Investment in Thai Lottery "Fund" through a bank

[CrossBones]

A friend was telling me that you could invest in a fund which gets you entries into the lottery.

You don't lose the initial investment at all. And you are automatically entered into the lottery many tickets every week.

On average you get 1 percent return per MONTH. And you stand a chance to win a lot more (ok very slim chance)

 

Does anyone know anything about this? What bank is it? (or perhaps she was wrong and its a government scheme) Does it work and is it safe?

 

Alternatively im looking for a simple fund with monthly return pegged to the SET exchange. Someone said there was one that paid 1 percent a month too but I dont believe it, so whats available? 

Edited February 24, 2018 by CrossBones

[TerryLH]

Omsin Government Bank   (Google 'omsin bank lottery')

 

Terry

[jackdd]

https://www.gsb.or.th/lotto/lottery/สลากออมสนพเศษ-3-ป.aspx?lang=en-US

I don't really understand how it works, can somebody explain it?

[blackcab]

You go to the bank and deposit a fixed amount: 5,000, 50,000, 100,000, 500,000 up to 5,000,000 baht. The amount can differ from the above, but it has to be a round number, based on each ticket costing 50 baht. You can buy 100 tickets for 5,000 baht or 10,000 tickets for 500,000 baht, for example.

 

At the same time you will open a savings account where your winnings will be deposited. Winnings are deposited on the 17th of the month. Interest on any amount in the savings account is paid biannually on 30th June and 31st December.

 

You are given a card to show ownership of the lottery account (you don't actually get thousands of tickets), and a passbook for the savings account.

 

The draw takes place monthly on the 16th of the month. Winnings are automatically credited to your savings account the next day. Any wins over 5,000 baht and you get a postal notification.

 

The lottery ties up your money for 3 years. At the end of the 3 years you take your card to the bank and they immediately transfer the principal sum into your savings account. At this point you can reinvest in the lottery if you want to.

 

Warning: You will not receive notification the ticket has expired. It is up to you to redeem it. If you don't, you will not be paid any future prizes because the 3 year fund has expired.

 

The overall interest is calculated on the volume of tickets you buy. This is because if you purchase, for example, 10,000 tickets, you will be guaranteed a fixed number of small wins simply due to the statistics of how the lottery is drawn.

 

Attached is a current lottery card with 10,000 tickets costing 500,000 baht, and the corresponding savings passbook that was opened on the same day so you can see the winnings and interest.

 

After 2 years there is about 22,000 baht from 500,000 baht deposited, mainly due to one win of 10,000 baht.

[HatYai2]

Is this open to everyone? Can one invest in increments or only once off?

[jackdd]

So if i understood it correctly: You deposit a specific amount of money (let's say 500k THB) on a fixed term savings account for 3 years, in return you get "virtual lottery tickets".

The winnings of these lottery tickets is the "interest rate" that you get.  They guarantee that you will get at least 1.12% interest on 500k THB.

Blackcab got slightly more than 2% "interest" per year in the first 2 years.

[Bob12345]

Knowing the Thai government lottery has a pay-out ratio of 60%, it becomes almost a certainly you lose 40% of your money when you play with enough tickets for long enough.

i.e. when you buy all tickets for an upcoming draw, you are guaranteed to lose 40%.

 

So why would anyone want to do this?

 

 

11 hours ago, CrossBones said:

On average you get 1 percent return per MONTH. And you stand a chance to win a lot more (ok very slim chance)

Sounds extremely unlikely, as that would mean every company in Thailand can best sell all their assets and invest in this as it gives a better return.

[Bob12345]

2 minutes ago, jackdd said:

They guarantee that you will get at least 1.12% interest on 500k THB.

That sounds like a more likely return, 1.12% per year (and not per month).

[blackcab]

50 minutes ago, HatYai2 said:

Is this open to everyone? Can one invest in increments or only once off?

 

Open to anyone over 7 years old. You can invest multiple times, but each time is a new investment.

 

The 3 year period starts the day you invest, so it's not possible to 'top up' previous purchases.

 

To clarify, each purchase gets a new lottery card with different ticket numbers with an expiration date in 3 years time.

[HatYai2]

1 minute ago, blackcab said:

 

Open to anyone over 7 years old. You can invest multiple times, but each time is a new investment.

 

The 3 year period starts the day you invest, so it's not possible to 'top up' previous purchases.

 

To clarify, each purchase gets a new lottery card with different ticket numbers with an expiration date in 3 years time.

Thank you

[blackcab]

36 minutes ago, jackdd said:

So if i understood it correctly: You deposit a specific amount of money (let's say 500k THB) on a fixed term savings account for 3 years, in return you get "virtual lottery tickets".

The winnings of these lottery tickets is the "interest rate" that you get.  They guarantee that you will get at least 1.12% interest on 500k THB.

