Money In Bank

[phuketrichard]

I was wondering about the 800,000 that needs to be placed in the bank for a 1 year retirement extension.

Will $US20,000 placed in a us$ account in Thailand work for this? I don't want to place the money I have in Baht. So

anyone know about this??

Thanks

[ProThaiExpat]

Directing your attention to the purpose of the financial responsibility for retirees required by the immigration department, one must focus on your ability to demonstrate that (1) you have the required amount in the bank when you apply for the extention for one year (2) that your bank book demonstrates your drawing down on this money for your living expenses in the past year and (3) the replacement funds occur as a result of transfers from overseas.

When I inquired about a dollar denominated account at Bangkok Bank in CMX, I was advised they were only available in Bkk and that there were many rules and regulations regarding their use.

If your bank's rules permit you to access your dollar denominated account for your living expenses and you have some means of demonstrating this to immigration as well as meeting the other criteria innumerated above, you may wll be able to do it, however, expect much consternation and difficulty when you try to have that account qaulify. The immigration officer involved will also be a key element in that regard.

I can easily picture an immigration officer pointing out to you that the regulation requires you to have 800K BAHT in the bank and that the dollar equivalent doesn't meet that requirement.

[dr_Pat_Pong]

It is likely that they want to see Th Baht in the account, and the funds HAVE to be in a bank in Thailand. There is nothing wrong with going into Immigration and asking.

[walker]

Does anyone know if Thai banks with branches in the US (including, theoretically, Siam Commercial, whose Phone #s have been disconnected) will take automatic deposits to an American branch and transfer them to say, (hypothetically, but not very) a Chiang Mai branch, without cost?

[OldAsiaHand]

A Thai bank can only accept deposits in the US if it operates an authorized branch bank there, and even then, the 'transfer without cost' part of your question can be answered 'no' for almost any bank anywhere. Byt he way, as far as I know the only presence any Thai bank has in the US is just a rep office.

[ProThaiExpat]

An employee of the Social Security Administration, when checking on how some expats got direct deposits of their checks in Thailand, revealed that the checks are direct deposited in the New York branch of the Bangkok Bank, which then sends the money to the appropriate branch in Thailand.

I doubt they would do it without fee as they charge inter-branch transfer fees between provinces within Thailand.

[john b good]

It is common for banks pretty well every where to route money transfers from their own bank via a bank in New York and on to the recipient bank.

This applies (but not exclusively) to transfers to banks in many country's, not just to Thailand. As I have suggested there are exceptions.

And it is most often not cheap as the bank in NY will charge a fee as does the receiving bank.

[Emuu]

Some of my clients use the guaranteed monthly income alternative when applying for their visa. It is normally slightly more (e.g. 80,000 per month instead of 800,000 in the bank) but it often works out better.

1. Their money remains off-shore earning interest until they need it,

2. If their circumstances change they have their money available anywhere in the world without having to wait to extract it from the Thai bank,

3. All of the purchases they make like food at supermarkets etc, go on their credit card with no fee for ttransfer, and

4. They can take advantage of spot currency price fluctuations to get better value on the cash they need here from time to time.

We manage their off shore investnments and provide them with a letter stating how much is invested and what the income stream is that it returns, and they take that letter to their embassy and the rest is history.

There's more than one way to skin a cat.

[lopburi3]

1. Their money remains off-shore earning interest until they need it,

2. If their circumstances change they have their money available anywhere in the world without having to wait to extract it from the Thai bank,

3. All of the purchases they make like food at supermarkets etc, go on their credit card with no fee for ttransfer, and

4. They can take advantage of spot currency price fluctuations to get better value on the cash they need here from time to time

1. A Thai bank account pays interest also; and for most it is tax free.

2. A Thai bank account allows an ATM card usable anywhere in the world - no need to wait.

3. Overseas credit cards are often not accepted at super markets here and most cards charge fees and/or provide a poor exchange rate. Not to mention the surcharge often involved with card usage here.

4. You can't have it both ways.

[phuketrichard]

have you seen what thai banks pay interest??? less than 1.5%

As far as oversaes credit cards. Where did your info come from??

