please explain a " foreign currency account"

[pumpjack]

want keep money outside of EU/UK at this moment,       however i will need it in a couple more years.      can i put money into kasikorn account then withdraw it in same currency years later or does it depend on rates shifting or fixed rate ? 

 

someone please explain in simple terms .

 

i would ask the bank but every time i am in the bank its like getting teeth pulled

[worgeordie]

To put it simply,it's an account at the bank in Foreign currency,US Dollars,

Euros,Sterling as example, I believe little or no interest been paid,whatever 

currency you put in you will be able to withdraw in the future.but i also 

believe not easy to open such an account,for the man in the street,

regards worgeordie

[userabcd]

I was in Krungsri bank the a few weeks ago and inquired about opening such an account, I was told it was possible and you can hold your savings in the account in your currency of preference.

 

There are accounts for individuals but the interest rates are paltry, there are min balances to maintain and applicable fees when withdrawing funds.

 

Have a look at the Thai banking web sites, the info is there for documentation required for opening a FC deposit account, it varies by institution. From what I see Krungsri seems to be quite easy for individuals.

Edited January 17, 2018 by userabcd

[Henricus]

took me 5 min. to open such a account

[TheFishman1]

Yep took me about 5 minuets also

[crazykopite]

Can I suggest that if you want to hold a foreign currency account take a trip to Singapore and open one with HSBC when I opened mine 10 years back the requirement was to deposit $60,000 US and to maintain at that level . I don’t know what the amount is today . I did mine in one day was given credit / debit cards I wouldn’t hold a Foreign currency account in Thailand getting money out of the country is a bloody nightmare I have already experienced it and promised myself never again ?

[gamini]

1 hour ago, Henricus said:

took me 5 min. to open such a account

can I use it for my retirement visa

[pumpjack]

29 minutes ago, TheFishman1 said:

Yep took me about 5 minuets also

lucky you, guys.  

 

i jjust been to 2 branches and got little or no sense from either.  soi buahkao in pattaya and also the pattaya klang branch in that branch was told to go upstairs,  waited 30 minutes then was told that this was international transfer section and go back downstairs.   went down stairs and was told come back with my passport& visa ,   told them i want to only enquire about this account and how i can open and was told must go my home branch in phetkasem road  in hau hin.

 

i am tourist and allready have an account in hau hin, i have no visa,

question ....

1.   do i need visa for this FCD account ? 

[hobobo]

1 hour ago, userabcd said:

I was in Krungsri bank the a few weeks ago and inquired about opening such an account, I was told it was possible and you can hold your savings in the account in your currency of preference.

 

There are accounts for individuals but the interest rates are paltry, there are min balances to maintain and applicable fees when withdrawing funds.

 

Have a look at the Thai banking web sites, the info is there for documentation required for opening a FC deposit account, it varies by institution. From what I see Krungsri seems to be quite easy for individuals.

Krungsri is indeed one of the best. Their minimum balance is US$500 or equivalent in the currency chosen. They offer accounts in 12 currencies (US, GBP, EUR, JPY, AUD, CHF, SGD, HKD, NOK, SEK, DKK and CNY). Transfers are handled by the Bank of Ayudhya and in my 7 year experience (about 10 transactions a year) I've never had a cause to complain.

[hobobo]

55 minutes ago, gamini said:

can I use it for my retirement visa

You can.

[hobobo]

Just now, hobobo said:

You can.

Forgot to add: the bank letter reflects the amount in baht on the day of the letter, so for GBP and EUR (and many other currencies) ensure that you have a few quid over the minimum 800,000 equivalent

[tryasimight]

2 hours ago, TheFishman1 said:

Yep took me about 5 minuets also

Did you wear top hat and tails...... I bet the tellers were impressed!! 

[trd]

can I use it for my retirement visa

I used my Krungsri FCD account to renew my retirement visa last month.