Blackcab got slightly more than 2% "interest" per year in the first 2 years.

 

Completely correct.

[blackcab]

40 minutes ago, Bob12345 said:

Knowing the Thai government lottery has a pay-out ratio of 60%, it becomes almost a certainly you lose 40% of your money when you play with enough tickets for long enough.

i.e. when you buy all tickets for an upcoming draw, you are guaranteed to lose 40%.

 

So why would anyone want to do this?

 

The principal sum invested is returned to you in full after 3 years. You received a guaranteed return for 3 years at the rate offered on the day you purchase. You may possibly get lucky and win a large prize, but like all lotteries this is statistically improbable.

 

You definitely don't lose 40 per cent of your investment. Like any fixed investment, you can lose if interest rates go up over the 3 year period, but that's not been happening lately.

 

I wish it would though.

[KKr]

2 hours ago, Bob12345 said:

Knowing the Thai government lottery has a pay-out ratio of 60%, it becomes almost a certainly you lose 40% of your money when you play with enough tickets for long enough.

i.e. when you buy all tickets for an upcoming draw, you are guaranteed to lose 40%.

 

So why would anyone want to do this?

 

 

Sounds extremely unlikely, as that would mean every company in Thailand can best sell all their assets and invest in this as it gives a better return.

does not look like this is the Thai Government Lottery at all.
More like an innovative long term funding scheme for the Bank that is organising this.
Interesting punt and as safe as other banks to put the retirement / marriage Visa Deposit

[jackdd]

5 minutes ago, KKr said:

Interesting punt and as safe as other banks to put the retirement / marriage Visa Deposit

But to have this money at a fixed term deposit account is afaik not allowed, because it has to be available all the time.

 

How much interest do other banks pay for 3 years fixed term deposit?

Edited February 25, 2018 by jackdd

[blackcab]

14 minutes ago, KKr said:

does not look like this is the Thai Government Lottery at all.
More like an innovative long term funding scheme for the Bank that is organising this.

 

The bank is 100 per cent owned by the Government - hence the name Government Savings Bank.

 

This is not the same lottery where you buy 80 baht tickets from itinerant sellers. The opetators are different, but the ultimate owner is the same.

[Brunolem]

2 hours ago, blackcab said:

 

Completely correct.

If I understand correctly, this system means that you actually play the lottery for free !

You never lose, you can only win...

 

Is that right?

 

Now, what about these "tickets"?

Say you get 10,000 tickets for a 500,000 baht deposit...how does it work?

Are the ticket numbers allocated randomly or can you chose?

Is an equal quantity of tickets randomly played at very draw (twice a month) or can you decide which tickets you are going to play at any given draw?

Can you play the same number many times?

 

Thanks for your input...

[lassebasse]

For me it was initially very confusing when this was called a "Lottery". Instead this a kind of Government Savings Bond where instead of interest your Bonds participate in a monthly drawing of Wins. Now that I understand this I only wonder if these "Loans" are listed. The value of the loan should vary over time and also vary according to the rate on deposits.

[blackcab]

51 minutes ago, Brunolem said:

If I understand correctly, this system means that you actually play the lottery for free !

You never lose, you can only win...

 

Is that right?

 

Now, what about these "tickets"?

Say you get 10,000 tickets for a 500,000 baht deposit...how does it work?

Are the ticket numbers allocated randomly or can you chose?

Is an equal quantity of tickets randomly played at very draw (twice a month) or can you decide which tickets you are going to play at any given draw?

Can you play the same number many times?

 

Thanks for your input...

 

It seems to me that you think this is the Thai state lottery where you buy 80 baht tickets from people on the street. It is not. Please read my earlier posts.

 

You don't get tickets. You get a consecutive series of, for example, 10,000 numbers. The start and end number are shown on your purchase slip. You cannot choose the numbers.

 

The draw is once a month, not twice a month. It is held on the 16th day of the month.

 

You play the same series of numbers every month for 36 months.

 

Can you lose? That depends on what the interest rate does while your money is locked away for 3 years.

 

[blackcab]

6 minutes ago, lassebasse said:

For me it was initially very confusing when this was called a "Lottery". Instead this a kind of Government Savings Bond where instead of interest your Bonds participate in a monthly drawing of Wins. Now that I understand this I only wonder if these "Loans" are listed. The value of the loan should vary over time and also vary according to the rate on deposits.

 

It's a 3 year deposit with a fixed, guaranteed interest rate. The only difference is you have a slim chance of winning a larger amount through the monthly draw.

[Sirbergan]

2 minutes ago, blackcab said:

 

It's a 3 year deposit with a fixed, guaranteed interest rate. The only difference is you have a slim chance of winning a larger amount through the monthly draw.

What is the top prize?

