The unfair Thai Banking system

[Sumarianson]

Should Bank officers be forced to wear a mask when robbing their customers?

 

If you have or are buying a condo in Thailand and you have or had to transfer the money from outside the country, then you will know to what I refer.

There are only two legal ways to bring the funds for a condo purchase into Thailand.

 

1. By transfer into a Thai Bank account.

 

2. By taking the cash in a bag and declaring it to customs and exchanging it in Thailand.

 

This looks very cosy for the Bankers who make Trillions from foreigners in exorbitant exchange margins and tranfer costs to boot.

Of course the government in ""collaboration" with the banks brought this method of transfer in for security reasons?

While we cannot use an FX company who would give a far better rate and would be able to choose the time and the rate.

I have looked into this with the FX department of Bangkok Bank and they will not set a rate for you or tell you what their margin is above the banking exchange rate. There is a reason for this, they are making a packet load out of foreigners and dont want you to realise it.

On average if you transfer £20000 to cover your retirement in Thailand. The bank will give you 30000 to 50000 less than you would get from Superrich if you went in with cash and they are already making a profit on the exchange. FX companies will give a similar rate to Superrich and will afford you the opportunity to set your rate to exchange and you can agree the spread.

However with the banks you have no chance, they are highway robbers in suits.

When you need to buy a condo your losses multiply exponentially. 5 to 100 million for a condo or a house. The profit for the banks, well you work it out.

 

So unless you want to risk taking a big bag of money into the country declare to customs on both sides and risk being robbed. Then you have to put up with being robbed by the banksters. I truly wonder what the government gets out of such a policy? Of course like any good confidence trickster they will smile as they do so, in the land of smiles.

Our funds especially the English pound have seen a 30% drop over the last few years, yet they still pursue this blatent policy of extortion.

Is anyone else frustrated and angered by this?

 

 

 

Sent from my SM-G935F using Thailand Forum - Thaivisa mobile app

 

 

[topt]

1 hour ago, Sumarianson said:

Is anyone else frustrated and angered by this?

No - it has always been like this - doesn't make it right but it is what it is.

 

I know most western countries do not have a similar requirement for funds when buying a property but otherwise many western banks often take far more onerous fees/commissions on FX. 

 

I also suggest that bringing in western currency  downward movements vs. the baht is also completely irrelevant to your argument - unless you are just having a general whinge............. 

 

 

[Ks45672]

Just don't buy any property, its a headache when rent is so cheap

 

Bring in your cash and change it where you get the best rate

[yankee99]

13 hours ago, Sumarianson said:

 On average if you transfer  £20000 to cover your retirement in Thailand. The bank will give you 30000 to 50000 less than you would get from Superrich i

We know this isnt true 

[Dazinoz]

I just transferred $aud2000 from The Commonwealth Bank in Australia. I always transfer $aud. For the first time I received a warning that I should only transfer in THB (in this case). I wrote down what I would get doing that way then transferred in $aud. I ended up with over 2000 baht more than if I had have sent THB.

 

So, yes the banks here maybe running their business at a high cost to customer but not ripping you off as much as other country banks. And if I go back for a visit I bring a wad off cash back and exchange at Superrich as needed. Better rate than banks.

[hobz]

Capitalism is supposed to solve this through competition.. if a bank can make 50000 on a transfer there is plenty of room for competition.. but Banks don't compete with each other. Pretty sure it's illegal but good luck proving it.. and it goes for all banks in the world from my experience.

[inThailand]

Buying a condo is an one off transaction, you should be more upset about regular transfers of money to here or the ATM fees. 

[simoh1490]

What a load of absolute nonsense!

 

Of course Superich gives a better exchange rate than banks, Superich doesn't have to support a branch and ATM network nor offer full-service banking along with all the products banks offer, all they have to do is exchange currencies from walk in customers, how labour intensive and costly can that possibly be!

 

And why will big banks not fix an exchange rate in advance? It's called the FOREX market where rates change every second, try going to the market and fixing a rate on the price of apples two months from now and see what they say!

 

As for spreads and margins: Thai banks offer some of the most attractive currency spreads in the world, they are minuscule compared to some UK exchange rate.

 

And the government is in collaboration with the banks: of course they are, THB is a restricted currency, it's not freely convertible and BOT administers this policy although operational responsibility for it is delegated to the banks, it's a policy that couldn't be sustained if every panhandler was allowed to operate currency exchange companies in Thailand.

 

I'm sorry OP that you get charged for your FOREX transactions and that you can''t save as much money on them as you would like, fact is that consumers and businesses alike need the banking system to save money, buy products from, store their wealth, etc etc. You, on the other hand, seem to need only the cheapest currency exchange service possible and because you can't get that you cry conspiracy theory and coercion....grow up for gods sake!

