moment anyway.

6 million is enough to have here to live on. The rest leave out of the country until you need it. Thats what I do anyway

[topfield]

So may I assume my money is safer in banks such as Siam, BB, K-Bank - Ayuttya etc ..

My opinion is that it depends how much you have got?

With the present climate, I would only take a chance with Bangkok Bank, Kasikorn Bank and Siam Commercial.

Most of my money is in Jersey and Singapore. I certainly wouldnt risk more than a couple of million baht in each of the above banks, certainly not at the moment anyway.

6 million is enough to have here to live on. The rest leave out of the country until you need it. Thats what I do anyway

6 million is enough to have here to live on. JacknDanny

Hi

Care to explain why six million. Thanks

[yankee-expat]

Must like to drive 4 Camrys.

[yankee-expat]

Why did you pick Siam, BB and Kasikorn? What about Bank Ayuthya (sic)? Siam won't give me an account. They want a work permit. They'll take a residence permit but I haven't gotten around to getting up early enough to go to Immigration to get one.

Or do I need one for each bank and the drivers license?

[endure]

You can apply for a full refund of the tax deducted between January and March of the following year. I have a friend that's been getting a full refund of his term deposit interest for a number of years.

Where does one APPLY?

My friend applies at his local tax office in the town where he lives. You need to get a tax card and then it's simply a matter of turning up between Jan and March every year. If you turn up later than March they give you slightly less than 100% refund.

[junkofdavid2]

Interest rates of government housing bank:

http://www.ghb.co.th/eng/rate/rate_deposit_eng.htm

Interest rates of most banks in Thailand:

http://www.bot.or.th/BOThomepage/databank/.../interest_e.asp

Edited January 10, 2007 by junkofdavid2

[JacknDanny]

So may I assume my money is safer in banks such as Siam, BB, K-Bank - Ayuttya etc ..

My opinion is that it depends how much you have got?

With the present climate, I would only take a chance with Bangkok Bank, Kasikorn Bank and Siam Commercial.

Most of my money is in Jersey and Singapore. I certainly wouldnt risk more than a couple of million baht in each of the above banks, certainly not at the moment anyway.

6 million is enough to have here to live on. The rest leave out of the country until you need it. Thats what I do anyway

6 million is enough to have here to live on. JacknDanny

Hi

Care to explain why six million. Thanks

Thats the figure I am prepared to keep here. Dependant on your life style it is probably NOT enough to retire on and live off, but I am quite lucky in as much as my savings are outside Thailand, and the 6 million I have here is "topped up" from time to time.