Extra deposits on a fixed deposit account ?

[MikeN]

I have been thinking about putting my 800,000 visa money into a fixed deposit account, and while researching that on a couple of bank websites they mention extra deposits. Back home, a fixed deposit account is just that ....a fixed amount for a fixed time, although you can usually get your money out early if you don’t mind losing the interest accrued.

So how does it work here, if I put the 800k into a 12 month fixed deposit and then find myself some spare cash 3 months later and put that in as well, does that new money become another separate deposit for 12 months but with the same account number and passbook ? Or is it added into the original 800k and all rolled over together when the 12 month term is up ? Or what ?

Edited February 18, 2019 by MikeN

[allane]

Over the years, I have had fixed-term deposits at three different Thai banks.  All have had the same structure; you can walk in any day, deposit some money, and that starts a new term deposit with the same time limit as the others in that account.  It does not affect the maturity date of any other deposit(s) in that account. Same bank book, same account number.

If, for example, you already have a 6 month account, and decide that you also need a 3 month account, you will be given a second bankbook with a different account number.

[KittenKong]

1 hour ago, allane said:

If, for example, you already have a 6 month account, and decide that you also need a 3 month account, you will be given a second bankbook with a different account number.

With CIMB I have just one TD passbook but all different deposits are listed in it, with different maturity dates and interest rates. I seem to remember that TMB did it that way also.

[cnx355]

Interesting question : As  400,000 B part of the 800,000 B deposit can not be used during the year, can the 400,00 B be in a separate account that you can not use before the end of the term deposit.?

 

Immigration state that the deposit  must be available in one rule , and then the add a new rules that 400,000 B can not be used otherwise invalidating  the extension. ???

Edited February 19, 2019 by cnx355
add to the text

[KittenKong]

Jomtien Immigration does accept multiple accounts for the deposit. Some other offices may have their own rules.

 

There is a big difference between something being available to be used, and it actually being used. My 800k deposit is always available to me but I havent touched it for years.

[Pib]

When I was doing Bangkok Bank fixed deposit accounts several years ago I never added after opening a fixed account.  When a fixed account matured I would go in and pick a new one to roll all the money into.  Like say a 7 month 2% fixed matured and a 12 month 2.5% was the best fixed at the time I would just roll all the money into that 12 month 2.5%. 

 

But Bangkok always closed the old account and opened a new account for the new fixed account (i.e., new account number...old fixed account passbook stamped closed)....I never got to keep the old account number. 

 

Now maybe that was because the type of fixed accounts I was in were promotional accounts paying higher than normal interest for the same term....like say instead of a 6 month term paying 1.5% if you opened by date XYZ when the promotion ended they gave the 6 month term at 2%.   

 

Just best to read the fine print of every fixed account as I'm sure they vary from bank to bank....and promotional rates may have more fine print.

[huainnews]

   Two years ago immigration were not happy because the date on the letter from my bank was different to that in my fixed rate account.

   I went back to my bank, depoited 100 baht in the account, got a new letter with the same date then back to immigration, everything OK!

 

[Aforek]

18 hours ago, KittenKong said:

With CIMB I have just one TD passbook but all different deposits are listed in it, with different maturity dates and interest rates. I seem to remember that TMB did it that way also.

Same with SCB

[Thailand J]

18 minutes ago, Aforek said:

Same with SCB

Bangkok Bank will issue a new book if the interest rate on the new money is different.

You will have a new account number. Brilliant.

Another account to report on FBAR form.

 

If the interest is the same, the new deposit will not be mixed with the previous , it will has it's own maturity date, shown in the same book.

Edited February 19, 2019 by Thailand J

[ToddinChonburi]

GSB gives you a different account and pass book every time.

[Pib]

16 minutes ago, Thailand J said:

Bangkok Bank will issue a new book if the interest rate on the new money is different.

You will have a new account number. Brilliant.

Another account to report on FBAR form.

 

If the interest is the same, the new deposit will not be mixed with the previous , it will has it's own maturity date, shown in the same book.

But if the interest drops just because a higher promotional rate rate expired (i.e., account matured), the interest rate the account "automatically" rolled over to (surely a lower, non-promotional, regular interest rate) will show.  That has happened to me before when I was tardy in getting going to my Bangkok Bank branch bank to pick a new promotional fixed account to roll my money into.

[TigerandDog]

Why would you consider a fixed term deposit? here a some reasons to reconsider this option:

1. The interest is automatically taxed at 15%

2. You need to submit a tax return to get the tax refunded. Usually 100% as it is your normally the only income in Thailand for most farangs.

3. TMB have a No-Fixed account, which offers the same interest rate as their FD a/c's, and no tax deducted from the interest.

