Krungsri fixed deposit confusion or what the...?

[Galong]

Krungsri Bank seems to be trying to pull a fast one: I made a fixed deposit account for 300,000 baht for 7 month at 1.75%, but when I checked my account (should have matured last Monday) it was only .85%.  Now, the bank boss says it matures at one year!!!!  I asked the bank boss, "Why the did I sign up for a seven-month deposit timeframe then?" ... crickets.

Before that, she said (3 times) "come to bank to discuss" to which I said (3 times), "Phuket is on lockdown, I can't leave my Tambon. You are in another Tambon."

According to the bank document, the agreed upon maturity is 7th months. If I don't specify what to do maturity, it automatically rolls over to a fixed 3-month account... Unless I'm reading almost all of this incorrectly, I don't see how the bank can legally hold my money for an additional 5 months in order for me to get my 1.75%

Edited April 13, 2020 by Galong
Forgot documentation

[Mavideol]

had a similar eye opening with Citibank time deposit, it indicated a 6 month time deposit maturity but in order to qualify for the special offer the money had to stay an extra 3 months, thus their time deposit was not a 6 months but a 9 months, I did not read the small print with these specific T&C, did you read the ones from Krungsri it may be there

[Susco]

32 minutes ago, Galong said:

Krungsri Bank seems to be trying to pull a fast one: I made a fixed deposit account for 300,000 baht for 7 month at 1.75%, but when I checked my account (should have matured last Monday) it was only .85%.

 

How do you calculate the .85% you received?

 

Is that an interest of 0.85% added over the past 7 months, or 0.85% over 12 months?

 

Did you receive 2550 Baht interest on your 300K, or 1487 Baht?

[topt]

33 minutes ago, Galong said:

I don't see how the bank can legally hold my money for an additional 5 months in order for me to get my 1.75%

You realise (and sorry if obvious to you) that the 1.75% is probably an annual rate so for 7 months so you would only actually get 1.02%? Perhaps something got lost in translation with the manager.....

 

@Mavideol that sounds a bit sneaky 

[Galong]

5 minutes ago, Mavideol said:

had a similar eye opening with Citibank time deposit, it indicated a 6 month time deposit maturity but in order to qualify for the special offer the money had to stay an extra 3 months, thus their time deposit was not a 6 months but a 9 months, I did not read the small print with these specific T&C, did you read the ones from Krungsri it may be there

Thanks for your reply... I read the documents that they gave me and there was no mention of waiting longer than 7 months for 'maturity'. Now, I can't really recall if I signed anything in Thai that might have had fine print... perhaps.  

If this is the case, I'll likely just close the account and put the money elsewhere for their shady practice.  

One thing it did say was, "when the deposit reaches maturity but the depositor does not withdraw the money or issue other orders, the account will be renewed as a 3-month time deposit."  In other words, I should get EVEN MORE after the 7-month timeframe.

[Galong]

TopT said, "You realise (and sorry if obvious to you) that the 1.75% is probably an annual rate so for 7 months so you would only actually get 1.02%? Perhaps something got lost in translation with the manager....."

Well, I asked if I'll get my 1.75% at the end of one year. She wouldn't say definitively... geez.

The manager spoke very good English when I was signing up for this program, but suddenly today on the phone she couldn't explain anything.  I speak Thai and told her to tell me in Thai with my wife standing right beside me. She wouldn't/couldn't.

This does not look very promising.

Edited April 13, 2020 by Galong

[Galong]

The manager said she would look over the documentation and get right back to me. It's been a few hours. I guess the term 'right back' doesn't translate properly either. ????

[Susco]

6 minutes ago, topt said:

You realise (and sorry if obvious to you) that the 1.75% is probably an annual rate so for 7 months so you would only actually get 1.02%?

And that is also what I suspect. In the past year there has been no bank in Thailand that would pay 1.75% interest on a 7 month period

 

1.02% minus the 15% tax is 0.85%.

 

It would be helpful if the OP would elaborate on the exact amount of interest that was added to his account

 

 

[topt]

Just now, Susco said:

And that is also what I suspect. In the past year there has been no bank in Thailand that would pay 1.75% interest on a 7 month period

 

1.02% minus the 15% tax is 0.85%.

 

It would be helpful if the OP would elaborate on the exact amount of interest that was added to his account

 

 

Yes that computes - I had forgotten about the withholding tax.