[trd]

You can open an FCD account account at Krungsri in a few minutes with only your passport but the initial deposit must be in foreign bank notes so if it's GBP as mine is I had to give them 500 pounds in cash.

 

 

[trd]

The initial deposit of 500 pounds incures a 1% fee, but then subsequent TT transfers inwards in foreign currency will incur a charge of 0.5% but no greater than 500 Baht whatever the amount.

 

 

 

 

[simoh1490]

If you open a foreign currency account, be aware there are charges which need to be understood. You pay nothing to deposit foreign currency into the account but if you try to withdraw foreign currency from the account there is a fee in lieu of the exchange rate commision - withdrawing the foreign currency as THB doesn't attract such a fee but of course, you will have to pay the exchange fees. Also, if you try to transfer the foreign currency out again there will be a fee that is different from the normal fund's transfer fee and varies from bank to bank - some banks also levy an annual charge to maintain the account.

 

If you want to open the account and fund it with foreign currency and later exchange it for THB, the account can be worthwhile since you can pick and choose when to make the exchange. But, if you simply want to have the account as a place to store foreign currency and later export them overseas, the account is an expensive way to simply store money since the interest rates are almost non-existent.

[ExpatOilWorker]

Acceptable Currencies

• United State Dollar(USD)
• Great British Pound Sterling(GBP)
• Japanese Yen(JPY)
• Australian Dollar(AUD)
• Swiss Franc(CHF)
• Euro(EUR)
• Singaporean Dollar(SGD)

 

Documents required

1.Individual Resident Account

• A copy of Thai Citizen Identification

2. Individual Non-Resident Account

• A copy of passport,and
• A copy of work permit for Thailand

3. Corporate Account

• A copy of Business Registration. or Certificate of Incorporation
• A copy the Articles of Association
• A copy of resolution of board of directors' meeting indicating the intention to open the account, duly cerfified by the corporate secretary of the company or corporation, and notarised by a competent notary public
• A letter of Attorney designating a person(s), and specimen signature(s) of said person(s) to sign for and on behalf of the company
• For corporate account incorporated in Thailand; all credit transactions must be accompanied by supporting documents indicating an obligation to transfer payment in foreign currency within 180 days from the date of deposit in compliance with Bank of Thailand's regulation
• For corporate account incorporated overseas; all reference documents must be notarised by a competent notary public and certified by Royal Thai Embassy, Royal Thai Consular-General, or the Ministry of foreign Affairs of Thailand
• Tax identification (only for resident account)

4. Foreign Embassy, Mission, Consulate and International Organization Account

• An official note from the Ambassador, or Charge' d'Affaires, or head of International Organization, or Diplomatic Mission signed and sealed by Ambassador, Charge' d'Affaires, or Secretary-General of the respective International Organization, indicating its intention to open foreign currency account
• All reference documents from foreign embassies, Diplomatic Missions, Consulates, or International Organisations must be cerfified by Royal Thai Embassies, Royal Thai Consular-General, or the Ministry of Foreign Affairs of Thailand

 

Initial Deposit

• USD 5,000.00(USD five thousand only) or equivalent, except for Corporate account incorporated in Thailand

 

Maintenance Fee

• Maintenance fee charged at USD 50.00 per annum on non-active account

 

Deposit Commission

• Banknote : 0.50 % commission in lieu of exchange
• T/T, Swift, Export Bills, and Foreign Bill: Free of charge

 

Withdrawal Commission

• D/D, T/T, Swift 0.125% minimum USD 10 plus communications expense Baht 500 (in case of effect in full amount: our charge USD 10 for USD currency, and USD 15 equivalent for other currencies)
• Import settlement: 0.25% flat
• T/C 0.125% minimum USD 10, plus 1% and Baht 3 stamp duty
• Banknote 0.50% commission in lieu of exchange
• Convert into Thai baht free of charge

 

Foreign Bills for Collection

• Collection charge : USD 10, Plus foreign bank charge
• Return cheque : additional foreign bank charges