4. TMB do not issue a debit card for this account, even though the funds are at call. I use an everyday savings account with TMB & the No-Fixed account. When I need to withdraw funds from the No Fixed account I do an online transfer to the everyday savings account and then withdraw from that account at an ATM using my debit card. Any funds being budgeted for annual expenses are transferred to the Non Fixed account so they can also earn some interest. The everyday account has NO interest, and the debit card is also fee free.

5. Using the 2 accounts in #4, if I have 5 or more transactions per month in the everyday savings account I get an extra 0.3% interest for the following month on the Non Fixed account.

6. Again using the 2 accounts in #4, it is not necessary, as it would be with a fixed term account, to obtain a statement from your bank each December showing how much interest was paid and how much tax was deducted, so you could then go to your local Revenue Office between Jan - Mar to lodge a tax return and receive the tax deducted back.

[khunPer]

23 hours ago, MikeN said:

So how does it work here, if I put the 800k into a 12 month fixed deposit and then find myself some spare cash 3 months later and put that in as well, does that new money become another separate deposit for 12 months but with the same account number and passbook ?

Yes, each deposit works as a special agreement for the fixed term; i.e. if you deposit 800k baht today, the term is 19th februar 2020 where your interest will de added. If you also deposit some fund for example March 1st, then that fixed period will terminate March 1st 2020.

 

Concerning the 800k baht deposit in a fixed account, the easy way is to keep that balance clean – i.e. keeping 800k baht only and withdraw the annual interest – and keep all other savings in separate account(s).

 

I've been using that method for many years, and it works very well, and the immigration officers are happy, as they don't need to calculate anything; and I'm happy, because I don't need to worry about my deposit.

 

At the moment you can get 1.5% p.a. (or more) that after withholding tax ends up with 1.275% p.a. or 10,200 baht interest of 800k baht 12-month fixed deposit.

????

[khunPer]

2 hours ago, Thailand J said:

Bangkok Bank will issue a new book if the interest rate on the new money is different.

You will have a new account number. Brilliant.

Another account to report on FBAR form.

Only if you use promotion accounts with special rate.

 

A normal fixed deposit of for example 12-month term remains in the same bank book, but for each term period the interest rate might change over time. Same with SCB, K-Bank and Government Savings Bank (I talk from many years experience)...????

[moontang]

1 hour ago, TigerandDog said:

Why would you consider a fixed term deposit? here a some reasons to reconsider this option:

1. The interest is automatically taxed at 15%

2. You need to submit a tax return to get the tax refunded. Usually 100% as it is your normally the only income in Thailand for most farangs.

3. TMB have a No-Fixed account, which offers the same interest rate as their FD a/c's, and no tax deducted from the interest.

4. TMB do not issue a debit card for this account, even though the funds are at call. I use an everyday savings account with TMB & the No-Fixed account. When I need to withdraw funds from the No Fixed account I do an online transfer to the everyday savings account and then withdraw from that account at an ATM using my debit card. Any funds being budgeted for annual expenses are transferred to the Non Fixed account so they can also earn some interest. The everyday account has NO interest, and the debit card is also fee free.

5. Using the 2 accounts in #4, if I have 5 or more transactions per month in the everyday savings account I get an extra 0.3% interest for the following month on the Non Fixed account.

6. Again using the 2 accounts in #4, it is not necessary, as it would be with a fixed term account, to obtain a statement from your bank each December showing how much interest was paid and how much tax was deducted, so you could then go to your local Revenue Office between Jan - Mar to lodge a tax return and receive the tax deducted back.

200 words, yet no mention of interest rate.  TMB is never near the top.  The higher rates more than make up for the withholding, which is easily refundable, and how to get it has been beaten to death on TVF.

 

Krungsri offers the same account at 1.3%, which is likely higher than TMB, but some of us nearly doubled that with CIMB.

Edited February 19, 2019 by moontang

[Pib]

2 hours ago, moontang said:

200 words, yet no mention of interest rate.  TMB is never near the top.  The higher rates more than make up for the withholding, which is easily refundable, and how to get it has been beaten to death on TVF.

 

Krungsri offers the same account at 1.3%, which is likely higher than TMB, but some of us nearly doubled that with CIMB.

My understanding of TMB accounts TigerandDog talked about is 1.3% on the Fixed account and 0% on the Nn-fixed account (All Free Account).   TMB seems to market this as a tag team, combo type of accounts.

 

Of course since that All Free account is not paying any interest it's able to give some other benefits like free ATM withdrawals, transfers, bill pay, etc.  So, the TMB Fixed account is paying 1.3% just like the Krungsri Mee Tai Dai (MTD) account.   And I notice the Fixed Account allows two fee free transfers per month then the 3rd and up there is a Bt50 fee--same, same as the Krungsri MTD.   The All Free account does come with a Debit card with annual fee of Bt350 but that fee can be waived if using the card to spend/purchase at least Bt15K throughout the year.

