Is a sizeable amount of money in a Thai Bank "Safe "

[33 RPM]

i wish to transfer a substantial amount of money from my Australian bank account into My Kasikorn Bank account here in the order of $ 700,000 AUD for a housing project

my question is,

is that money safe and guaranteed in Kasikorn bank ?

i read sometime back, that only deposits up to an amount of 1 Mill THB  ?? was guaranteed..

 is that correct ?

if a bank is not a safe place " lord forbid " to park money

what other institution is safe

in your learned opinions..

Thank You.

 

[saakura]

You might want to check if the amount in the Australian Bank is guaranteed 100%?

[Kwasaki]

I use Bkk bk for 2 years had 800,000 in it and for 15 years has had 400,000 in it. 

[33 RPM]

Why ??  i know the money in the Australian Bank IS guaranteed the way the account/s are set up

t

[scubascuba3]

Maybe split between several accounts, i think only 1m baht is covered, but how secure is that anyway if many banks fold

[KhunLA]

Quote

 

i read sometime back, that only deposits up to an amount of 1 Mill THB  ?? was guaranteed..

 is that correct ?

 

correct

[Kwasaki]

1 minute ago, scubascuba3 said:

Maybe split between several accounts, i think only 1m baht is covered, but how secure is that anyway if many banks fold

I thought it was the other way around that is I  understood the banks in Thailand are backed up by the Thai Govt to safeguard people's money in bank accounts up to 1 mil. 

[scubascuba3]

7 minutes ago, Kwasaki said:

I thought it was the other way around that is I  understood the banks in Thailand are backed up by the Thai Govt to safeguard people's money in bank accounts up to 1 mil. 

I'm pretty sure it's 1m per bank, I haven't double checked it but usually it's a compensation fund but is based on 1 or 2 banks folding not if many folding the same time, but banks here seem safer than anytime in the last 2 years

[kokesaat]

If your 'housing project' is building a house, why not bring over the money as you need it, say 100k at a time?  

 

We've been here for 26 years.....through the collapse of the Thai economy in 1997.  No one that we know of, expat or Thai, lost any money in reputable Thai banks....Bangkok Bank, Siam Commercial, Kasikorn, etc.  For a brief period in 1997, there were some limitations on expats withdrawing all their money unless an outbound ticket was presented.  That lasted probably less than a month or two.  

 

If you're concerned about the amount covered by government insurance, spread it out.  

 

For me, I'd sleep soundly with several million baht parked in a Thai bank account.

[Kwasaki]

6 minutes ago, scubascuba3 said:

I'm pretty sure it's 1m per bank, I haven't double checked it but usually it's a compensation fund but is based on 1 or 2 banks folding not if many folding the same time, but banks here seem safer than anytime in the last 2 years

Well these days I don't have to worry about it, I'm sure I read sometime back that Bkk bk was a safe bank. 

[Chivas]

What you have to remember and think about is if something goes pear shaped, money goes missing or God forbid a bank fails you are going to be at the back of a very long queue to rectify the issue

 

You or I would get the standard look from a Bank employee at which points he/she walks away and attends someone else lol

 

Keep the Visa amount in there yes but absolutely no more than that

[GroveHillWanderer]

1 hour ago, 33 RPM said:

Why ??  i know the money in the Australian Bank IS guaranteed the way the account/s are set up

t

No country (as far as I'm aware) gives unlimited guarantees on bank deposits.

 

According to the Australian Securities and Investment Commission website, in Australia:

 

Quote

the Government guarantees deposits up to a cap of $250,000 per account-holder.

Australian Government guaranteed deposits seal

 

So if you had $750,000 in an Australian bank, only a third of it would be guaranteed.

[TallGuyJohninBKK]

As a result of the Asian Financial Crisis, Thailand years ago implemented a government backed deposit protection law similar to the U.S. FDIC deposit insurance.

 

Except....while the per bank, per depositor limit on that started out very high in years past, it's gradually been reduced now to only 1 million baht per depositor, per Thai commercial bank (the law doesn't apply to government owned banks here).

 

Any amount over 1M baht per depositor, per bank is no longer protected/guaranteed by the Thai government. And worth noting, the government deposit insurance only protects against total financial failure of the bank, and NOT against fraud or theft from bank accounts, including by bank employees.

 

https://www.dpa.or.th/en/site/index

 

Foreigners also have to be aware/careful of how the Thai bank classifies their account (as resident or non-resident status) at opening, because of the following language in the law:

 

"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:

...
4)  Natural persons not of Thai nationalities and not having alien identity or residence permits."

