Fixed Accounts - Relatively High Interest

[macahoom]

Looking for a relatively high interest rate?

 

GSB have a 30 month fixed account paying 1.83%, no tax deducted. This is equivalent to 2.15%, before tax. The interest rate for the final six months is 5%, so closing before maturity would not be prudent. Open to non Thais, but no joint accounts.

 

Until the end of August, CIMB have a 24 month fixed account paying 1.9%, tax deducted = 1.615%. Open to non Thais, but no joint accounts.
.

Edited August 17, 2022 by metisdead
ALL CAPS removed from topic title.

[worgeordie]

Just shows how bad things are when we can get excited

over 1.83 % interest , I remember the good old days when

I got 18 % on 3 months fixed, 

regards Worgeordie

 

[macahoom]

2 minutes ago, worgeordie said:

Just shows how bad things are when we can get excited

over 1.83 % interest , I remember the good old days when

I got 18 % on 3 months fixed, 

regards Worgeordie

 

Yeh, that's why I used the word relatively.

[peterfranks]

25 minutes ago, worgeordie said:

Just shows how bad things are when we can get excited

over 1.83 % interest , I remember the good old days when

I got 18 % on 3 months fixed, 

regards Worgeordie

 

Though I think that at those times when you got 18%, things were much worse than today, and inflation must have been rampant

[Sparktrader]

51 minutes ago, worgeordie said:

Just shows how bad things are when we can get excited

over 1.83 % interest , I remember the good old days when

I got 18 % on 3 months fixed, 

regards Worgeordie

 

Minus after inflation

 

Bhp yield 11%

[Pib]

1 hour ago, worgeordie said:

Just shows how bad things are when we can get excited

over 1.83 % interest , I remember the good old days when

I got 18 % on 3 months fixed, 

regards Worgeordie

 

That must have been back around the late 70s to early 80s when inflation was rampant....I mean super bad inflation....made today's inflation rate look mild.  

 

OR, you mean current day Thailand loan shark rates on the low end. ????

[gamb00ler]

The tax free nature of the accounts that @macahoom referenced won't be of much benefit for those who have no tax obligation in Thailand other than earned interest.  Each taxpayer in Thailand is given an exemption on the first 20K฿ of interest income and also a personal exemption of 30K฿.  Furthermore there is no tax on the first 150K฿ of taxable income (including interest).  I believe that if your income is only from interest, you won't pay ANY tax on the first 200K฿.  Obviously when there is no tax due, the interest rate before and after tax are identical.

 

At a rate of 2%, with no other income you would need 10M฿ on deposit before you pay tax on the interest.

 

Even if you exceed the 200K฿ limit the Thai tax rates don't match the 15% withholding rate until income is greater than 500K฿.

 

Tax rates from the horse's mouth:

https://www.rd.go.th/fileadmin/user_upload/AEC/AseanTax-Thailand.pdf

 

Information on deductions and exemptions:

https://taxsummaries.pwc.com/thailand/individual/deductions#:~:text=Personal allowances,born in or after 2018.

 

 

Edited August 17, 2022 by gamb00ler

[topt]

On 8/17/2022 at 2:31 PM, macahoom said:

GSB have a 30 month fixed account paying 1.83%, no tax deducted.

May be worth noting that GSB are not one of the institutions protected by the DPA Thailand insurance up to 1m baht.

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

 

[macahoom]

26 minutes ago, topt said:

May be worth noting that GSB are not one of the institutions protected by the DPA Thailand insurance up to 1m baht.

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

 

GSB claims that deposits of any amount are 100% secure and guaranteed.

 

GSB claims it is the only bank in Thailand that provides full protection for both deposit and interest.