 

But if using that TMB non-fixed account at least five times during the month they will pay an extra 0.3% on top of the 1.3% fixed account for a total of 1.6%.  Now the TMB non-fixed account interest is only paid twice a year (in Jun and Dec) whereas the Krungsri MTD pays interest monthly.

 

Now regarding any withholding tax I can't find where this TMB Fixed account which is really a "hybrid" account talks about tax one way or another....maybe it does on their website and I just can't find it.  But I expect it's the same as the Krungsri MTD account where no tax is withheld until exceeding Bt20K interest earned per year per Thai tax law.

 

 

 

 

[moontang]

14 minutes ago, Pib said:

My understanding of TMB accounts TigerandDog talked about is 1.3% on the Fixed account and 0% on the Nn-fixed account (All Free Account).   TMB seems to market this as a tag team, combo type of accounts.

 

Of course since that All Free account is not paying any interest it's able to give some other benefits like free ATM withdrawals, transfers, bill pay, etc.  So, the TMB Fixed account is paying 1.3% just like the Krungsri Mee Tai Dai (MTD) account.   And I notice the Fixed Account allows two fee free transfers per month then the 3rd and up there is a Bt50 fee--same, same as the Krungsri MTD.   The All Free account does come with a Debit card with annual fee of Bt350 but that fee can be waived if using the card to spend/purchase at least Bt15K throughout the year.

 

But if using that TMB non-fixed account at least five times during the month they will pay an extra 0.3% on top of the 1.3% fixed account for a total of 1.6%.  Now the TMB non-fixed account interest is only paid twice a year (in Jun and Dec) whereas the Krungsri MTD pays interest monthly.

 

Now regarding any withholding tax I can't find where this TMB Fixed account which is really a "hybrid" account talks about tax one way or another....maybe it does on their website and I just can't find it.  But I expect it's the same as the Krungsri MTD account where no tax is withheld until exceeding Bt20K interest earned per year per Thai tax law.

 

 

 

 

I actually looked it up, and thanks for explaining that up to 1.6% rate, it wasnt totally clear on the rate sheet I looked at.  Not terrible, but not great...TMB was nasty in CM...but many do fine there.  CIMB offers the best ATM card in LOS and possibly all of ASEAN.  Free the first year..then 100 per year.

[MikeN]

4 hours ago, khunPer said:

Yes, each deposit works as a special agreement for the fixed term; i.e. if you deposit 800k baht today, the term is 19th februar 2020 where your interest will de added. If you also deposit some fund for example March 1st, then that fixed period will terminate March 1st 2020.

 

Concerning the 800k baht deposit in a fixed account, the easy way is to keep that balance clean – i.e. keeping 800k baht only and withdraw the annual interest – and keep all other savings in separate account(s).

 

I've been using that method for many years, and it works very well, and the immigration officers are happy, as they don't need to calculate anything; and I'm happy, because I don't need to worry about my deposit.

 

At the moment you can get 1.5% p.a. (or more) that after withholding tax ends up with 1.275% p.a. or 10,200 baht interest of 800k baht 12-month fixed deposit.

????

Yes, I was thinking that it would be best to keep the 800k separate and make it easy for Officer Somchai, that’s why I was curious about Bangkok Bank saying you could add funds to a fixed deposit. I am used to getting a new account number for each different fixed deposit back home so I couldn’t understand adding funds, especially by ATM or mobile banking, couldn’t see how that would work.

[Pib]

The above TMB tag-team type account don't seem bad as all, especially the hybrid fixed account portion.  Equal to or probably a little better interest-rate wise than the Krungsri MTD account. 

 

But reading many ThaiVisa posts over the years TMB generally does not seem as expat-friendly as most other Thai banks....not to imply other Thai bank a super-duper expat friendly.  And the TMB website is not English friendly.  Yes, they have a English or Thai language selector but not much seems to change when when switching between them...you can still see Google Translate kicking into translation mode even when selecting TMB English language selection and a lot of things stay in Thai.   This can make it hard in trying to figure out general info and fine print regarding their various accounts.    

 

TMB is probably a fine bank, but I just haven't been interested in their offerings because their website is weak on English....weaker than most other Thai bank websites.  Kinda like a house for sale having "curb appeal" or not as your drive by....while it may be a great buy it's outside appearance (weak on English language website) just didn't entice me give it a closer look.  But hey, this is Thailand where Thai is spoken so I can't bitch....but I can drive on by.