 

[DrJoy]

2 hours ago, 33 RPM said:

read sometime back, that only deposits up to an amount of 1 Mill THB 

Correct.

Only Thai baht accounts are protected, USD/EUR accounts not protected.

 

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.

 

If a member financial institution’s license is revoked, depositors of that institution will receive their deposits from the Deposit Protection Agency up to the coverage limit. The coverage is based on a per depositor per institution basis (not one account per institution), meaning that depositors with multiple accounts across all branches of that institution will have those deposits - both principal and interest - aggregated into a single amount.

     The current coverage limit is 1 million baht

 

https://www.dpa.or.th/en/articles/view/protection-limit

[Robin]

Can you imagine any circumstances in which a large bank like Kasikorn is unable to pay out?  

I think that if that was to happen, there would be more to worry about than money.

If you are bringing the money in to fund a venture in Thailand, more likely that the venture would fail.

My rule, only a personal one, is that what you bring into Thailand will most likely have to stay in Thailand, and to be prepared to lose any money invested in a Thai venture.

[Iamfalang]

2 hours ago, TallGuyJohninBKK said:

NOT against fraud or theft from bank accounts, including by bank employees.

Sorry, falangs.  All your money (100 million across accounts) have been stolen.  you get nothing.   Thais, good news, everyone gets 100 baht for free.  lol

 

This key note is troubling.    800,000 baht is just enough to be mad about losing for a very long time.   anything can happen, we've been warned and know the risks.

[DezLez]

18 minutes ago, Robin said:

My rule, only a personal one, is that what you bring into Thailand will most likely have to stay in Thailand, and to be prepared to lose any money invested in a Thai venture.

My motto is "if you want to leave Thailand with a small fortune start with a big fortune and run when it gets too small".

[Liverpool Lou]

4 hours ago, TallGuyJohninBKK said:

it's gradually been reduced now to only 1 million baht per depositor, per Thai commercial bank (the law doesn't apply to government owned banks here).

"the law doesn't apply to government owned banks here"

Really?  So which government owned banks are excluded from the scheme in your mind?

[sanuk711]

4 hours ago, kokesaat said:

We've been here for 26 years.....through the collapse of the Thai economy in 1997.  No one that we know of, expat or Thai, lost any money in reputable Thai banks....Bangkok Bank, Siam Commercial, Kasikorn, etc.  For a brief period in 1997, there were some limitations on expats withdrawing all their money unless an outbound ticket was presented.  That lasted probably less than a month or two.  

Yer I remember that well--- I had never seen anything like it before--I guess that sort of thing is really rare.  Banks here are as safe as any bank --just make sure you get your paper work correct in case you need to move on to somewhere else--or back home.

[Hamus Yaigh]

6 hours ago, 33 RPM said:

is that money safe and guaranteed in Kasikorn bank ?

Why not phone them and ask - their help line is very good? KBank has been around 77 years, why would you think it will fail you now you are building a house? I am sure there are many other pitfalls to worry over in that respect.

[Lacessit]

I would split the money between a number of accounts, all less than the 1 million guarantee. I seem to remember an aphorism about putting all one's eggs in one basket.

I would also be bringing the money across in stages, safer.

$700,000 on current exchange rates is 17.5 million baht, that's one hell of a big property. I am wondering why anyone would spend that much money on a project when they cannot own the land underneath it.

[33 RPM]

i thank you all for your insights and suggestions

i am aware of the mechanisms in place in Aust and have those bases covered

like most things in life, its a judgement call

ill just have " to choose wisely "

 

 

 

[Chivas]

On 7/29/2022 at 11:28 AM, Iamfalang said:

Sorry, falangs.  All your money (100 million across accounts) have been stolen.  you get nothing.   Thais, good news, everyone gets 100 baht for free.  lol

 

This key note is troubling.    800,000 baht is just enough to be mad about losing for a very long time.   anything can happen, we've been warned and know the risks.

Exactly and that was the point I made further up the thread

The thread is full of claims that Government backs banks to the tune of 1 Million baht per account.....can you just imagine the process to make a claim !!

 

First point they'll make is "well you're a foreigner and if you hadnt put money in our bank it woyldnt have happened"

 

Do you see where I'm going lol

 

If the shight hits the fan we're absolutely stuffed

[topt]

On 7/29/2022 at 7:02 PM, Liverpool Lou said:

"the law doesn't apply to government owned banks here"

Really?  So which government owned banks are excluded from the scheme in your mind?