[blackcab]

8 minutes ago, Sirbergan said:

What is the top prize?

 

[khunPer]

It sounds like part of the interest is paid as a lottery draw – we had a similar type of account in Danish banks in the 1980'ies and 1990'ies, called "millionaire account", where the interest would be prices with a million Danish money in first price; however it was not that popular, so it took sometimes long time before there was a million to draw from general accumulated interest money. Based on the present annual fixed term interest rate in Thailand of about 1.5% p.a. – and a slightly higher fixed 3,6-month interest rate in Government Savings Bank – enough savers could make a lottery worth playing...

[Brunolem]

2 hours ago, blackcab said:

 

It seems to me that you think this is the Thai state lottery where you buy 80 baht tickets from people on the street. It is not. Please read my earlier posts.

 

You don't get tickets. You get a consecutive series of, for example, 10,000 numbers. The start and end number are shown on your purchase slip. You cannot choose the numbers.

 

The draw is once a month, not twice a month. It is held on the 16th day of the month.

 

You play the same series of numbers every month for 36 months.

 

Can you lose? That depends on what the interest rate does while your money is locked away for 3 years.

 

My bad...I indeed thought it was the state lottery...I didn't know there was another one...

 

How many digit long are these numbers? (Just to estimate the odds...)

 

[inThailand]

Is the drawing of the winning numbers transparent or behind closed doors? How many possible numbers are there, ie your odds of winning. 

This sound scammish and playing on the gambling culture here. 

[jackdd]

9 minutes ago, inThailand said:

Is the drawing of the winning numbers transparent or behind closed doors? How many possible numbers are there, ie your odds of winning. 

This sound scammish and playing on the gambling culture here. 

Just open the link that i posted on the first page:

3-year Special PSCs prizes are drawn monthly on the 16th of the month at GSB Head Office, which broadcasting on NBT and AM 891 MHZ by Radio Thailand, Public Relations Department during, 13.00 - 14.00 hrs. 

[blackcab]

2 hours ago, Brunolem said:

My bad...I indeed thought it was the state lottery...I didn't know there was another one...

 

How many digit long are these numbers? (Just to estimate the odds...)

 

There is one Thai character followed by 7 numbers. So for example:

 

ภ 1230000

 

The block of numbers I have got starts at 45xxxxx.

[Brunolem]

17 minutes ago, blackcab said:

 

There is one Thai character followed by 7 numbers. So for example:

 

ภ 1230000

 

The block of numbers I have got starts at 45xxxxx.

Well, if I remember my probabilities courses from long ago, the number of combinations of 7 digits out of 10 possible digits is 10x9x8x7x6x5x4x3 = 1,814,400

And then there are the 42 possible Thai letters, which gives us 1,814,400 x42 = 76,204,800 combinations!

The odds of winning are ridiculously small!

 

[blackcab]

10 minutes ago, Brunolem said:

Well, if I remember my probabilities courses from long ago, the number of combinations of 7 digits out of 10 possible digits is 10x9x8x7x6x5x4x3 = 1,814,400

And then there are the 42 possible Thai letters, which gives us 1,814,400 x42 = 76,204,800 combinations!

The odds of winning are ridiculously small!

 

Somebody wins the prizes every month. My son won 4th prize (10,000 baht). His great uncle won 2nd prize (1 million baht) and a friend's driver won 5 million baht, so it's not unheard of.

 

I do agree it's statistically improbable, however I do hope my son wins 1st prize  (10 million) as that would just about pay his school fees.

[Brunolem]

10 minutes ago, blackcab said:

 

Somebody wins the prizes every month. My son won 4th prize (10,000 baht). His great uncle won 2nd prize (1 million baht) and a friend's driver won 5 million baht, so it's not unheard of.

 

I do agree it's statistically improbable, however I do hope my son wins 1st prize  (10 million) as that would just about pay his school fees.

My calculation was only for the big prize.

Obviously the odds are better for the lower prizes, yet not too high.

Winning 1 million is great...on a 500,000 baht investment...what a return!

[chickenslegs]

5 minutes ago, blackcab said:

 

Somebody wins the prizes every month. My son won 4th prize (10,000 baht). His great uncle won 2nd prize (1 million baht) and a friend's driver won 5 million baht, so it's not unheard of.

 

I do agree it's statistically improbable, however I do hope my son wins 1st prize  (10 million) as that would just about pay his school fees.

If somebody wins the prizes every month, the draw must only include the numbers that have been issued (like the Premium Bonds draw in the UK -  but unlike the UK national lottery where unwon prizes are rolled over).

 

So, the odds may be far better than those calculated by Brunolem (albeit that his calculations are correct). 

 

Anyway, thanks to the OP and others who have explained this lottery. I have a sum of money set aside for my granddaughters future education - I am tempted to invest it with the GSB lottery.