Fixed Deposit for Retirement Extension.

[micky]

All these years I have been using 800K in Savings Account for Retirement Extension.

This coming year, I am thinking of putting the 800K in a Fixed Deposit Account for one year.

Can I use this Fixed Account to renew the Retirement Extension in Cheang Wattana ?

The next question is this :

1. Assuming my Fixed Deposit has not matured, can I apply ?

2. Have I got to get a letter from the bank for this purpose when applying ?

3. Will the bank allow me to update a Fixed Deposit on the same day ?

Your kind advice is much appreciated.

Thanking you all in advance. Khap Khun Khap.
 

[ubonjoe]

They will accept a fixed deposit account if it allows immediate access to the funds with no penalty other than loss of interest.

1. Yes

2. You need to get the standard bank letter.

3. Yes

[JerseytoBKK]

I have a foreign currency fixed deposit (1 year term) at Bangkok bank. For this account they don't give a bank book but I get statements mailed to me every month. Day before I renewed at CW I got a letter from the bank stating the $ and equivalent Baht balance and the terms of the account.  Made copies of the last 2 statements and took my 2 certificates that I received when I opened the account and need to turn in when I cash out the account. CW made copies of the certs. No problems with getting my extension. This was back in January.

[DrJack54]

OP, I have an FD in the main was to avoid a slip up. It wouldn't do it for the amount of interest. 

Also be aware when I did the deposit on day of application at CW the minimum deposit was 1000baht at green K bank.

[moontang]

cim b often have the best rates..I am coming to the end of a 2.5%..on 100k, that alone pays my broadband bill.  cim b had a problem updating, so I just added a 10000 to it for six months..the young guy at IO was a dic k about it but approved it.  one consideration..to get the best rates, you may be required to take monthly interest payments, and on those, the redemption value will be less than face value, as the rate will retroactively revert to normal savings rate..so if they have been paying 2% for a year, and you have to cash it before maturity, yo ur rate would revert to .4% or so, and on a million THB, you would owe 16000..but the IO aren't smart enough to know that, but might be best to do 820 instead of an even 800k.  I also did a 450 and a 400, just to have a ladder and avoid it all maturing at once, especially since they now have the 400 and 800 minimum rules during the year..but that was something else the new IO didn't like.  I think Krungsri mae tai dee is perhaps all around best, for rates simplicity, liquidity, and solvency, with its roots in Japan..

 

Edited July 19, 2020 by moontang

[marcho]

I use the Govermennt Saving Bank of Thailand. 1000 baht to open. No tax. 0.9% interest. With book. Fixed 1 year. I no its low this year, things have changed. I was getting 1.5% last year. I am on married Visa 400.000. Another good one is Land and House Bank. At Big C on the 108 hwy but you have to to over 500.000 baht in it.  Google  BOT commercial bank interest rates, it's all there.

[johng]

5 minutes ago, marcho said:

I use the Govermennt Saving Bank of Thailand. 1000 baht to open. No tax. 0.9% interest.

Are you sure no tax..I thought they started applying tax to all accounts that belong to foreigners unless you provide them with a tax number.

[moontang]

6 minutes ago, marcho said:

I use the Govermennt Saving Bank of Thailand. 1000 baht to open. No tax. 0.9% interest. With book. Fixed 1 year. I no its low this year, things have changed. I was getting 1.5% last year. I am on married Visa 400.000. Another good one is Land and House Bank. At Big C on the 108 hwy but you have to to over 500.000 baht in it.  Google  BOT commercial bank interest rates, it's all there.

They were still doing 1.5% at CIMB for one year, but for over 55.  No withholding on it, either..1.8 million max.  Always got every baht of withholding back.  Opened at krungsri, today.  1.1% on first 100k...then 1.0 on the next several million.

[moontang]

2 minutes ago, johng said:

Are you sure no tax..I thought they started applying tax to all accounts that belong to foreigners unless you provide them with a tax number.

Not on over 55 account at CIMB.

[Henricus]

https://www.bot.or.th/english/statistics/_layouts/application/interest_rate/in_rate.aspx

 

[moontang]

3 minutes ago, Henricus said:

https://www.bot.or.th/english/statistics/_layouts/application/interest_rate/in_rate.aspx

 

The thing is, that the best deals are more often than not, in oddball tenors..like 5,7,11,13 months..and those don't appear on your link.  Likely, a scheme to limit an interest rate war, that would hurt the oligopoly of Thai banks.  And when you do get a good promo on an 11 month FD, you can bet it will roll over to something paying about half the old rate, but you simply have to go into the branch and pick the newest promo.  Even in a rising rate environment, I have seen a 2.6250 become a 1.1250 for a very similar term.  It at least shows a few standouts.