Here is a list of the companies covered - 

https://www.dpa.or.th/en/articles/view/list-of-insured-financial-institutions

 

I don't see the GSB on there for example?

[djlest]

From what i have read none of our money has any protection whatsoever!

https://www.dpa.or.th/Protected-Depositors

 

Deposits in “Non-Resident Baht Accounts” are not protected by the Deposit Protection Agency as this is a special type of deposit account denominated in Thai baht that is used solely for specific transactions as prescribed in the Exchange Control Act B.E. 2485 (1942).

[Etaoin Shrdlu]

11 minutes ago, djlest said:

From what i have read none of our money has any protection whatsoever!

https://www.dpa.or.th/Protected-Depositors

 

Deposits in “Non-Resident Baht Accounts” are not protected by the Deposit Protection Agency as this is a special type of deposit account denominated in Thai baht that is used solely for specific transactions as prescribed in the Exchange Control Act B.E. 2485 (1942).

 

My understanding is that Thai banks request proof of an address in Thailand so that they may open a resident account for the applicant. No Thai address is required to open a non-resident account. If you provided a Thai address, then you most likely have a resident account and are protected.

 

[topt]

2 hours ago, djlest said:

From what i have read none of our money has any protection whatsoever!

https://www.dpa.or.th/Protected-Depositors

 

Deposits in “Non-Resident Baht Accounts” are not protected by the Deposit Protection Agency as this is a special type of deposit account denominated in Thai baht that is used solely for specific transactions as prescribed in the Exchange Control Act B.E. 2485 (1942).

This was discussed at length in one of the many threads on the DPA. 

Presuming you are not trolling have you actually looked up what the "special types of deposit account"are or what "specific transactions " they apply to.

 

As you have conveniently ignored the first part of the link you posted -

Quote

Protected depositors consist of 2 types:

1.    Retail depositors of both Thai and foreign nationalities*

The asterisk then refers to the special deposit accounts........

 

Also the comment you made were covered in more than one of the earlier posts in the thread so curious why you have even posted what you did........

[Lorry]

3 hours ago, topt said:

This was discussed at length in one of the many threads on the DPA. 

Presuming you are not trolling have you actually looked up what the "special types of deposit account"are or what "specific transactions " they apply to.

 

As you have conveniently ignored the first part of the link you posted -

The asterisk then refers to the special deposit accounts........

 

Also the comment you made were covered in more than one of the earlier posts in the thread so curious why you have even posted what you did........

The DPA website just says,  non-resident baht accounts are not protected. 

I remember @Mike Lister saying in another thread that our accounts usually ar non-resident accounts.

I am not aware of the old threads (didn't read any) and AN is not searchable. 

Could you please summarize your knowledge here?

And how do I find out whether I have a resident account or a non-resident account?

[mstevens]

I think Thai banks are basically safe. Not as safe as a bank would be in Australia, but pretty close.

 

My worry would be if anyone you know in Thailand was aware you had that amount in the bank. That's a huge amount of money. Some unscrupulous folks could devise a plan to part that money from you. Very unlikely, of course, but not beyond the realms of possibility.

 

I know this is not what you asked about but for me personally, if I had anywhere near that amount of money in my Thailand bank account I would not let anyone know about it.

[Mike Lister]

5 hours ago, Lorry said:

The DPA website just says,  non-resident baht accounts are not protected. 

I remember @Mike Lister saying in another thread that our accounts usually ar non-resident accounts.

I am not aware of the old threads (didn't read any) and AN is not searchable. 

Could you please summarize your knowledge here?

And how do I find out whether I have a resident account or a non-resident account?

My knowledge of non-resident bank accounts in Thailand is now dated, it stems from 15 years ago when HSBC Thailand opened my account as a non-resident. When quizzed as to why, my assigned Premier Team contact told me it was standard practise that saved a lot of problems with repatriation of funds and tax. That made a lot of since to me in that the only downside was I was unable to earn interest and/or deposit THB cash. A link below explains the differences.

 

Subsequent discussions in forums showed that most foreigners didn't know what sort of account they held and that hardly any knew there are two different types. It was later shown that some held resident accounts, some held non-resident accounts. When HSBC Thailand retail banking closed, I transitioned to two Thai banks where I was automatically given resident accounts. There has been a transition from a default, non-resident account, to a resident account, except in the case of Foreign Currency Accounts where non-resident accounts for foreigners are common.

 

https://www.tilleke.com/insights/banking-thailand-resident-or-non-resident-account/