clarification on bank account protection of only 1 million baht per account.

[In Full Agreement]

I've read  in a few places this new limit of one million is per bank account.     I don't see where it says  a person can't have several accounts each of which is under one million at the same bank.

 

My Missus thinks the  protection limit is based on a per name  basis  in Thailand as a whole, meaning each Thai  citizen or falang can only have protection up to one million baht   in a  Thai savings account.

 

From an earlier link:

"As the DPA will reduce insu-rance protection from Bt50 million per bank account to only Bt1 million from August this year, it will also bring fund flows to the GSB, a |state-run bank that provides 100-per-cent protection to customers, he said."

[CharlieH]

My understanding is "per accoun/ bank" so 5 mil in one no,but 5 x 1 in seperate banks is ok.

 

 

Edited to correct error.

[blackcab]

Deposit protection is on a per depositor, per institution basis. It doesn't matter how many accounts you have with the same institution, only a maximum of 1 million baht is protected at each institution.

 

However, you could open accounts at multiple institutions. In this way you could have up to 1 million baht protected multiple times.

[tifino]

this'll keep many an Actuary in a job for yonks... working it all out...  

 

[Havefunme]

https://www.bangkokbank.com/en/Personal/Tips-and-Insights/Save-and-Invest/Practical-advice-on-deposit-protection

[Bob12345]

Due to the mortgage our account is 10 million negative. If the bank collapses, would that also wipe out 9 million of my debt?

[Pedrogaz]

The smart will borrow lots of money from banks to hedge against the institution's collapse. Use the borrowed money to buy rental homes and physical precious metals.

If you have bank accounts with lots of money in them, it is probably time to reduce your exposure.

Edited August 8, 2021 by Pedrogaz
add

[Etaoin Shrdlu]

13 minutes ago, Bob12345 said:

Due to the mortgage our account is 10 million negative. If the bank collapses, would that also wipe out 9 million of my debt?

Unfortunately not. Your loan is considered an asset on the balance sheet of the bank and would be sold or assigned to another lender in the event of your bank's insolvency. Somewhere in the fine print of your loan document there is likely wording that gives the bank the right to do that.

[brucegoniners]

[nickmondo]

21 hours ago, CharlieH said:

My understanding is "per account" so 5 mil in one no,but 5 x 1 is ok.

not correct.

you cannot have five accounts with Bkk Bank (eg) each with 1 million, you would be protected for only 1 million

but you can have 1 million in various banks, ie, Kasikorn, Krungsri, BKK, SCB. 

[nickmondo]

1 hour ago, Pedrogaz said:

The smart will borrow lots of money from banks to hedge against the institution's collapse. Use the borrowed money to buy rental homes and physical precious metals.

If you have bank accounts with lots of money in them, it is probably time to reduce your exposure.

try doing that as a farang

good luck with that

[nickmondo]

43 minutes ago, brucegoniners said:

great advice, and a good safe to put the box in

[kingstonkid]

20 hours ago, Havefunme said:

https://www.bangkokbank.com/en/Personal/Tips-and-Insights/Save-and-Invest/Practical-advice-on-deposit-protection

reading this link it says Thai baht deposits only. I guess that means if you have an American dollar or such account there is no protection

[xylophone]

7 minutes ago, nickmondo said:

not correct.

you cannot have five accounts with Bkk Bank (eg) each with 1 million, you would be protected for only 1 million

but you can have 1 million in various banks, ie, Kasikorn, Krungsri, BKK, SCB. 

I have just yesterday split my accounts between Bkk Bank and SCB and feel a lot happier now.........just in case, you understand!

[fulhamster]

Does this include funds deposited in bonds ??

 

[userabcd]

9 hours ago, Pedrogaz said:

The smart will borrow lots of money from banks to hedge against the institution's collapse. Use the borrowed money to buy rental homes and physical precious metals.

If you have bank accounts with lots of money in them, it is probably time to reduce your exposure.