[Mavideol]

8 minutes ago, topt said:

You realise (and sorry if obvious to you) that the 1.75% is probably an annual rate so for 7 months so you would only actually get 1.02%? Perhaps something got lost in translation with the manager.....

 

@Mavideol that sounds a bit sneaky 

it happen back in November 2019 and if I wanted the money after the 6 months months they would just give the bank basic rate and would charge penalties, meaning by the time I collected the money I would have less then originally deposited, run away fro Citibank

[Galong]

3 minutes ago, Susco said:

And that is also what I suspect. In the past year there has been no bank in Thailand that would pay 1.75% interest on a 7 month period

 

1.02% minus the 15% tax is 0.85%.

 

It would be helpful if the OP would elaborate on the exact amount of interest that was added to his account

 

 

OK, 300,000 baht at 1.75% that matured (7 months) on April 6th.

My online fixed deposit account shows 2,604 Baht more than the fixed deposit amount. However, I do have another 650,000 baht fixed account that was started on Jan 10th of this.  I'm not sure if any interest from that would be part of 2,604 Baht.

I have only ever deal with my Singapore bank with fixed deposits before.  It was cut and dry with no fine print. I might just pull my money out and send it to Singapore if I don't get a satisfactory answer soon. I'd honestly rather take a little lose than let Krungsri defeat me with fine print. ????

Thanks a lot for your input... much appreciated. ????

[Susco]

9 minutes ago, Galong said:

OK, 300,000 baht at 1.75% that matured (7 months) on April 6th.

My online fixed deposit account shows 2,604 Baht more than the fixed deposit amount. However, I do have another 650,000 baht fixed account that was started on Jan 10th of this.  I'm not sure if any interest from that would be part of 2,604 Baht.

I have only ever deal with my Singapore bank with fixed deposits before.  It was cut and dry with no fine print. I might just pull my money out and send it to Singapore if I don't get a satisfactory answer soon. I'd honestly rather take a little lose than let Krungsri defeat me with fine print. ????

Thanks a lot for your input... much appreciated. ????

That is your answer.

 

Interest rates on fixed deposits are always quoted per 12 months. so if you account matures in 7 months you get that interest divided by 12 and multiplied by 7, minus 15% withholding tax.

 

I opened a similar account with Bangkok bank in September, which also pays 1.75% and matures over 9 months.

 

So when it matures I will get 1.75/12*9-15%

 

Edit to add: Unless you have existing bank account in Singapore, good luck opening one with 1 Million Baht, or actually opening an account in Singapore at all as a foreigner with current regulations

Edited April 13, 2020 by Susco

[Sophon]

This is Krungsri Bank's deposit rates valid from August last year (around the time where the OP must have opened his account):
 

So the 1.75% is (as expected) an annual rate. So the OP should have received THB 2,603.13 after taxes, which according to his latest post is exactly what he got. Nothing to do with "fine print", the published interest rate is always the rate per annum.

[ChouDoufu]

the APR you earn on the balance is 1.75%

for 7 months, you earn 1.02%

subtract 15% tax and you get..............0.85%

[Galong]

1 minute ago, Sophon said:

This is Krungsri Bank's deposit rates valid from August last year (around the time where the OP must have opened his account):
 

So the 1.75% is (as expected) an annual rate. So the OP should have received THB 2,603.13 after taxes, which according to his latest post is exactly what he got. Nothing to do with "fine print", the published interest rate is always the rate per annum.

fair enough, HOWEVER, I did specifically ask her if I would get 1.75% in 7 months and she said yes, The documentation you provided here (thanks for that) was NOT part of the package that she gave me. So, it might not have been fine print per se, but missing print more likely. 

At any rate, I'm satisfied with everyone's help. Thanks to all of you.  No need for further comments. I understand now. ????????

[scubascuba3]

So customer error. I have noticed with Thais (yes I'm generalising) that their knowledge is wafer thin hence why the Krungsi lady couldn't explain

[couchpotato]

12 minutes ago, Susco said:

And that is also what I suspect. In the past year there has been no bank in Thailand that would pay 1.75% interest on a 7 month period

 

1.02% minus the 15% tax is 0.85%.

 

It would be helpful if the OP would elaborate on the exact amount of interest that was added to his account

 

 

The above explanation is correct.

ALL Thai banks quote % p.annum, so a fixed deposit of any months less than a year is calculated as: 1.75% divided by 12 mths x 7 mths = 1.02% and of coarse the 15% tax.

