/Featured Quiz4 October - Weekly Featured Quiz - General Knowledge

[jphasia]

Hello, I have an account with Krungsri Bank. A MTD saving account. I have a visa debit "all ATM card" an online banking.

I am not using this account much. Just deposit cash to benefit of the higher interest of this account (1.3% monthly). I never withdrawed any money on it and never used the debit card.

My understanding is they are charging 50 bahts per transaction (maybe after the 2 first transaction).

I want to if this applicable for only this type of account in Krungsri, or specific to this type of debit card? Or if this 50b per transaction is general rule for Krungsri bank?

I am using Bangkok Bank as main account but due to the change to Union Pay debit card, I might consider to focus with Krungsri as main bank. So I am wondering if I should consider to open a different type of account with them or maybe change the type of debit card.

If someone is using Krungsri Bank, you might have some answer for me.

 

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[Pib]

The Bt50 per withdrawal transaction (any kind of withdrawal at counter/card/ibanking) beginning the 3rd and above transaction (first 2 transactions are free) only applies to the MTD account since it pays almost 3 times the amount of interest of a typical savings account.  It not because of the debit card linked to the account.  If you don't want to pay any fee for "many" transactions per month then you need to open a regular savings account with debit card....of course a regular savings account pays only around 0.5% or less interest.

 

The MTD is meant to be a savings account you don't need to withdraw from frequently during the month...that's why they are paying a much higher interest rate.....you can still withdraw as many times as you want with no interest penalty like on a fixed account but you do start incurring a Bt50 withdrawal fee beginning at the 3rd withdrawal per month.

 

 

[jphasia]

The Bt50 per withdrawal transaction (any kind of withdrawal at counter/card/ibanking) beginning the 3rd and above transaction (first 2 transactions are free) only applies to the MTD account since it pays almost 3 times the amount of interest of a typical savings account.  It not because of the debit card linked to the account.  If you don't want to pay any fee for "many" transactions per month then you need to open a regular savings account with debit card....of course a regular savings account pays only around 0.5% or less interest.
 
The MTD is meant to be a savings account you don't need to withdraw from frequently during the month...that's why they are paying a much higher interest rate.....you can still withdraw as many times as you want with no interest penalty like on a fixed account but you do start incurring a Bt50 withdrawal fee beginning at the 3rd withdrawal per month.
 
 

Thanks for the confirmation, that was my understanding.Yes I originally open this account in Krungsri only to keep some amount with this interest with no intend to withdraw but as I wanted online banking, I think the debit card was mandatory.
Are you satisfied in general with Krungsri? I will probably open another account with them to use on regular basis instead of Bangkok Bank.

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[Pib]

Yes, very satisfied with Krungsri.  I only have a MTD account with them along with ibanking and debit card. I opened/use the MTD primary for my BIG emergency and annual retirement extension of stay money.  As you know it pays interest almost as good as a fixed account, no tax withholding until you exceed Bt20K interest earned per year unlike a fixed account where you pay tax on any amount of interest earned, Krungsri seems to truly appreciate my business at the branches I use, etc.  

 

But since I've been with Bangkok Bank for over a decade, I use my Bangkok Bank accounts for my everyday banking such as debit card, bill pay, etc.  However, I fully expect Krungsri or most any Thai bank would be just as good for everyday banking.   The only thing that sets Bangkok Bank apart a little "if you need to send money from U.S. banks" is Bangkok Bank is they are only Thai bank with "ACH" receiving capability which no other Thai bank has.  But Bangkok Bank's ACH capability is already being limited/impacted by U.S. Treasuring policy changes regarding use of ACH for international transfers so that ACH receiving capability is becoming less usable although it will still be very important to some folks who receive U.S. govt payment such as social security with make payment via ACH.  Plus money transfer services like Transferwise are talking away a lot of Bangkok Bank's ACH business.  The ACH receiving capability may not be important to you, especially if you have no U.S. bank accounts.

 

[jphasia]

Yes, very satisfied with Krungsri.  I only have a MTD account with them along with ibanking and debit card. I opened/use the MTD primary for my BIG emergency and annual retirement extension of stay money.  As you know it pays interest almost as good as a fixed account, no tax withholding until you exceed Bt20K interest earned per year unlike a fixed account where you pay tax on any amount of interest earned, Krungsri seems to truly appreciate my business at the branches I use, etc.  
 
But since I've been with Bangkok Bank for over a decade, I use my Bangkok Bank accounts for my everyday banking such as debit card, bill pay, etc.  However, I fully expect Krungsri or most any Thai bank would be just as good for everyday banking.   The only thing that sets Bangkok Bank apart a little "if you need to send money from U.S. banks" is Bangkok Bank is they are only Thai bank with "ACH" receiving capability which no other Thai bank has.  But Bangkok Bank's ACH capability is already being limited/impacted by U.S. Treasuring policy changes regarding use of ACH for international transfers so that ACH receiving capability is becoming less usable although it will still be very important to some folks who receive U.S. govt payment such as social security with make payment via ACH.  Plus money transfer services like Transferwise are talking away a lot of Bangkok Bank's ACH business.  The ACH receiving capability may not be important to you, especially if you have no U.S. bank accounts.
 