I have 2 overseas credit cards, visa and MC and use them all the time!! never any problem. PLus if they try to charge me the extra charge I just tell them forget it and they always allow me to use it for no fee.

There is NEVER any user surcharge

Groceries,, Lotus..no charge

Honda car dealer...no charge

any restaurant in Phket... No charge

Any hotel I have visted in Thailand...no charge

Online purchases anywhere in the world NO charge

and I pay my bills for my us cards online using my american bank from Thailand with never any trouble.

[lopburi3]

have you seen what thai banks pay interest??? less than 1.5%

Have you seen what US banks pay?

As far as oversaes credit cards. Where did your info come from??

Experience.

Try using it at Jusco Supermarkets.

Or most restaurants (most of use eat at non tourist venues).

Almost any discount operation will charge a surcharge.

Most US credit cards now charge a "foreign usage fee" that can be several percent.

[ProThaiExpat]

lopburi3: Aha!!! I may have you at last!!!

1. A Thai bank account pays interest also; and for most it is tax free

Bangkok bank takes the taxes out of your account automatically.

Have you checked your bank book lately.

Would love to know of what bank does not automatically deduct tax on interest paid?

[lopburi3]

Bangkok bank takes it out with one hand and returns it with the other at times but I always get my interest without paying any tax. As long as the interest on a passbook remain below (believe 10,000 baht per year) there is no tax to pay. That is why, when rates were higher, people would keep two or three accounts. In June last year, after paying interest, they took 300 baht out with one entry for tax and returned it with the next entry.

[ProThaiExpat]

Shucks, lopburi3, foiled again!

You know what I am going to do next, check my bank book carefully.

Your information is very valuable, multiple accounts when the amount gets high, thanks.

Know I am waiting for your first "mis-spoke".

[mag4570]

At present my bank pays .05 % up to 750.000 USD, So at 1.5 % the Thai Banks seem to be better than the US rates, However as interest rates go up as Allen Greenspan predicts so will the banks rates, Thats in the US of coarse and impossible to predict in other country's, As a general rule rates will usually reflect what the US Dollar is valued at.

[dr_Pat_Pong]

have you seen what thai banks pay interest??? less than 1.5%

Have you seen what US banks pay?

As far as oversaes credit cards. Where did your info come from??

Experience.

Try using it at Jusco Supermarkets.

Or most restaurants (most of use eat at non tourist venues).

Almost any discount operation will charge a surcharge.

Most US credit cards now charge a "foreign usage fee" that can be several percent.

My Aussie Visa Amex and Mastercard are accepted without question wherever I present 'em Lop ( maybe they are upmarket on Yankee issued cards )

[ProThaiExpat]

Debit cards are looking more and more attractive. I haven't used the miles accumulated on my Visa Advantage Card yet, just enough after five years to fly to OZ and back. Meanwhile $145 a year service fee. It is going the way of the dodo bird as soon as I can get my banks lined up.

[lopburi3]

My Aussie Visa Amex and Mastercard are accepted without question wherever I present 'em Lop ( maybe they are upmarket on Yankee issued cards

That include the food courts? Or the local noodle vendor? Many, if not most, of those living here full time do not depend on places that accept any kind of plastic. Maybe I'm just down-market.

I have not used Jusco for a year or so but they have had very large signs in supermarkets that non Thai issued credit cards are not accepted. And I know for a fact use of my US card in department store section two years ago resulted in a large surcharge (as another bill) (which my bank did not pay). Of course they may allow other rules for Oz as you are almost on the same side of the world.

I know for a fact that US Chase Visa Credit Card, and others, charge an extra 2% as a transaction fee for any use here. The alternative is to be billed in $, as is done at Bumrungrad Hospital. No fee but a really bad exchange rate done here at Bangkok Bank. Somebody is always going to get your money when you use plastic.

[ProThaiExpat]

lopburi3: It is getting tiresome agreeing with you so much.

I had little difficulty not using my plastic after settling in here as the exchange rate used by the credit card company were horrible and everything cost so much more.

My ATM keeps me flush with cash and my electril bill comes right out of my account. Water man 120 baht a month comes to the door as does the 60 a week water guy.

