Thai Government Will Offer Bt50-billion in Savings Bonds to fund COVID-19 Relief Measures

[Jonathan Fairfield]

 

BANGKOK (NNT) - Thailand’s Public Debt Management Office (PDMO) plans to issue "Ying Aom Ying Dai" (the more you save, the more you earn) government savings bonds, worth 50 billion baht, next month, aiming to use the funds to finance state projects to ease the impacts of the pandemic.

 

PDMO Director-General Patricia Mongkhonvanit said on Friday that the interest rates on these PDMO bond tranches reflect the likelihood of higher market rates. PDMO bonds offer an average annual interest rate of 1.80%-1.90% to individual investors, depending on bond terms. The office will also offer the bonds to non-profit organizations at an annual rate of 2.20%.

 

The special savings bonds are available via the "Sasom Bond Mung Kung" e-wallet, abbreviated to "Sor Bor Mor" in Thai on Krungthai Bank’s Pao Tang mobile app, and through four dealer banks. The minimum purchase of these bonds is 1,000 baht, without no maximum. Interest is paid twice a year.

 

The special savings bonds, available via e-wallet, total 10 billion baht with a three-year term, offering a step-up annual interest rate with an average of 1.80%. Eligible investors must be aged 15 or older. The remaining 40 billion baht, from July 12-23, will be distributed through Krungthai Bank, Bangkok Bank, Kasikornbank and Siam Commercial Bank. Investors can subscribe for bonds at their counters, via internet banking or mobile banking apps.

 

-- © Copyright NNT 2021-06-27

 

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[pegman]

My math is rusty. Do I have this right. Should I invest ฿1000 I will get  ฿9 every 6 months in interest. Pass

[jacko45k]

3 minutes ago, pegman said:

My math is rusty. Do I have this right. Should I invest ฿1000 I will get  ฿9 every 6 months in interest. Pass

If all you have is 1000 baht, well go have a meal out. 

Edited June 27, 2021 by jacko45k

[mikebell]

Will Immigration accept bonds of 800,000?  Could someone work out how much this is worth in interest annually?

[jacko45k]

4 minutes ago, mikebell said:

Will Immigration accept bonds of 800,000?  Could someone work out how much this is worth in interest annually?

Probably not.... bonds suggest the money is not accessible. Remember the Catch 22, the 800k is to show you can afford to support yourself, but are restricted from using it!

 

14,400 baht/year minus tax (which can be reclaimed)

Edited June 27, 2021 by jacko45k

[Oxx]

44 minutes ago, Jonathan Fairfield said:

an average annual interest rate of 1.80%-1.90% to individual investors

 

And yet annualised inflation in April was 3.41% (if fell to 2.44% in May).  In other words, you're losing not only access to your money, but purchasing power if you invest in these bonds.

[Nojohndoe]

17 minutes ago, Oxx said:

 

And yet annualised inflation in April was 3.41% (if fell to 2.44% in May).  In other words, you're losing not only access to your money, but purchasing power if you invest in these bonds.

Aha!

And now arrives the new thinking of how to consider Govt. debt.

Repayment is dispensed with and replaced with perpetual reissues of bonds that incrementally yield an advantage due to inflationary devaluation.

Money is only worth today what it can purchase today.

 

[offset]

It does not state the interest rate at the start of the investment, it says average interest rate of 1.8% it also says it is a step up interest rate

[clivebaxter]

Spend it on VACCINES stop trying to stick band aids on a gapping wound

[Caldera]

I'd buy a few just for added diversification, but let me guess, another case of "Thai only" that foreigners cannot participate in?

[Excel]

So the 50 billion will be used for state projects of which 30% will disappear as we all know happens to those very people supporting the issue of these savings bonds ? Did I misunderstand anything ?

[sanuk711]

1 hour ago, Caldera said:

I'd buy a few just for added diversification, but let me guess, another case of "Thai only" that foreigners cannot participate in?

Is there other savings in Thailand that you can not participate in Caldera ?..... I didn't know of any-- then again I'm not one for investing much.

[holy cow cm]

I for one would rather see this disgraceful government do an entire nose dive tank leaving them no choice but to run away fully disgraced before any more of my money goes to help them look as saviors bailing this country out. Those bonds are a joke, and no way would I also support their joint venture railway with the CRCC.

Edited June 27, 2021 by holy cow cm

[rabas]

34 minutes ago, holy cow cm said:

I for one would rather see this disgraceful government do an entire nose dive tank leaving them no choice but to run away fully disgraced before any more of my money goes to help them look as saviors bailing this country out. Those bonds are a joke, and no way would I also support their joint venture railway with the CRCC.

 

Don't mention the word 'tank' ...

 

[holy cow cm]

10 minutes ago, rabas said:

 

Don't mention the word 'tank' ...

 

Not even when used with the word think....

[Sharp]

5 hours ago, Oxx said:

 

And yet annualised inflation in April was 3.41% (if fell to 2.44% in May).  In other words, you're losing not only access to your money, but purchasing power if you invest in these bonds.

And we all know the real inflation rate is higher! 

[Caldera]

2 hours ago, sanuk711 said:

Is there other savings in Thailand that you can not participate in Caldera ?..... I didn't know of any-- then again I'm not one for investing much.

 

It happens occasionally. For example, I tried to open an e-Savings account from within Kasikorn Bank's app, and got the message that it's for Thais only.