 

Interest Rate

• Interest rate as periodically appears in the bank announcement and subject to change from time to time
• Saving A/C : Interest is calculated daily and paid of a half-yearly basis
• Time A/C ; rates are accepted for a period of 3, 6 and 12 month

Important Notice:

• Deposit and withdrawal from these accounts are subject to Bank of Thailand's regulations.Withholding tax will be debited from the account in account in accordance with the government regulations.
• The above information is subject to change without prior notice.
• For further information, please contact nearest any UOBT brances, or the FCD Section, International Trade Services and Remittance Devision, the firsth floor, 690 UOB Bldg., Sukhumvit Road, Bangkok 10110: telephone 0-2620-5127-34

[trd]

Expatoilworker, most expats who don't have a work permit won't be going to UOBT for a foreign currency account. At Krungsri it's not required, only your passport, nothing else, not even proof of address.

 

 

[cnx355]

On 1/17/2018 at 3:38 PM, hobobo said:

You can.

A friend of mine did use a FCD account from Krungsri Bank  in Chiangmai for retirement but it took a letter from the bank in Thai language to explain to the Immigration officer that there is no bank book, but only a monthly statement, for  Krungsri Bank  FCD account.

It seem some officers do not know that not all account have bank book.

Edited January 19, 2018 by cnx355
correct and add information

[hobobo]

1 hour ago, cnx355 said:

A friend of mine did use a FCD account from Krungsri Bank  in Chiangmai for retirement but it took a letter from the bank in Thai language to explain to the Immigration officer that there is no bank book, but only a monthly statement, for  Krungsri Bank  FCD account.

It seem some officers do not know that not all account have bank book.

I never had a problem in Jomtien, been using FCA for Immigration for over 5 years. I guess it depends, like many other things, on the IO on duty

[madisongy]

Very helpful info here.   Was totally unaware of the charges related to holding some dollars in an account here. Was all set to open a BK Bank account, until I saw this thread and checked their fees.  Apparently 1 percent to deposit cash, and another percent to pull it.   

I'd previously used my US Citi account ATM to pull baht at a very favorable exchange rate.   Better than the currency exchanges.   Then, I switched the account to a less premium one, and it was a 27 fee for every withdrawal.   Looks like I need to open the Schwab account with the ATM.....apparently zero fees.

 

[mstevens]

I looked in to opening a foreign currency (USD) account at a bank here in New Zealand some years ago.  What surprised me was that the bank informed me that If I wished to withdraw the funds in cash it could only be done in NZD.  The balance would be listed as USD and I could send USD to another account, be it here in New Zealand or overseas, as USD.  But if withdrawing cash from the account it would be in NZD.  When I questioned this, it was explained to me that foreign currency accounts were mainly held by businesses hedging against currency movements (the New Zealand dollar does bounce around a lot).

 

I have no idea about foreign currency accounts in Thailand, but I would suggest you check this out first as the account may not offer you the facility you're looking for.  Also, the interest rates were virtually nothing and the fees were relatively high.  Again I am talking about a foreign currency account in NZ but it would not surprise me if this was the case elsewhere too.

[ExpatOilWorker]

12 hours ago, madisongy said:

Very helpful info here.   Was totally unaware of the charges related to holding some dollars in an account here. Was all set to open a BK Bank account, until I saw this thread and checked their fees.  Apparently 1 percent to deposit cash, and another percent to pull it.   

I'd previously used my US Citi account ATM to pull baht at a very favorable exchange rate.   Better than the currency exchanges.   Then, I switched the account to a less premium one, and it was a 27 fee for every withdrawal.   Looks like I need to open the Schwab account with the ATM.....apparently zero fees.

 

I can't open the pdf attachment and I don't pay any fees on my foreign currency account, so what fees and which bank are you referring to?