 

 

[prakhonchai nick]

If from the UK, can you not use Transferwise to send money to a Thai bank?. Their rates are well above TT rates  in fact they use XE rate, and their charges are much lower than Thai banks

[simoh1490]

1 minute ago, prakhonchai nick said:

If from the UK, can you not use Transferwise to send money to a Thai bank?. Their rates are well above TT rates  in fact they use XE rate, and their charges are much lower than Thai banks

Can't get an FET using Transferwise, quite rightly too.

[simoh1490]

A transfer via the big banks, HSBC UK to a Thai bank costs four Pounds plus a recording fee on the Thai end of about 500 baht, in addition, for large sums, the Thai bank Treasury department will allow you to negotiate the exchange rate which is already one of the best around (TT rate). Where's the beef!

[MikeN]

OP, better check your arithmetic before you start whining about finance...right now there is 80 Satang difference between Superrich’s listed cash exchange rate and a TT transfer to BKK Bank, so on a 20000 pound exchange that is only 16000 baht difference, not the 50000 you claimed. Is 16000 baht going to make much difference when you are buying a multi million baht condo ?

 If you are just making a regular transfer for living expenses and do not need the exchange certificate why not use somebody like Transferwise, although in my experience with larger sums their sliding scale fees are worse than the fixed fee charged by my bank even though their publicized exchange rate is better.

 And if you think the local banks’ FX margin is unfair don’t ever try to deal with Australian banks !

[prakhonchai nick]

21 minutes ago, simoh1490 said:

Can't get an FET using Transferwise, quite rightly too.

Why "quite rightly too"?  Thai banks want "their cake and eat it!"

Currency exchange and the purchase of a condominium by foreigners

One of the requirements for foreign ownership under the Thailand Condominium Act (section 19) is that a foreigner has remitted into Thailand the full purchase price of the condo in foreign currency. The handling bank in Thailand must upon request issue an official copy of the FET-form (Foreign Exchange Transaction Form) or a prepare credit note and bank letter of guarantee containing the same information as the foreign currency exchange transaction reporting form as proof of the remittance and exchange of foreign currency into Thai baht by the foreigner.

 

There is a Thai handling bank involved when transferring via TRANSFERWISE!

[yankee99]

Superrich 42.65

Bkk bank 42.14

 

about 10,000 baht difference on £20,000

[Peterw42]

40 minutes ago, simoh1490 said:

Can't get an FET using Transferwise, quite rightly too.

I saw some guys posting in a pattaya facebook group the other day, adamant that they got a FET from transferwise. Apparently as easy as contacting them when you transfer, they generate an FET as the person being the "sender" into a Thai account.

 

Maybe rubbish but these guys appeared genuine.

[prakhonchai nick]

47 minutes ago, Peterw42 said:

I saw some guys posting in a pattaya facebook group the other day, adamant that they got a FET from transferwise. Apparently as easy as contacting them when you transfer, they generate an FET as the person being the "sender" into a Thai account.

 

Maybe rubbish but these guys appeared genuine.

Worth investigating for those in need.  A small charge would be perfectly acceptable.

[Thaidream]

When sending US Dollars to a Thai Bank- I usually get the TT rate. Also. if I use an ATM  in Thailand with a US Debit Card- the rate is  normally the TT rate.

 

The main irritation about Thai banks is the 220 Baht fee per ATM transaction and the limits banks put on the amount to be taken out. The limits are not for security but to make money for the banks on fees.

At one time- I used to bring in large amounts by travelers check in $500 denominations.  I could get them free of charge from my US bank and the single check fee was 33 Baht per check. A few years ago the Thai banking system raised the single check fee to 153 Baht per check ( 500% increase) and  the US bank got rid of the $500 check and dropped the limit to $100.00.  Again, all of this done to raise more monies for the banks.

 

As bad as the  Thai banks are- the worst example  was when I walked into a large American bank in Los Angeles and asked to change a $100 Bill and they refused because I didn't have an account with them.   Talk about piss poor customer relations.
T

[mike324]

I have to say Thai banks are pretty fair in regards to FX compare to western banks, which are the real rip off kings. But comparing Banks to Superich is like comparing apples to oranges. There are regulations in regards to how much money people can carry to prevent money laundering. Its the same in pretty much every country.

[Tchooptip]

My Thai bank, Krungsri, give me always a better change for Euro than HSBC in my country.