[marcho]

18 hours ago, johng said:

Are you sure no tax..I thought they started applying tax to all accounts that belong to foreigners unless you provide them with a tax number.

Sorry you are right. But anyway get it back later that year.

 

[retiree]

As much as I hate to go back on topic, re this:

Quote

 

2. Have I got to get a letter from the bank for this purpose when applying ?

3. Will the bank allow me to update a Fixed Deposit on the same day ?

 

My comments apply to my yearly retirement extension at CW.  I have a fixed deposit account.  Interest payment (and last bankbook update) is typically dated 2 months prior to my extension, even when I physically update the bankbook the day before.   I have never made a last-minute deposit to make the bankbook appear up to date.  The account has no other activity, other than an automatic, immediate transfer of any interest to my regular savings account (which is never required). 

 

For many years I have brought fixed deposit bankbook, copies, and a bank letter dated the day before to CW.   In 2019 the IO was confused by the bankbook date, but her supervisor clarified matters.  When I renewed last month there was not a problem.    Mileage may vary, but ... 

 

-- Retiree

[JimGant]

Some other considerations......

1. With today's low interest rates, there's very little opportunity cost by having a regular savings account over a fixed deposit account.

2. You can set the savings account (at least at Bangkok Bank) to be a co-signatory account, meaning your wife/significant other can tap that account anytime -- at the counter, with her own ATM to the account, or online -- legally. And Immigration considers these accounts single accounts, not joint (her signature is not visible, except under UV). Obviously, if you have a flighty wife, and you need to maintain 800k in the account for Immigration purposes, well then, maybe a bad idea....

But, assuming she's a good wife, and she's the sole beneficiary of your bank account per your Will, then, upon your death, she can empty (well, most of it -- can't close the account) your account to her pocket. As a co-signatory, no one would object, probably even knowing you're dead (which could have a legal angle, but not much, if you're the sole beneficiary and no one is contesting).

Anyway, the point of this is that, as I don't believe fixed accounts can have co-signatories, by having a savings account pass to your wife, you can avoid probate -- which, per some accounts, can run up to 50,000 bt. With a fixed account, I'm not sure how the wife closes out the account -- without a notice of probate....

Much discussion about this on the Will threads.

Edited July 21, 2020 by JimGant

[moontang]

Yes, now the difference is less than ever, that's why I switched to krungsri Mae Tai Dee, which is paying more than the FD choices at most banks.  I wouldn't settle for the <deleted> ones from BBL , SCB, and KTB, though.  Partially, because they were offering the same <deleted>, below .5% while I was getting over 3% in the same shopping mall, on the same floor.  Caught them on some kind of underhanded tactics, too, and others have reiterated similar stories.  You sit there for 40 minutes, then they hand you a book and the rate is .1250 less than the sign in the window, on the door, on the wall, and on her desk.  I am always willing to go out of my way to teach people that petty cheating actually hurts you in the long run.  Now, they really don't care about the depositors as they don't have anyone to loan it to.  It is worth something, for your branch to be as close to the IO as possible, but even then, you have to look out for agent touts.  As far as getting an extension without a very recent update..not surprising, but that could come back to bite you in the <deleted>, and that is the kind of thing that can cause a chain reaction of difficulties, like needing a letter or statement that will take a week, when you only have five days left..etc.

 

I would rather have 50k come out of my estate, than someone being able to withdrawal from my account.  Heard of them ripping up passports in anger, and that girl works at a hospital, and not a bar...people are vindictive by nature, women moreso.

Edited July 21, 2020 by moontang

[USNret]

Two other things to keep in mind... whatever the amount of your initial deposit, that amount cannot be touched for the fixed period.  Open it with 2000THB, then a few days later add the rest.  This makes it so only the 2000THB is "locked" for the fixed period.

Secondly (at least with Bangkok Bank) there is entirely no way for me to get that money outside of the province where you opened the account. I opened it at Bangkok and now I'm in Hua Hin... I cannot get at my money!  They said I can close the account and transfer the funds to a regular savings account... that process will take 3-4 weeks. 

Edited July 21, 2020 by USNret

[moontang]

51 minutes ago, USNret said:

Two other things to keep in mind... whatever the amount of your initial deposit, that amount cannot be touched for the fixed period.  Open it with 2000THB, then a few days later add the rest.  This makes it so only the 2000THB is "locked" for the fixed period.