So they are not running a scam or ripping you off, this is the way it's always been done. Many years ago there were only yearly (or multiples of) fixed deposits, but over the past few years with currency volatility there have been products available (ie: 3 mths, 6 mths, 7 mths, 10 mths etc).

Also 99% of fixed deposits are never carried over at the same rate and duration. At the end of the deposit, they are transferred to a low rate awaiting instructions from the deposit owner. (eg: I always go in 2 days after the end date, and then decide what to do, dependent on the current rates etc).

Hope this helps you.But if you are going to use Bank products, you should research what the regulations are.

 

[Mavideol]

12 minutes ago, Galong said:

OK, 300,000 baht at 1.75% that matured (7 months) on April 6th.

My online fixed deposit account shows 2,604 Baht more than the fixed deposit amount. However, I do have another 650,000 baht fixed account that was started on Jan 10th of this.  I'm not sure if any interest from that would be part of 2,604 Baht.

I have only ever deal with my Singapore bank with fixed deposits before.  It was cut and dry with no fine print. I might just pull my money out and send it to Singapore if I don't get a satisfactory answer soon. I'd honestly rather take a little lose than let Krungsri defeat me with fine print. ????

Thanks a lot for your input... much appreciated. ????

I only bank in Singapore thus not taxes on my collected interest, why would I use a Thai bank for a fixed deposit at vey low interest rates and on top of that had to pay 15% taxes (I am aware that people maybe able to collect the taxes by filing with the tax department,  but the harassment/head aches and paper work it's not worth my time)

[couchpotato]

15 minutes ago, Galong said:

OK, 300,000 baht at 1.75% that matured (7 months) on April 6th.

My online fixed deposit account shows 2,604 Baht more than the fixed deposit amount. However, I do have another 650,000 baht fixed account that was started on Jan 10th of this.  I'm not sure if any interest from that would be part of 2,604 Baht.

I have only ever deal with my Singapore bank with fixed deposits before.  It was cut and dry with no fine print. I might just pull my money out and send it to Singapore if I don't get a satisfactory answer soon. I'd honestly rather take a little lose than let Krungsri defeat me with fine print. ????

Thanks a lot for your input... much appreciated. ????

You are being silly and childish now. People have laid out the correct way to interpret this, so just acknowledge you are wrong and work out the correct formula for your next deposit.

[Galong]

11 minutes ago, Susco said:

Edit to add: Unless you have existing bank account in Singapore, good luck opening one with 1 Million Baht, or actually opening an account in Singapore at all as a foreigner with current regulations

 Yep, I've got an account in Singapore already. It's so easy to deal with and everything can be done online without any hassle. 

Alternatively, I could send money to my investment account in my homeland or simply put it in my safe. I don't like the way the manager did this deal. I do see that it was all 'above board' now, but in the information was incomplete and I'm not sure if I would have agreed to the actual deal given my options to put that money elsewhere.  Oh well, live and learn.  Cheers. 

[Galong]

2 minutes ago, couchpotato said:

You are being silly and childish now. People have laid out the correct way to interpret this, so just acknowledge you are wrong and work out the correct formula for your next deposit.

Go <deleted> yourself.

[couchpotato]

1 minute ago, Galong said:

Go <deleted> yourself.

Thank you. with the lack of women around town, it might be the way to go.

No tax then!!

[Mavideol]

1 minute ago, couchpotato said:

Thank you. with the lack of women around town, it might be the way to go.

No tax then!!

that's why I usually don't help anybody or provide information, to avoid this type of thank you, lack of appreciation happen quite often here

[Sophon]

3 minutes ago, couchpotato said:

The above explanation is correct.

ALL Thai banks quote % p.annum, so a fixed deposit of any months less than a year is calculated as: 1.75% divided by 12 mths x 7 mths = 1.02% and of coarse the 15% tax.

So they are not running a scam or ripping you off, this is the way it's always been done. Many years ago there were only yearly (or multiples of) fixed deposits, but over the past few years with currency volatility there have been products available (ie: 3 mths, 6 mths, 7 mths, 10 mths etc).

Also 99% of fixed deposits are never carried over at the same rate and duration. At the end of the deposit, they are transferred to a low rate awaiting instructions from the deposit owner. (eg: I always go in 2 days after the end date, and then decide what to do, dependent on the current rates etc).

Hope this helps you.But if you are going to use Bank products, you should research what the regulations are.

 

I disagree with this part of your post:

"Also 99% of fixed deposits are never carried over at the same rate and duration. At the end of the deposit, they are transferred to a low rate awaiting instructions from the deposit owner."