[Dazinoz]

3 minutes ago, mike324 said:

I have to say Thai banks are pretty fair in regards to FX compare to western banks, which are the real rip off kings. But comparing Banks to Superich is like comparing apples to oranges. There are regulations in regards to how much money people can carry to prevent money laundering. Its the same in pretty much every country.

My post having reference Superrich was a comment they pay more so I use them if I have cash. Wouldn’t you if you had cash. And when I do bring cash back I bring the legal amount without the need to declare. 

[mike324]

2 minutes ago, Dazinoz said:

My post having reference Superrich was a comment they pay more so I use them if I have cash. Wouldn’t you if you had cash. And when I do bring cash back I bring the legal amount without the need to declare. 

Yes, if I could I would also bring in the legal limit and exchange cash at super rich. But the OP complaining about banks vs FX companies like superrich, is still comparing apples to oranges. 

[Griffo63]

I don’t get the OPs point I’m afraid. I regularly transfer in £10000 from the UK. I use FC Exchange in London in the first instance. They give me an agreed rate for THB which is never more than 30 satang off the Superich HQ rate. They transfer it straight to my Bangkok Bank account. There is no charge from FCE on transactions over £10k and Bangkok Bank charge me 500 baht incoming charge - irrespective of incoming amount. Very cost effective in my option 

[Peterw42]

5 minutes ago, Griffo63 said:

I don’t get the OPs point I’m afraid. I regularly transfer in £10000 from the UK. I use FC Exchange in London in the first instance. They give me an agreed rate for THB which is never more than 30 satang off the Superich HQ rate. They transfer it straight to my Bangkok Bank account. There is no charge from FCE on transactions over £10k and Bangkok Bank charge me 500 baht incoming charge - irrespective of incoming amount. Very cost effective in my option 

The OP is basically blaming the Thai banking system for the low international value of his home country currency. 

[nahkit]

25 minutes ago, Griffo63 said:

I don’t get the OPs point I’m afraid. I regularly transfer in £10000 from the UK. I use FC Exchange in London in the first instance. They give me an agreed rate for THB which is never more than 30 satang off the Superich HQ rate. They transfer it straight to my Bangkok Bank account. There is no charge from FCE on transactions over £10k and Bangkok Bank charge me 500 baht incoming charge - irrespective of incoming amount. Very cost effective in my option 

In the case of the OP his point is having to transfer in sterling and change it into Thai baht following the transfer. In your case, you are changing sterling into Thai baht and then transferring it to Thailand. The OP doen't has the option to do this under the requirements for purchasing a condo in Thailand.

[simoh1490]

3 minutes ago, nahkit said:

In the case of the OP his point is having to transfer in sterling and change it into Thai baht following the transfer. In your case, you are changing sterling into Thai baht and then transferring it to Thailand.

The OP's point(s) are not about having to change his funds into Baht, he could keep them in Sterling if he wished. The OP's point is that he wants an FX company rate and the Thai banks won't give him one, for reasons already explained.

[simoh1490]

2 hours ago, prakhonchai nick said:

 

 

There is a Thai handling bank involved when transferring via TRANSFERWISE!

1

I didn't know that, thanks.

[nahkit]

3 minutes ago, simoh1490 said:

The OP's point(s) are not about having to change his funds into Baht, he could keep them in Sterling if he wished. The OP's point is that he wants an FX company rate and the Thai banks won't give him one, for reasons already explained.

The OP's point is about having to transfer funds into the country in Sterling in order to purchase a condo and thus not getting the exchange rates offered by FX companies. 

[simoh1490]

2 hours ago, yankee99 said:

Superrich 42.65

Bkk bank 42.14

 

about 10,000 baht difference on £20,000

I'm not sure about your numbers! The average GBP/THB exchange rate for TT's currently is 42.03, the average rate for notes is 41.79, on GBP20k that's a difference of less than 5k baht. And let's not forget the value associated with NOT having to carry 20k Pounds all the way from the UK to the back streets of Thailand.https://daytodaydata.net/

[nahkit]

If anyone really wants to have a moan about Thai banks they should look at the difference between the deposit interest rates on a regular savings account and the rates charged on a personal loan.

 

"Up to" 1.5% on a deposit account.

 

"From" 15% on a personal loan.

 

https://thailand.deposits.org/providers/bangkok-bank.html

[rak sa_ngop]

37 minutes ago, simoh1490 said:

I didn't know that, thanks.

Is there an additional charge by the Thai bank when transferring money from overseas using Transferwise?  This charge is normally about 500 baht when sending Sterling from abroad but as Transferwise money is sent internally as baht from a Thai bank to your receiving bank I assume such a charge does not apply and you receive the full quoted Thai amount?