So easy and a bank record of how much I spend each month. For years, I have a couple of corporations going so credit cards were essential to document expenses and allocate those expenses, but in those days it was all U.S. with no currency conversion problems.

My advice to all expats retired in Thailand, pay by cash, as you do.

I see Thais almost always paying for groceries at Carrefour with cards and have wondered "do they get premiums from their card companies or are they just showing off?. Perhaps they are debit cards, which makes sense. Will explore that with Bangkok Bank, as I wouldn't have to ATM so much and carry so much cash if I had a debit card into my account.

[Emuu]

Camparing US banks to Thai banks or any others for that matter for return on investment, is a little like comparing useless to completely useless.

Banks should only ever be used for transferring money, not storing it.

A good return/low risk use of your money is in the 8 to 10% range. You then link the Investment house of your choice to the bank of your choice to ensure you have money as required when required.

If you are getting good returns, you can afford to pay a little bit to the people who make it happen, whether bank or credit card or shop. There is no such thing as a free lunch, so if your bank is doing it for "free" it's only because they are using your money to major advantage to themselves and giving you the scraps as a so called free gift.

[dr_Pat_Pong]

Some of my clients use the guaranteed monthly income alternative when applying for their visa.  It is normally slightly more (e.g. 80,000 per month instead of 800,000 in the bank) but it often works out better.

1.  Their money remains off-shore earning interest until they need it, 

2. If their circumstances change they have their money available anywhere in the world without having to wait to extract it from the Thai bank,

3.  All of the purchases they make like food at supermarkets etc, go on their credit card with no fee for ttransfer, and

4.  They can take advantage of spot currency price fluctuations to get better value on the cash they need here from time to time.

We manage their off shore investnments and provide them with a letter stating how much is invested and what the income stream is that it returns, and they take that letter to their embassy and the rest is history.

There's more than one way to skin a cat. 

Would you mind PMing some detail to me Emuu ?

[pnustedt]

I currently use HSBC in HK and when I move to LOS in a few years plan to transfer to their branch in Bkk. I use their "Premier Advantage account" which allows holding investments and savings in several major currencies and the balance is shown in local currency. Several members have previously said that this is acceptable to immigration.

Check out: hsbc bkk

The main drawbacks are that there is only the one branch and a fairly high balance is required.

[ProThaiExpat]

OK Guys, I have spoken to SCB about my new debit card and have come to some conclusion regarding "card safety" and here they are ranked with the safest, in my opinion, first. Your comments are solicited.

1. ATM CARD: Requires ATM machine under your control, your pin number and your ATM card. DANGER: Only very sophisticated thieves can break this one.

2. DEBIT CARD: Requires an electronic reader to connect to system. Capturing the number off the card doesn't allow access. Must have card to make it work. The electronic bar code on the back of the card is what is read by the system.

DANGER: A quick swipe of your card ,AFTER your primary transaction is completed. Also, if you lose your card, it can be used by anyone. Immediate loss report is essential.

To maximize saftety, do not let clerk out of your sight while they have your card and follow them into any "other room" to ensure only one "swipe" is performed. I even followed one today into the area behind the counter as the electronic reader was below counter height and not easily viewable from over the counter. No problem with staff. This one understood immediately my concern. Mai pen rai.

3. CREDIT CARD: In my view, the DANGER of the credit card is that a carbon copy of the card can be made when a manual card machine is used in a small shop. Most often, card companies will accept hand written charge slips and "signature on file" excuse is accepted uniformly.

Fortunately, credit card companies will investigate and disallow fraudulent use of your card. I have questioned charges made to my Citibank Mastercard in the past and am satisfied with their security. Their computer is also fairly sophisticated in alerting security when your "credit pattern" is not followed.

I still think I will see if SCB will set up a master account, in addition to my new debit card account, from which they will automatically transfer monthly, a pre-arranged monthly funding of the debit card account. Will advise further.

[lopburi3]

2. DEBIT CARD: Requires an electronic reader to connect to system. Capturing the number off the card doesn't allow access. Must have card to make it work. The electronic bar code on the back of the card is what is read by the system.

