Thai Bank Accounts

[bernie66]

I have not opened an account in Thailand yet but I was planning on getting around to it this year. I just haven’t decided what percent of my money I want to move to Thailand. I have heard negative comments on such matters as limitations on transfers and false interest rates. Please fill me in on all your negative experiences and dislikes so that I can make a more intelligent decision before putting the majority of my money into a Thai account. My initial impression was normal interest rates being taxed at only 1% at the end of the year. I was told that the income tax in Thailand is only 1%. So my plan was to have eventually enough money in a 1 year secured account as to pull 5% interest annually. That is for example $300,000 US in a Thai bank account would pull $745 a month annually and I would only be taxed %1 instead of %30 percent as I would be in the States. And I could retire on the $745 a month. This seems to me, a safer deal than the American stock market that i have absolutely no faith in. Please feel free to shatter all my dreams of grander and ridiculess expectation of being able to retire before my pecker no longer works.

[cmsally]

From what I can see at the moment the max interest you can get here is around 3%, if anyone finds more please let me know. I find they are all taxed on interest, from what I have seen on my interest payments it seems to be around 10-15%, would have to check on that not positive. You can get some deals on different accts and funds etc. but nothing remotely tempting at the moment from what I have seen.

[Artamus]

From what I can see at the moment the max interest you can get here is around 3%, if anyone finds more please let me know. I find they are all taxed on interest, from what I have seen on my interest payments it seems to be around 10-15%, would have to check on that not positive. You can get some deals on different accts and funds etc. but nothing remotely tempting at the moment from what I have seen.

One thing to take into account is inflation, so the buying power at 5% on 300,000 after 10 years will be somewhere around half of what it is today. You'd need to transfer more money in regularly to take account of that.

Personally I'd be very hesitant to hold such an amount in Thailand. Getting it in will be a lot easier than getting it out. Why not hold it in Hong Kong or Singapore or any one of a number of overseas locations are transfer in the living requirements?

[bernie66]

I heard India is giving 5 and 6%,just a thought though. I might just go with Munich or Switzerland.

[endure]

From what I can see at the moment the max interest you can get here is around 3%, if anyone finds more please let me know. I find they are all taxed on interest, from what I have seen on my interest payments it seems to be around 10-15%, would have to check on that not positive. You can get some deals on different accts and funds etc. but nothing remotely tempting at the moment from what I have seen.

That tax can be reclaimed at the end of the year.

[Jingthing]

You could get 5 percent safely in a US bank CD. So that is 15K dollars a year. There is no way that is anywhere near a 30 percent tax bracket. I would be concerned about getting that large an amount out of Thailand.

If I were you, I would put most of it in the world stock market. Much better chance of doing better than 10 percent return over the long term. If you can only get 5 percent, your 300K isn't enough.

Edited June 30, 2007 by Jingthing

[astral]

I will repeat my maxim.

Do not bring more money into Thailand, than you are prepared to walk away from.

Up to 1997 the exchange rate was pegged at 25/US$1.

Until recently it was hovering at 40/US$1.

I know it is better at the moment, but look at the state of the government (military)

and the general state of the economy.

[solo siam]

I thought that the Banks generally didn't pay any interest to foreigners holding accounts.

Besides the interest rate has dropped significantly here, We started a fixed deposit savings account 6 months ago and the interest rate was 3.75%, it's now 2.25%.

[Jingthing]

Aren't there fixed rate bond type instruments you can buy from banks that pay a much higher rate?

[Badbanker]

At this point in time I agree that it is probably not safe to bring a large amount of money into Thailand to convert into Thai Baht.  The exchange rate is all wrong to.   There are way too many things in flux at the moment.  If you want to come here and open a USD non-resident account you will get almost no interest and have a tax issue and restrictions as to what you can do with you money.   You may even be restricted in your ability to transfer all of it out of the country.

I still think Singapore is a better deal as it seems they have less morals and ask less questions both of which are better ways of handling personal assets.  Also have some good funds that are very safe!

BB