Edited April 10, 2018 by ExpatOilWorker

[ChiangMaiLightning2143]

Can I suggest that if you want to hold a foreign currency account take a trip to Singapore and open one with HSBC when I opened mine 10 years back the requirement was to deposit $60,000 US and to maintain at that level . I don’t know what the amount is today . I did mine in one day was given credit / debit cards I wouldn’t hold a Foreign currency account in Thailand getting money out of the country is a bloody nightmare I have already experienced it and promised myself never again [emoji41]

Very easy to send an international wire from my Bangkok Bank branch,what’s the problem?

[topt]

5 hours ago, ExpatOilWorker said:

and I don't pay any fees on my foreign currency account, so what fees and which bank are you referring to?

Seems pretty clear to me? If you don't deposit or withdraw cash then you only pay standard transfer fees...

17 hours ago, madisongy said:

Was all set to open a BK Bank account, until I saw this thread and checked their fees.  Apparently 1 percent to deposit cash, and another percent to pull it.

 

[madisongy]

On 4/9/2018 at 7:29 PM, ExpatOilWorker said:

I can't open the pdf attachment and I don't pay any fees on my foreign currency account, so what fees and which bank are you referring to?

 

My objective was to find a bank to deposit and withdrawal USD in cash. USD in, USD out.   1% for cash both in and out.   Quarter point for withdrawal if transfer in was electronic.     Maybe I'm misinterpreting this fee schedule??

 

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/ForeignCurrencyAccount/Pages/FCDFees.aspx

[ExpatOilWorker]

5 hours ago, madisongy said:

 

My objective was to find a bank to deposit and withdrawal USD in cash. USD in, USD out.   1% for cash both in and out.   Quarter point for withdrawal if transfer in was electronic.     Maybe I'm misinterpreting this fee schedule??

 

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/ForeignCurrencyAccount/Pages/FCDFees.aspx

I pay 0.5% for cash USD withdrawal, but you can get around that fee by converting into Thai baht free of charge, then walk to the nearest Super Rich and exchange to USD. 

[simoh1490]

3 minutes ago, ExpatOilWorker said:

I pay 0.5% for cash USD withdrawal, but you can get around that fee by converting into Thai baht free of charge, then walk to the nearest Super Rich and exchange to USD. 

I haven't done the math but it seems to me that your conversion from USD to THB and then THB back to USD probably costs you around 0.5%.

[ExpatOilWorker]

1 hour ago, simoh1490 said:

I haven't done the math but it seems to me that your conversion from USD to THB and then THB back to USD probably costs you around 0.5%.

SuperRich buy/sell rates today: 31.09/31.14

 

When exchanging in excess of $10K the bank will give 0.05 less than the SuperRich buy rate, so

 

$10K => 310,400 => $9,967.89 or 0.32%  transaction cost

Edited April 15, 2018 by ExpatOilWorker

[jerry921]

I'm trying to think of situations in which such an account would be useful for an individual. Is this all about the account requirement for retirement/marriage extension of stay or are there reasons for wanting an FCA apart from Thai visa rules?

 

The OP gave an instance of wanting to keep money out of the EU/UK but expect to use it later in the EU/UK and not wanting to have exchange rate risk. That doesn't seem to me like a very common need - maybe in the case of a divorce or some other financial dispute? Is the point keeping the money out of the EU/UK or keeping it in Thailand (but not in Baht)?

 

Given that you are sticking the money in an account that bears little interest, I should think the inflation risk would be something to consider. Wouldn't it be better to have a bank account in one of those tax haven islands and buy a bank CD?

 

I don't know about european/UK laws, but for a US person I can't think of a reason why a FCA would be better than a US domestic banksavings account. With the FCA you'd have to do all the FINRA reporting and the interest (what little there is) would still be taxable. I'm figuring the money in an FCA wouldn't really be out of reach of the US authorities if they wanted to come after you for some financial judgement.

 

If someone not from the US wanted to keep money in USD I can see that an FCA is easier than trying to open a US bank account - but I can't see the point in wanting to be in USD except as a currency speculation.