DANGER: A quick swipe of your card ,AFTER your primary transaction is completed. Also, if you lose your card, it can be used by anyone. Immediate loss report is essential.

A debit card can be used in exactly the same manner as a credit card. And that includes slips/internet/phone/fax - only having no money in your account makes it safer than a credit card.

[dr_Pat_Pong]

2. DEBIT CARD: Requires an electronic reader to connect to system. Capturing the number off the card doesn't allow access. Must have card to make it work. The electronic bar code on the back of the card is what is read by the system.

DANGER: A quick swipe of your card ,AFTER your primary transaction is completed. Also, if you lose your card, it can be used by anyone. Immediate loss report is essential.

A debit card can be used in exactly the same manner as a credit card. And that includes slips/internet/phone/fax - only having no money in your account makes it safer than a credit card.

Soooo true Lop. Anywhere in the world.

[phuketrichard]

Ok I live in Phukert which is a tourist place but any restaurnat here that the bill will be more than 250 baht will take any credit card for no charge, Hotels no charge, Lotus, big cn, robindons... all no charge,

gas stations.. no charge

IN Bangkok any where i have been INCLUDING patpong I have used my cards with NO chrage, ( they tried to take on on but I told them I would go elsewhere) they did ask for a 500 baht min...

MY 2 cards are platinum and there are no yearlkycharges and both give miles and money back. I use them a lot to say the least.

Even my thai american express I use for shopping for groceries and eating out...never a charge.

I have an account at citibank in the states and for over $2,500 in the account it pays 2.5%

Good enough

[ProThaiExpat]

lopburi3&Dr.Pat: I was not specific enough in my post.

I was referring to the debit card I got from SCB. That card has a mastercard logo superimposed on it is the word "Electronic". It is further identified as a "hip card".

The letters of the card are not superimposed or raised. Therefore, if it was run through the card machines that use a carbon slip voucher, it would not imprint.

Who knows if the information I got from the staff at the bank is absolutely correct.

Thus, as I said, I am going to create another account to hold the majority of my money in Thailand and have monthly automatic transfers made to fund the debit card account. An ATM card for the main account is comfortable for me.

[KevinN]

PTE; My SCB electron card is the same as the one you got,,they gotta have the card to use the acct, is no way to get the number off the card unless they use an electronic reader, But the one I have from the states is a regular raised figures card that can be used in a roller transfer machine when used or an electronic reader., But from the looks of things,the old roller transfer machines are almost a thing of the past. Think I will ask my bank when they gonna switch to the smooth cards.

[ProThaiExpat]

KevinN; Perhaps I got you to thinking about security like lopburi3 did to me on how we can be scammed. The double swipe seems the only thing realistically we can expect to encounter and watching the swipe process is fairly straightforward in most places.

Will check on the automatic transfer approach mentioned previously and will advise since we now both use the same bank. I know I had an automatic transfer set up at Bankok Bank, I think they charged me 20 baht a month to do it.

I know I will feel safer if I set up a holding account not subject to the debit card, only an ATM. Also, a "monthly" account could be used for budgetary purposes, as you would sure know if you went over your budget as the debit card wouldn't work and you would have to use a credit card or ATM for the current purchase. Likewise it would be very "rewarding" if you were under budget.

[ProThaiExpat]

After lopburi3's heads up about debit cards, I have accomplished the following.

Two different accounts at two different branches of SCB, because sub-branch can't open account accessable by ATM card. Monthly automatic transfer of living expense budget amount from large fund holding account with ATM access to monthly buget maximum account with debit card access. ATM and debit with different passwords.

This approach also provides for my love interest to get me some cash, if I am not going out, and they would hardly be tempted to break my trust for less than 50k.

Most assets held in home country and now available by wire transfer. Hawaii bank says 45USD for under 5k USD and 60 for 5-10K USD. A bit expensive for my taste.

Charles Schwab has a 25USD wire fee without dollar limit from funds you have on deposit in one of their money market or liquid bond funds. They also have a money link between my bank and my account with them so I can tranfer money from the bank where my income is deposited to Charles Schwab with a key stroke.

Many thanks to all for your help. I feel quite secure now that I have the foregoing flexibility and safety.