 

Most Thai banks will automatically renew a standard fixed deposit with a new deposit of the same length (unless you give them other instructions). A 3 month fixed deposit will roll over into a new 3 month term, a 6 month fixed deposit into a new 6 month fixed deposit etc. My 12 month fixed deposit with Bangkok Bank always roll over into a new 12 month fixed deposit each March without any need for my intervention.

 

However, when it comes to "special deposits" as the OPs  month fixed deposit, those will be rolled over into 3 month fixed deposit accounts, because those specials are time limited and are not open when your existing fixed term expires. If you are unhappy with that and are late in giving the bank new instructions, you can always at any time withdraw your money from a fixed deposit without penalty (other than loss of interest) at all Thai banks.

[fruitman]

52 minutes ago, Galong said:

I have only ever deal with my Singapore bank with fixed deposits before.  It was cut and dry with no fine print. I might just pull my money out and send it to Singapore if I don't get a satisfactory answer soon. I'd honestly rather take a little lose than let Krungsri defeat me with fine print. ????

DBS bank singapore gives 3% last time i read their website. Also to foreigners.

[couchpotato]

12 minutes ago, Sophon said:

I disagree with this part of your post:

"Also 99% of fixed deposits are never carried over at the same rate and duration. At the end of the deposit, they are transferred to a low rate awaiting instructions from the deposit owner."

 

Most Thai banks will automatically renew a standard fixed deposit with a new deposit of the same length (unless you give them other instructions). A 3 month fixed deposit will roll over into a new 3 month term, a 6 month fixed deposit into a new 6 month fixed deposit etc. My 12 month fixed deposit with Bangkok Bank always roll over into a new 12 month fixed deposit each March without any need for my intervention.

 

However, when it comes to "special deposits" as the OPs  month fixed deposit, those will be rolled over into 3 month fixed deposit accounts, because those specials are time limited and are not open when your existing fixed term expires. If you are unhappy with that and are late in giving the bank new instructions, you can always at any time withdraw your money from a fixed deposit without penalty (other than loss of interest) at all Thai banks.

I also have/had many 12 mth, 24 mth etc Fxd deposits at BKK bank, but must always go into the bank to fix the new term, to get the best rate available at the time. I do not believe your deposits are rolled over at the same rate year after year or whatever the new prevailing Fxd deposit rate is.

I have asked to do this for over 30 years at BKK Bank and they will not, but I don't mind going to the bank once a year.

 

[macahoom]

12 hours ago, fruitman said:

DBS bank singapore gives 3% last time i read their website. Also to foreigners.

 

The last time you looked must have been many, many years ago.

[Sophon]

12 hours ago, couchpotato said:

I also have/had many 12 mth, 24 mth etc Fxd deposits at BKK bank, but must always go into the bank to fix the new term, to get the best rate available at the time. I do not believe your deposits are rolled over at the same rate year after year or whatever the new prevailing Fxd deposit rate is.

I have asked to do this for over 30 years at BKK Bank and they will not, but I don't mind going to the bank once a year.

 

It's obviously not rolled over at the same rate, but the system automatically rolls it over to a new one year fixed deposit at the prevailing rate without any action necessary from me or from the bank staff. It' even stated in Bangkok Bank's terms and conditions for fixed deposits:

 

It's pretty clear language:

Quote

Where the account owner has not withdrawn a deposit at the end of its term, it shall be deemed that the account owner wishes to continue to deposit the amount in the same Account under the same type and the same term and at the rate of interest prescribed by the Bank at the date of the said renewal and if the Bank has not otherwise informed the account owner, the Bank shall be deemed to agree to accept such renewal. This practice shall apply at each maturity of any deposit.

I have had fixed deposits with Bangkok Bank, Siam Commercial Bank, Kasikorn Bank and Krung Thai Bank and they all have the same policy.

[Pib]

Above is correct "except" when possibly when the bank offers a "promotional" fixed term where at maturity the terms of the promotional fixed rate may state it will automatically roll over into a 90 days fixed unless the acct owner comes in and gives other instructions....like picking another fixed term to roll the money into.   

 

Up until about 5 years ago I kept my Bt800K retirement extension of stay money in a Bangkok Bank fixed accts....and back then when fixed interest rates were a lot higher Thai banks competed with each other aggressively in offering "promotional" fixed terms.  Say a promotional fixed 12 month which paid say 3.5% interest which was higher than their standard 12 month fixed term say paying 2.5%....but with the promotional fixed term it was like one of these flash sales when the promotion only runs for a short period...then the promotion is no more....back to regular pricing/interest.   And the rollover provisional was a little different. 