 

[Thailand J]

20 minutes ago, MikeN said:

Yes, I was thinking that it would be best to keep the 800k separate and make it easy for Officer Somchai, that’s why I was curious about Bangkok Bank saying you could add funds to a fixed deposit. I am used to getting a new account number for each different fixed deposit back home so I couldn’t understand adding funds, especially by ATM or mobile banking, couldn’t see how that would work.

I can add deposit to my Bangkok Bank fixed deposit account by moving the fund from the savings account online. As i have said the new deposit has it's own maturity date and not mixed with previous ones. I was told you only need a new book if the terms are different.

 

As you can see there are two separate deposits here:

Edited February 19, 2019 by Thailand J

[Captain 776]

It is best to go to your bank of choice and get the facts........all you get here is opinions, some are correct but most repeat what they have heard and it is rarely accurate.

If u go to the bank, you can be sure what you are doing.

[Thailand J]

I can transfer funds from Savings to Fixed account on Bualuang iBanking but not from Fixed to Savings.

I can also schedule future automatic transfers; weekly, monthly or quarterly.

 

[MikeN]

37 minutes ago, Captain 776 said:

It is best to go to your bank of choice and get the facts........all you get here is opinions, some are correct but most repeat what they have heard and it is rarely accurate.

If u go to the bank, you can be sure what you are doing.

Get the facts ? You mean like when I was told foreigners need a work permit to open an account (K-Bank near Nana, and SCB On Nut). Or BKK Bank the other day when the girl could not explain why I couldn’t open another account, just Mai dai, even when according to the bank’s website I could.

 Get enough opinions here and at least the consensus is probably close to reality.

 And as for BKK bank’s online banking, 3 times now they have supposedly updated my file and still I cannot get access, no matter what the staff say and promise. So I take whatever the staff member says under caution.

Edited February 19, 2019 by MikeN

[Thailand J]

SCBeasy.com also allow savings to fixed deposit online one-way transfer.

[EricTh]

1 hour ago, Pib said:

The above TMB tag-team type account don't seem bad as all, especially the hybrid fixed account portion.  Equal to or probably a little better interest-rate wise than the Krungsri MTD account. 

 

 

I have a Krungsri MTD account, it only pays 1.3 if our balance is above 100k.

 

I don't understand why TMB pays higher interest?

 

SCB pays 1.6% for 12 months Fixed Deposit.

[EricTh]

51 minutes ago, MikeN said:

 

 And as for BKK bank’s online banking, 3 times now they have supposedly updated my file and still I cannot get access, no matter what the staff say and promise. So I take whatever the staff member says under caution.

You can update yourself by keying in the information on the online banking with your bank book details. I've done that myself many times. Access to online banking usually takes only 1 day.

 

There's some miscommunication due to language barrier between you and bank staff.

Edited February 19, 2019 by EricTh

[EricTh]

31 minutes ago, Thailand J said:

SCBeasy.com also allow savings to fixed deposit online one-way transfer.

 

 

SCB is easier than Bangkok Bank. I've moved most of my money out of Bangkok Bank into SCB because we only need one bank-book instead of tons for different terms.

 

Starting this year, the interest rate is higher than Bangkok Bank for the same term.

 

Are there any banks better than SCB in terms of interest rates?

[sfokevin]

6 hours ago, moontang said:

withholding, which is easily refundable

Doesn’t one need a certificate of residence to apply for the withholding refund?...

 

The going rate for a certificate of residence at Chiang Mai Immigration is 1,000 baht... 

[Pib]

22 minutes ago, sfokevin said:

Doesn’t one need a certificate of residence to apply for the withholding refund?...

 

The going rate for a certificate of residence at Chiang Mai Immigration is 1,000 baht... 

I never needed one....did refund here in Bangkok for 3 or 4 years.

[Pib]

41 minutes ago, EricTh said:

 

I have a Krungsri MTD account, it only pays 1.3 if our balance is above 100k.

 

I don't understand why TMB pays higher interest?

 

SCB pays 1.6% for 12 months Fixed Deposit.

Up to each bank as to what they pay on their various types of accounts....it's all a business decision....how competitive they want to be with other banks....what market share they are going after.  Now TMB paying higher on that one type of No Fixed account...that is, up to 1.6%....is another example of a business decision.  Since apparently you must have the separate All Free account which pays 0% interest to go along with their No Fixed account and use that All Free account at least 5 times per month (not sure if that is any type of transaction or just purchase transaction) to get an extra 0.3% on the No Fixed account you can bet TMB has done the cost analysis showing by not having to pay any interest on one account but paying extra on another account under certain condition that it's a win for TMB....makes them money big picture-wise.  And if that happens to also work out to a win for the customer then it's a win-win situation.