Large amounts - Safe places/accounts to use?

[lkn]

On 8/6/2018 at 9:16 AM, janclaes47 said:

Then why lower the guarantees if those banks are so trustworthy ?

Banks are trustworthy in the sense that they are not going to steal the OP’s 4 million.

 

The insurance is incase the bank defaults on its liabilities. The chance of this happening is probably rather low, but it is not zero, therefore it is not free to insure every single depositor at 15 million baht, and someone has to pay for this.

 

As mentioned earlier, the guaranteed amount was increased after the 1997 financial crisis, but most likely, the fee for the insurance was not increased proportionally, so the banks are probably paying too little for what it should cost to insure their depositors.

 

Therefor either the price should go up, or the insured amount should go back down. Given that one million baht is already quite a lot to have in cash for most Thais, the most sensible would be to lower the amount insured.