 

When the "promotional" fixed term matured it automatically rolled over into a standard 90 day fixed term instead of anther identical term which is the normal for a standard fixed acct.  That is, a promotional 12 month fixed would roll over into a 90 day fixed term. 

 

During the time I was doing Bangkok Bank promotional fixed terms I probably had around a half dozen promotional fixed terms over a 3 to 4 year period....I remember having  4 month,  7 month, 12 month, and 15 month fixed term accts.  When one would mature I would go the bank a few days after maturity and roll it over in the best promotional fixed term available at the time.   But during those few days before picking a fixed acct, they all had rolled over into their standard 90 day fixed term.   Update your passbook and that would be printed in your book....money automatically rolled over to a 90 day fixed.  

 

But that was never a surprise to me because at that time for their "promotional" fixed term it was clearly shown on their website and docs you signed the promotional fixed term would automatically roll over to a standard 90 day fixed term until the owner came in with other instructions.  And this special condition was covered by the phase I underlined below where it says "....and if the Bank has not otherwise informed the account owner" as in your promotional fixed acct has the special provision of automatically rolling over into a 90 day fixed.

 

 

So, long story short is yeap, it's the norm for a Bangkok Bank fixed term acct to automatically roll over into a another fix acct of same term length at the standard interest rate.   However, but, if you open a "promotional" fixed term (which I have not seen advertised for a long time) you got automatically rolled over into a standard 90 day term that would just keep rolling over into more 90 day fixed terms if you didn't go in with other instructions.

[Sophon]

37 minutes ago, Pib said:

Above is correct "except" when possibly when the bank offers a "promotional" fixed term where at maturity the terms of the promotional fixed rate may state it will automatically roll over into a 90 days fixed unless the acct owner comes in and gives other instructions....like picking another fixed term to roll the money into.   

 

Up until about 5 years ago I kept my Bt800K retirement extension of stay money in a Bangkok Bank fixed accts....and back then when fixed interest rates were a lot higher Thai banks competed with each other aggressively in offering "promotional" fixed terms.  Say a promotional fixed 12 month which paid say 3.5% interest which was higher than their standard 12 month fixed term say paying 2.5%....but with the promotional fixed term it was like one of these flash sales when the promotion only runs for a short period...then the promotion is no more....back to regular pricing/interest.   And the rollover provisional was a little different. 

 

When the "promotional" fixed term matured it automatically rolled over into a standard 90 day fixed term instead of anther identical term which is the normal for a standard fixed acct.  That is, a promotional 12 month fixed would roll over into a 90 day fixed term. 

 

During the time I was doing Bangkok Bank promotional fixed terms I probably had around a half dozen promotional fixed terms over a 3 to 4 year period....I remember having  4 month,  7 month, 12 month, and 15 month fixed term accts.  When one would mature I would go the bank a few days after maturity and roll it over in the best promotional fixed term available at the time.   But during those few days before picking a fixed acct, they all had rolled over into their standard 90 day fixed term.   Update your passbook and that would be printed in your book....money automatically rolled over to a 90 day fixed.  

 

But that was never a surprise to me because at that time for their "promotional" fixed term it was clearly shown on their website and docs you signed the promotional fixed term would automatically roll over to a standard 90 day fixed term until the owner came in with other instructions.  And this special condition was covered by the phase I underlined below where it says "....and if the Bank has not otherwise informed the account owner" as in your promotional fixed acct has the special provision of automatically rolling over into a 90 day fixed.

 

 

So, long story short is yeap, it's the norm for a Bangkok Bank fixed term acct to automatically roll over into a another fix acct of same term length at the standard interest rate.   However, but, if you open a "promotional" fixed term (which I have not seen advertised for a long time) you got automatically rolled over into a standard 90 day term that would just keep rolling over into more 90 day fixed terms if you didn't go in with other instructions.

Agree, that's why I specifically in my post (post 24) said:

Quote

Most Thai banks will automatically renew a standard fixed deposit with a new deposit of the same length (unless you give them other instructions)

and:

Quote

However, when it comes to "special deposits" as the OPs  month fixed deposit, those will be rolled over into 3 month fixed deposit accounts, because those specials are time limited and are not open when your existing fixed term expires