 

With this special bond issued by the Thai government, I'd guess there's a good chance that their processes won't be tailored towards foreigners / expect a Thai ID number. Not a big deal. 

[sammieuk1]

One day they will spend the fabled massive foreign currency reserve the one that so says props the Baht up on something useful not watch related????

[sanuk711]

If the Thai's followed the UK in floating a Premium Bond---they would clean up.

For those who don't know the workings of the UK premium bonds-simply put, its a gamble where you can not lose your money. I think the Government  have been running it for more then 70 years. You buy the bond (s)  (at a post office usually) there is no interest paid. Instead the interest rate on all the bonds go into a monthly draw. First prize a million £ and so on right down to £100 prizes, the higher the interest rate the Bank Of England is paying, (The Gov has to match it) so more money goes into the prize pot. You can never lose your initial money and can cash it in within 24 hours at any P.O.

 

At one time you could not have more then £20K but it got so popular that I think its now £50K

From the Gov point of view it is lending money from its citizens at the lowest possible bank rate--- from the great unwashed point of view, if you just had £5-600 it didn't seem worth sticking the money in the bank, might as well have a punt---money was still safe if you needed it.

 

I can just imagine how Gambling mad Thai's would take to this......

 

 

Edited June 27, 2021 by sanuk711

[jacko45k]

32 minutes ago, sanuk711 said:

so on right down to £100 prizes, the higher the interest rate the Bank Of England is paying, (The Gov has to match it) so more money goes into the prize pot. You can never lose your initial money and can cash it in within 24 hours at any P.O.

Right down to £25 prizes actually. They are in a bit of an administrative mess though at the moment after relocating their services and attempting to move to India I believe. Check Trustpilot reviews on them.

[Mr Meeseeks]

Don't know why anyone is still using legacy financial institutions for investments or savings security?

 

Do these people hate having and making money?

[Mr Meeseeks]

1 hour ago, sanuk711 said:

If the Thai's followed the UK in floating a Premium Bond---they would clean up.

For those who don't know the workings of the UK premium bonds-simply put, its a gamble where you can not lose your money. I think the Government  have been running it for more then 70 years. You buy the bond (s)  (at a post office usually) there is no interest paid. Instead the interest rate on all the bonds go into a monthly draw. First prize a million £ and so on right down to £100 prizes, the higher the interest rate the Bank Of England is paying, (The Gov has to match it) so more money goes into the prize pot. You can never lose your initial money and can cash it in within 24 hours at any P.O.

 

At one time you could not have more then £20K but it got so popular that I think its now £50K

From the Gov point of view it is lending money from its citizens at the lowest possible bank rate--- from the great unwashed point of view, if you just had £5-600 it didn't seem worth sticking the money in the bank, might as well have a punt---money was still safe if you needed it.

 

I can just imagine how Gambling mad Thai's would take to this......

 

 

Thai Government Savings Bank already offers something similar and has done for years.

 

Not available for foreigners though.

[heina]

Bank of Thailand gives 500 billions interest free THB to the banks and now cabinet to ask indebted population to buy 2.2% interest bonds?

What the heck is going on?

[Oxx]

32 minutes ago, Mr Meeseeks said:

Thai Government Savings Bank already offers something similar and has done for years.

 

Really? Care to name the product? I thought that gambling (which is what UK Premium Bonds are) was illegal in Thailand.

[sanuk711]

1 hour ago, Mr Meeseeks said:

Thai Government Savings Bank already offers something similar and has done for years.

If Possible--if you have a link Mr Meeseeks---I have looked but if its just for Thai's it will only be in Passa Thai. Like to look --could put something in the wife's name.

[Mr Meeseeks]

14 hours ago, Oxx said:

 

Really? Care to name the product? I thought that gambling (which is what UK Premium Bonds are) was illegal in Thailand.

It's available at the Government bank and for Thais only, other than that I have limited info as it doesn't concern me. 

 

My ex used to put money in her sons' accounts to try to win money every month. Exactly the same premise as you describe, official and totally legal. 

 

As to gambling being illegal, you know the lottery here makes billions right? 

 

 

[Mr Meeseeks]

13 hours ago, sanuk711 said:

If Possible--if you have a link Mr Meeseeks---I have looked but if its just for Thai's it will only be in Passa Thai. Like to look --could put something in the wife's name.

Government Savings Bank mate, they get a card and a number of tickets every month. As I mentioned I just know about it because my ex was doing it so don't know about info online. 

 

My ex's sons when they won received 100thb up to 6000thb in prizes iirc. 

[jacko45k]

3 minutes ago, Mr Meeseeks said:

As to gambling being illegal, you know the lottery here makes billions right?

Both legally and illegally.....

[sanuk711]

2 hours ago, jacko45k said:

Both legally and illegally.....

My wife does the Illegal one--last 2 numbers --- 100 Bt = 10,000 Bt prize,  there are usually a group of 6-7 Ladies all doing about 3 bets each, so- not unusual for one to win and have buy the food for the night.

[hansnl]

8 hours ago, smedly said:

 

 

On 6/27/2021 at 12:00 PM, holy cow cm said:

I for one would rather see this disgraceful government do an entire nose dive tank leaving them no choice but to run away fully disgraced before any more of my money goes to help them look as saviors bailing this country out. Those bonds are a joke, and no way would I also support their joint venture railway with the CRCC.

And replace it with????????

You think that would be better?

Joke......