The debt will still have to be repaid to the bank or to whomever the debt is sold.

[userabcd]

7 hours ago, fulhamster said:

Does this include funds deposited in bonds ??

 

What is covered from the DTA website

Protected Deposit Products

     Protected deposit products are deposit accounts that are opened at member financial institutions under the Deposit Protection Agency Act. They must be denominated in Thai baht and must be opened within the country. Currently, there are 5 types of protected deposits:

• Current deposit accounts
• Savings deposit accounts
• Fixed deposit accounts
• Certificates of deposit
• Deposit receipts

     Financial products or certain deposit products that are not protected include:

• Foreign currency deposit accounts
• (SSF, RMF) Money invested in bonds, debentures, mutual and tax-saving funds (SSF and RMF)
• Deposits in cooperatives
• Cashier’s cheques and bills of exchange
• Electronic money (e-money)
• Savings insurance products offered by insurance companies

[TigerandDog]

21 hours ago, blackcab said:

Deposit protection is on a per depositor, per institution basis. It doesn't matter how many accounts you have with the same institution, only a maximum of 1 million baht is protected at each institution.

 

However, you could open accounts at multiple institutions. In this way you could have up to 1 million baht protected multiple times.

please read the report copied here FYI. "

From an earlier link:

"As the DPA will reduce insu-rance protection from Bt50 million per bank account to only Bt1 million from August this year, it will also bring fund flows to the GSB, a |state-run bank that provides 100-per-cent protection to customers." NB: the THB 50 million in the quote should be THB 5 million. Not sure about the GSB providing 100% protection. Will check that one out.

So it's per account, NOT per depositor.  Also bear in mind most banks will only allow you to have 1 of each type of savings account they offer e.g. ttb ( formerly TMB ) will only allow me to hold 1 All Free account and 1 Non fixed account. They won't even allow me to open either of these accounts as a joint account as I already have my name on both types of accounts as does my wife. So accounts with other banks will have to be a consideration.

Edited August 8, 2021 by TigerandDog

[Brick Top]

I have to resort to stuffing my mattress with my cash soon , these banks have to many unsecured loans out in my opinion

[blackcab]

29 minutes ago, TigerandDog said:

So it's per account, NOT per depositor.

 

You are wrong. Please read the second sentence from this page from the Deposit Protection Agency website:

 

https://www.dpa.or.th/en/articles/view/who-is-protected

 

The DPA website states:

 

"Protection is based on a per depositor per institution basis, meaning that all of an individual’s deposit accounts across all branches of that financial institution will be aggregated into a single amount."

 

As I stated earlier, deposit protection is on a per depositor, per institution basis.

[Sambora]

Thank you all for consolidating the information, much appreciated.

 

I understand that juristic depositors such as companies and funds are included, meaning:

 

1. a company that holds a corporate bank account is subject to the protection and NOT the individual director that holds the share majority, meaning that if the corporate account has a THB 1 Million deposit but the individual director has personal deposit accounts exceeding the protection, the deposit in the corporate account is still protected?
2. saving funds e.g. SSF are included in the protection act and count towards the ‚per depositor per institution‘ limit, meaning that if I hold a personal deposit account of THB 1 million and have THB500K in my funds, then this fund is not protected.

Is my understanding here correct?

[topt]

1 hour ago, kingstonkid said:

reading this link it says Thai baht deposits only. I guess that means if you have an American dollar or such account there is no protection

Foreign Currency accounts are not covered.

[brucegoniners]

2 hours ago, nickmondo said:

great advice, and a good safe to put the box in

Indeed.

[userabcd]

7 hours ago, Sambora said:

Thank you all for consolidating the information, much appreciated.

