Bangkok Bank to lower deposit interest

By The Nation

 

Chartsiri Sophonpanich (File Photo)

 

Bangkok Bank is considering lowering its deposit interest rate after cutting the lending rate earlier this month by 0.25 per cent in an attempt to alleviate the burden on SME borrowers.

 

“The deposit rate cut will not affect the bank’s revenue,” said president Chartsiri Sophonpanich. “We are still expecting to see 3-4 per cent growth in total loans versus the 3-5 per cent target.”

 

Chartsiri is also confident that Thailand’s economy in the 3rd and 4th quarters will improve, thanks to the government’s economic stimulus packages.

 

“The growth in loans might be slow during the first half, but after the stimulus packages are deployed things should pick up,” he said.

 

“These packages were designed to boost consumer spending, which should mean businesses will want to expand and that translated into increased loans.”

 

Source: https://www.nationthailand.com/news/30375514

 

-- © Copyright The Nation Thailand 2019-08-29

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16 minutes ago, webfact said:

 

“The growth in loans might be slow during the first half, but after the stimulus packages are deployed things should pick up,”

Yea yea whatever .. and how are the packages being deployed .. drone , parachute , Lazarda .. give us a clue 

I didn't think there was any way to make bank deposit interest lower.

I'm sure when negative interest gets going, Thai banks will be jumping in boots and all!

13 minutes ago, ChrisY1 said:

I didn't think there was any way to make bank deposit interest lower.

I'm sure when negative interest gets going, Thai banks will be jumping in boots and all!

Well at least the way they are going I wont have the level of 20,000 baht annual interest that now attracts 15% tax for the government this month. The bank sent me a letter last week.

Not enough details but I'm assuming this is referring to normal Savings Accounts that only get 1.00% interest to begin with. 
Will be interesting to see if the other banks follow suit, or keep their current rates and try to snipe customers from Bangkok Bank (which would then force them to raise their rates again to try and lure those customers back).

 

Everything is done to help those in debt,while those that

manage their assets,have no debt,and try to save money,

are given no thought at all,with inflation eating away at their

savings,as interest given is less than inflation.

regards Worgeordie

3 hours ago, Kerryd said:

Not enough details but I'm assuming this is referring to normal Savings Accounts that only get 1.00% interest to begin with. 
Will be interesting to see if the other banks follow suit, or keep their current rates and try to snipe customers from Bangkok Bank (which would then force them to raise their rates again to try and lure those customers back).

 

The current interest rate for a normal savings acct is 0.5%; maybe you are thinking a short term fixed savings acct.

I like how the article only talks the deposit interest rate cut in the first sentence and part of the second sentence...and then the rest of the article talks about loans, stimulus, bank revenue, etc.   Kinda like quickly glossing over the bank will be paying out less interest to its deposit customers--don't really want to talk that.

27 minutes ago, Pib said:

The current interest rate for a normal savings acct is 0.5%; maybe you are thinking a short term fixed savings acct.

So the new rate will be .25%.  Negative rates seem not so far away for Thailand.

1 minute ago, Harveyg said:

So the new rate will be .25%.  Negative rates seem not so far away for Thailand.

Let's give it a positive spin....less interest earned means less tax withholding.  ????

Edited August 29, 20196 yr by Pib

3 hours ago, worgeordie said:

Everything is done to help those in debt,while those that

manage their assets,have no debt,and try to save money,

are given no thought at all,with inflation eating away at their

savings,as interest given is less than inflation.

regards Worgeordie

Debt enslaves, having money liberates. Not hard to work out what's really going on. Just wait till we go cashless the banks can decide whether or not to allow you access to your own money.

9 hours ago, webfact said:

Chartsiri is also confident that Thailand’s economy in the 3rd and 4th quarters will improve, thanks to the government’s economic stimulus packages.

So, he rubbing it in or smoking it  ? 

Just one more reason to not have money in a savings account. With a marriage extension a person only needs to 400k in the bank for 2 months prior. That's the way to go for me and afterward just start spending. 

10 hours ago, webfact said:

“The growth in loans might be slow during the first half, but after the stimulus packages are deployed things should pick up,” he said.

yeah more Thai debt zombies for the bankers.

 

send them to KFC while your are at it.

8 hours ago, worgeordie said:

Everything is done to help those in debt,while those that

manage their assets,have no debt,and try to save money,

are given no thought at all,with inflation eating away at their

savings,as interest given is less than inflation.

regards Worgeordie

But people that manage their Assets and Money are not putting any of it into the hands of the Banks, and are therefore not good custom.

All these people in Debt here, ( both formal and informal ), are one of the main reasons that the Baht cannot be devalued.

8 hours ago, worgeordie said:

Everything is done to help those in debt,while those that

manage their assets,have no debt,and try to save money,

are given no thought at all,with inflation eating away at their

savings,as interest given is less than inflation.

regards Worgeordie

Correct. Having money in a savings account is effectively paying the bank to keep it for you. 

5 hours ago, Krataiboy said:

Just wait till we go cashless the banks can decide whether or not to allow you access to your own money.

We are quickly getting there! I withdrew some money from a investment account recently - eventually, first I had to prove I wasn't somebody that had the same name that lived 9,000 miles away that was on the sex offenders list!!!! 

Freedom is being eroded - quickly! next we will have to report out whereabouts daily! 

11 hours ago, legend49 said:

Well at least the way they are going I wont have the level of 20,000 baht annual interest that now attracts 15% tax for the government this month. The bank sent me a letter last week.

They're taxing any and all amounts now for us "farang" (not Thais)...on normal savings accounts anyway. First time! Just started this year...

 

5 minutes ago, Skeptic7 said:

They're taxing any and all amounts now for us "farang" (not Thais)...on normal savings accounts anyway. First time! Just started this year...

 

But provide your Thai tax ID and they will stop the withholding for interest amounts under Bt20K or less per year.

11 hours ago, Kerryd said:

Not enough details but I'm assuming this is referring to normal Savings Accounts that only get 1.00% interest to begin with. 
Will be interesting to see if the other banks follow suit, or keep their current rates and try to snipe customers from Bangkok Bank (which would then force them to raise their rates again to try and lure those customers back).

 

Wasn't there recent news that Thanachart are to introduce a new 1.6% rate account?

4 minutes ago, Pib said:

But provide your Thai tax ID and they will stop the withholding for interest amounts under Bt20K or less per year.

Thx but don't have one. They can have it. Not worth my time. 

On 8/29/2019 at 11:09 AM, Pib said:

The current interest rate for a normal savings acct is 0.5%; maybe you are thinking a short term fixed savings acct.

Yeah - the account I was thinking of had been a higher interest, short term (7 month) "Fixed Term" account that, at the end of the term, went down to a 1% rate on 3 month terms.

If they drop the rate on my normal Savings Account, the amount I wouldn't be getting is so small I'd never notice it anyways !

 

(And they charge tax on almost any amount - I had an interest payment deposited into my regular Savings Account in June. It was 128.53 baht and they taxed it for 19.28 baht ! The horror ! The HoRRoR !)

However, the previous interest payment was deposited in December and wasn't taxed at all even though it was over twice as much.

Yea...the updated tax regulation went into effect around Apr 2019 where farangs get hit with the tax withholding on any interest earned of B20K or less per year unless providing a Thai tax ID.

On 8/29/2019 at 11:09 AM, Pib said:

The current interest rate for a normal savings acct is 0.5%; maybe you are thinking a short term fixed savings acct.

1,5% interest rate for a 12 months FDA,maybe 1% for 6 months.