Secondly (at least with Bangkok Bank) there is entirely no way for me to get that money outside of the province where you opened the account. I opened it at Bangkok and now I'm in Hua Hin... I cannot get at my money!  They said I can close the account and transfer the funds to a regular savings account... that process will take 3-4 weeks. 

In the first case..the 2000 is locked under the terms of the FD..Any additional deposits, would be separate FDs, even though they would likely be in the same book.  I have four months left on a FD paying 2.5%, would add a bundle to it right now if I could, but they would likely laugh at my face for thinking the interest would be the same. Now, to be safe, it would be better to have 8 x 100ks, if there was any chance you would need to redeem, as you would only have to redeem the ones needed, and only forfeit the better interest rates on those, but..having 8 FD would generate a lot of extra entries and pages in your book, and bozo the immigration clown is going to express his dissatisfaction.

 

Now, I have never redeemed an FD out of province, but withdrawals on regular savings accounts incur a fee, as well as deposits.  All of BKK metro is under the same umbrella, so I can deposit and withdrawal in BKK while the account is in Nonthaburi.  Today, they might say you can only do something staying at your home branch..next week you might be able to do it hassle free in Nakorn Nowhere.  Depends on the wind.  Example, is bank letter for real estate transaction.

 

Edited July 21, 2020 by moontang

[DrJack54]

The OP had his answer in post #2.

Also couple of helpful comments after that. Post that has just been financial chit chat.

Most folk that opt for FD don't do it for the interest rate (especially now). I use FD for retirement extensions to avoid stuff up. 

The many many posts regarding withdrawals etc means folk needing to access funds should stick to a savings a/c

Simple really.

 

[moontang]

11 minutes ago, DrJack54 said:

The OP had his answer in post #2.

Also couple of helpful comments after that. Post that has just been financial chit chat.

Most folk that opt for FD don't do it for the interest rate (especially now). I use FD for retirement extensions to avoid stuff up. 

The many many posts regarding withdrawals etc means folk needing to access funds should stick to a savings a/c

Simple really.

 

How do you know why most do it?  Most of your buddies at the food court, maybe.  Many have been using <deleted> accounts for years, but yes, the difference is less now.  A good reason to have it in FD is that there is no possible way it could be liquidated with an ATM card..

[Charlie]

Questions on Fixed Deposit for Retirement renewal.

How to update the Fix Deposit on the same day ?

Do I need to deposit some money on that Fix Deposit to get it updated ?

Or the bank will just update it on that day without putting in some money ?

Will the bank give me a letter showing it that it is updated on that day ?

Your kind reply and advice is much appreciated.

Thanking you all in advance.

 

[moontang]

2 minutes ago, Charlie said:

Questions on Fixed Deposit for Retirement renewal.

How to update the Fix Deposit on the same day ?

Do I need to deposit some money on that Fix Deposit to get it updated ?

Or the bank will just update it on that day without putting in some money ?

Will the bank give me a letter showing it that it is updated on that day ?

Your kind reply and advice is much appreciated.

Thanking you all in advance.

 

I already addressed the update conundrum.  Read page one, and ask again.

[USNret]

29 minutes ago, Charlie said:

Questions on Fixed Deposit for Retirement renewal.

How to update the Fix Deposit on the same day ?

Do I need to deposit some money on that Fix Deposit to get it updated ?

Or the bank will just update it on that day without putting in some money ?

Will the bank give me a letter showing it that it is updated on that day ?

Your kind reply and advice is much appreciated.

Thanking you all in advance.

 

Mine is at Bangkok Bank; they have a branch at Chaeng Wattana that never has more than 2 or 3 people in line.  So when I need an updated bank book for immigration, I make a deposit of 2000THB (the minimum allowable deposit), update the book, then walk across and make a copy.  The bank takes less than 5 minutes to create a letter, if a letter is needed. 

You kind of have to add money just to "prove" to immigration that the balance is current. 

[DrJack54]

1 hour ago, Charlie said:

Do I need to deposit some money on that Fix Deposit to get it updated ?

You have correct advice post #22.

I extend CW. Do all your bank book photocopy. Give bank clerk money for bank letter and money for FD deposit. For my Green K bank min is 1000baht. Also ask bank clerk to photograph this update.

They already know what you need. 

If your using 2 accounts you will need letters for both and update and activity for both accounts. 

[bbudd]

All I can say is Mae Sai immigration wouldn't accept a foreign currency fixed deposit account

Even with it being in bank for numerous years and accompanied by bank letter to that effect

Probably best to check with your local immigration before applying