 

I understand that juristic depositors such as companies and funds are included, meaning:

 

1. a company that holds a corporate bank account is subject to the protection and NOT the individual director that holds the share majority, meaning that if the corporate account has a THB 1 Million deposit but the individual director has personal deposit accounts exceeding the protection, the deposit in the corporate account is still protected?
2. saving funds e.g. SSF are included in the protection act and count towards the ‚per depositor per institution‘ limit, meaning that if I hold a personal deposit account of THB 1 million and have THB500K in my funds, then this fund is not protected.

Is my understanding here correct?

1) yes in the company bank account (s) up to 1 million baht per institution.

2)SSF - see DPA clarification below as to what is protected (I read SSF is not protected being it is an investment product)

 

Who is protected?

     Individual depositors are automatically protected upon opening a deposit account with a financial institution as prescribed in the Deposit Protection Agency Act B.E. 2551 (2008). Protection is based on a per depositor per institution basis, meaning that all of an individual’s deposit accounts across all branches of that financial institution will be aggregated into a single amount.

     Juristic depositors such as companies, funds, foundations, temples, associations, and cooperatives are also protected in the same manner as individual depositors.
     Foreigners with Thai baht deposit accounts at member financial institutions in Thailand are also protected under the Deposit Protection Agency Act. However, “Non-Resident Baht Accounts” as defined in the Exchange Control Act B.E. 2485 (1942) are not protected.

 

Remark:

A “Non-Resident Baht Account” is a special type of deposit account denominated in Thai baht that is used solely for transactions as specified in the Exchange Control Act. A “Non-Resident” means:

1)  Corporations, institutions, funds, financial institutions or juristic persons located outside Thailand.
2)  Entities of foreign governments located outside Thailand.
3)  Branches and agents of domestic juristic persons located outside Thailand
4)  Natural persons not of Thai nationalities and not having alien identity or residence permits.

However, “Non-Residents” exclude:

1)  Thai embassies, Thai consulates or other entities of Thai government located outside Thailand.
2)  Foreign embassies, foreign consulates, specialized agencies of the United Nations, international organizations or institutions (both financial and non-financial) located in Thailand.
3)  Branches and agents of foreign juristic persons located in Thailand.

 

Protected Deposit Products

     Protected deposit products are deposit accounts that are opened at member financial institutions under the Deposit Protection Agency Act. They must be denominated in Thai baht and must be opened within the country. Currently, there are 5 types of protected deposits:

• Current deposit accounts
• Savings deposit accounts
• Fixed deposit accounts
• Certificates of deposit
• Deposit receipts

     Financial products or certain deposit products that are not protected include:

• Foreign currency deposit accounts
• (SSF, RMF) Money invested in bonds, debentures, mutual and tax-saving funds (SSF and RMF)
• Deposits in cooperatives
• Cashier’s cheques and bills of exchange
• Electronic money (e-money)
• Savings insurance products offered by insurance companies

Edited August 8, 2021 by userabcd

[Hindy]

3 hours ago, xylophone said:

I have just yesterday split my accounts between Bkk Bank and SCB and feel a lot happier now.........just in case, you understand!

why did you go with SCB any particular reason?

[Knocker33]

Not being funny . But I rarely take any notice of what my wife thinks on money matters .

[jcojco]

5 hours ago, kingstonkid said:

reading this link it says Thai baht deposits only. I guess that means if you have an American dollar or such account there is no protection

That's right

[Mickeymaus]

It is a great idea with all the non performing loans because of Covid to reduce the deposit insurance now... Best is to move all your money to the state owned GSB if you can open an account there. This will even put more pressure on the other banks... 

[xylophone]

3 hours ago, Hindy said:

why did you go with SCB any particular reason?

I had an old account with them which I hadn't used for ages, but it was still on their records so it made things a lot easier.

[unblocktheplanet]

I'm no economist (ask my wife!) but this sure smells like a run on the banks--all of them--to me. Every Thai I know is talking about this.

 

Govt (if you can call it that) is waaay overextended due both to Covid & the economy. The fatcats are still filling their pockets. So how do they keep their money safe?