Thanks a lot for the details.
I am also very satisfied with Bangkok Bank too which is also my main bank. I have 3 accounts with them, 2 with Visa Debit and 1 with Union Pay. I don't have much issue in Thailand with Union Pay but it has never work for me outside Thailand. So far, it is fine because i can still use the others Visa debit from BB when I am outside Thailand but I am bit concerned if they totally stop Visa in the future...
I also have an SCB account but I am not very happy with the branch where I opened the account so I am not using it much.
Even if I move to Krungsri as main bank, I will still keep my Bangkok Bank accounts as I also have 2 credit cards with them. Apart from using the debit cards to withdraw cash from abroad, i mostly do all my transactions (payments, transfer...) online and ibanking is doing fine for me.

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[jphasia]

Just one more question: what is the amount (%) of the tax withholding when you exceed 20k interest on the MTD account?
So, I managed to leave not more than 1.3M on this account to avoid the tax but I am considering to put more if the tax is not harming much.
BTW, i opened this week another account in Krungsri bank. When I asked, i got the usual question if I have a work permit, which I don't have as I am not working in Thailand, but as soon as theu saw my Non O 1 year and the bank book of my MTD from Bangkok Bank (I opened the 2nd one in Phuket as I leave in Phuket), they became very friendly and opened immediately a basic saving account with a debit Visa Card ( Jad Hai) which I can withdraw cash from any ATM without fees apparently. All link to my ibanking.
They even offer to give me Credit Cards immediately which I told them I might consider later as I already have 3 credit cards from other banks.
At the meantime, while I was in my Bangkok Bank branch, they confirmed me that they will issue Master Card debit soon, in addition to the Union Pay. Only that they can't confirm the date yet.

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[Pib]

When you exceed Bt20K interest earned per year a 15% withholding tax is deducted.   This applies to aggregate interest earned across multiple MTD accounts.  By that I mean if you have "one" MTD account if you earn more than Bt20K interest on that one account they apply a 15% withholding tax.  Or if you have "two" MTD accounts and say earn Bt9K interest on one and Bt10,001 on the second account, that total Bt20,001 aggregate interest earned so they would apply 15% withholding tax on interest earned on both accounts  

 

Up to a couple years a person could avoid the 15% withholding tax on large balances/interest earned simply by opening multiple MTD accounts....keeping the interest earned on each individual account at/below Bt20K interest earned.  In fact, some branches would  suggest to you to do it that way.  But the govt tax folks caught Krungsri and other banks doing this type of stuff so the multiple accounts won't help you now.

 

So, if you want to avoid needing to file for tax refund with the govt to get that 15% withholding tax back just watch the total interest you are earning with your multiple Krungsri MTD accounts....keep the interest earned at or below Bt20K.

 

Good to hear another person say Bangkok Bank is also going to come out with a Mastercard debit card.  My Bangkok Bank "Visa" cards are still good for another couple of years based on the card's expiration date but there is also a note on the Bangkok Bank webpage that the Visa card debit card will only be good thru 2019.  Don't know which is correct.  But if they come out with a Mastercard debit card a person could get to replace the Visa cared then that should be fine, "unless" Bangkok Bank makes it a premium/special type of debit card that requires a high annual fee like how some debit cards that come with insurance or other possible discounts/stuff you would (or could) rarely use.

 

Edited October 26, 2018 by Pib

[jphasia]

Thanks PIB.
So if reach 20,000 interest, they will deduct 3,000 (15%). 20,000 interest might be around 1.5M funds in the MTD.
So let's say that I have another 1.5M sitting in a saving account in Bangkok Bank which give me 0.5% or less interest and I move this additonal 1.5M to my MTD, I might expect after one year around 6,000 deducted for the tax, which will leave me with net interest of around 34,000? Even with this 15% tax deducted, it is still better than living this money in standard saving account with 0.5% or less interest?

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[Pib]

Oh yea, it's almost three times the interest of regular savings account.  If you don't want to incur the 15% tax withholding (which you can get back by file a refund request with the Thai govt each year between 1 Jan-31 Mar) then just watch/adjust your balance to where it does not earn more that Bt20K interest from 1 Jan-31 Dec each year.

[jphasia]

On 10/26/2018 at 2:56 PM, Pib said:

Good to hear another person say Bangkok Bank is also going to come out with a Mastercard debit card.  My Bangkok Bank "Visa" cards are still good for another couple of years based on the card's expiration date but there is also a note on the Bangkok Bank webpage that the Visa card debit card will only be good thru 2019.  Don't know which is correct.  But if they come out with a Mastercard debit card a person could get to replace the Visa cared then that should be fine, "unless" Bangkok Bank makes it a premium/special type of debit card that requires a high annual fee like how some debit cards that come with insurance or other possible discounts/stuff you would (or could) rarely use.

it has probably been already posted but I just had a look at the Bangkok Bank website and they are advertising MasterCard debit (Be 1st smart card TPN MasterCard) to be available from 5th November