Deposit with 17% interest rate?

[Goodboybkk]

Dear all,

 

I read an article in bangkok post. It says the government saving bank is offering a deposit with 17% interest rate. 

I really don't understand this since bangkok bank, kasikorn, etc are offering a deposit with bonly 2-3%.

 

Thanks 

[asf6]

Are you sure it is not 1.7% instead of 17%?

 

 

Edit: They are offering 1.75% for a fixed deposit account of 36 months. 

 

https://www.gsb.or.th/personals/เงินฝากประจำ-36-เดือน-2/

.

Edited May 12, 2023 by asf6

[Goodboybkk]

Yes, I am sure.

Open Bangkok post website, then click business.

2 state banks are offering 17% interest rate : BAAC and GSB 

Edited May 12, 2023 by Goodboybkk

[Goodboybkk]

It is a joke.

 

https://www.moneyexpo.net/MoneyExpo2023/Bangkok2023/Promotion/BAAC#a2

 

It is a deposit with 16% p.a. for only 16 days.

What a silly deposit advertisement! 

Edited May 12, 2023 by Goodboybkk

[orchis]

57 minutes ago, Goodboybkk said:

Yes, I am sure.

you may want to read that again.

[asf6]

The bank has a press release on its website that mentions a 16.99% interest rate but when you look through the accounts they offer, there is nothing like that for interest rates.  

https://www.gsb.or.th/news/gsbpr19-66/

[asf6]

12 minutes ago, Goodboybkk said:

It is a joke.

 

https://www.moneyexpo.net/MoneyExpo2023/Bangkok2023/Promotion/BAAC#a2

 

It is a deposit with 16% p.a. for only 16 days.

What a silly deposit advertisement! 

Thanks. So a very high headline making interest rate for 16 days, a decent return for 38 days and an average return for 104 days - giving a return of 3.50% for a year. Still, 3.5% for a year is OK, but I'd much prefer the 17%!  

 

 

[NoDisplayName]

1 hour ago, asf6 said:

Thanks. So a very high headline making interest rate for 16 days, a decent return for 38 days and an average return for 104 days - giving a return of 3.50% for a year. Still, 3.5% for a year is OK, but I'd much prefer the 17%!  

 

 

Are you sure you're getting 3.5% for the year?  I'd assume that's the average over the first five months.

Quote

Exclusive 58
Deposit money within the event to receive 2 benefits.

Deposit a minimum savings account of 50,000 baht, a maximum of 500,000 baht/person, and maintain the deposit balance for 158 days.
    Average return 3.50% p.a.
    Earn 1,000 K-Rewands Points
    Day 1-104 : Receive 1.58% p.a. (104 days)
    Day 105-142 : Receive 3.58% p.a. (38 days)
    Day 143-158 : Get 15.80% p.a. (16 days)

I'd bet that on day 159, your balance rolls over to 0.5% for the remainder.

Edited May 12, 2023 by NoDisplayName

[BenStark]

In the civilized world it would be prohibited for banks to publish the fake promotions they post

 

I have a Mee Tae Dai account with Krungsri, and you get 0.90% up to 2 million. Over 2 million the intertest goes down to 0.50%

 

Nothing to worry you would think, but here is the snake in the grass.

 

If you have 2000.001 baht in your account, the 0.50% is not only on the amount above 2 million, but on the whole amount.

 

I found out the hard way, because 2 years ago the limit was 5 million, and the branch manager encouraged me to deposit more, because over 5 million I would be a privileged client, which included a sugary cake on my birthday, and free use of airport lodge, among a few more useless benefits.

 

What she forgot to tell me is that interest on the whole 5 million would be lower, so in fact, the privilege cost me money.

 

https://www.krungsri.com/Krungsri2020/media/Banking-Rate/deposit-rates/en/deposit-rates-01052023-en.pdf

Edited May 12, 2023 by BenStark

[asf6]

31 minutes ago, NoDisplayName said:

Are you sure you're getting 3.5% for the year? 

Yes. I've done the maths. On a deposit of 100,000 baht you would get interest of 3501 baht. 

[BenStark]

1 minute ago, asf6 said:

Yes. I've done the maths. On a deposit of 100,000 baht you would get interest of 3501 baht. 

Without a work permit you get ZERO at GSB.

[NoDisplayName]

13 minutes ago, asf6 said:

Yes. I've done the maths. On a deposit of 100,000 baht you would get interest of 3501 baht. 

Right.  Do the math.  You do get an average rate of 3.50% per annum, but only over the 158 days as specified in the advertisement.  At day 158 you have a total of 1515 baht in interest accumulated, at 3.5% pa over the five-month period.

 

But what happens at day 159?  Your interest rate will drop from 15.8%, but to what?  Unless the bank gives you 3.50% interest for the remaining 7 months of the year, you won't be getting that 3501 baht interest.

 

Must be a reason the bank doesn't tell you what the rate drops to for the other 207 days of the year.  I'm betting on a rollover to 0.50% per annum, giving you an additional 283 baht interest for 7 months.

 

[asf6]

58 minutes ago, NoDisplayName said:

Are you sure you're getting 3.5% for the year?  I'd assume that's the average over the first five months.

I'd bet that on day 159, your balance rolls over to 0.5% for the remainder.

For the 158 days, you would earn 1,515 baht interest on 100,000 baht. However, 158 days is only 43.28% of a year, you need to multiply 1515 by 2.31, which gives you 3500 baht, which is 3.5% 

[asf6]

2 minutes ago, NoDisplayName said:

Right.  Do the math.  You do get an average rate of 3.50% per annum, but only over the 158 days as specified in the advertisement.  At day 158 you have a total of 1515 baht in interest accumulated, at 3.5% pa over the five-month period.

 

But what happens at day 159?  Your interest rate will drop from 15.8%, but to what?  Unless the bank gives you 3.50% interest for the remaining 7 months of the year, you won't be getting that 3501 baht interest.

 

Must be a reason the bank doesn't tell you what the rate drops to for the other 207 days of the year.  I'm betting on a rollover to 0.50% per annum, giving you an additional 283 baht interest for 7 months.

 

You are doing it the wrong way around.

Work out the interest for a year at an interest rate then divide the number of days by 365. That will give you the interest on that rate for that number of days. Do that for each rate. That will give you the total interest for 158 days. Then you multiply it by 2,31 to get an equivalent rate for the year. 

[Mac Mickmanus]

33 minutes ago, BenStark said:

In the civilized world it would be prohibited for banks to publish the fake promotions they post

 

 

Its not a fake promotion though and U.K banks have similar promotions , offering high interest rates , but certain restrictions written in the small print 

[NoDisplayName]

5 minutes ago, asf6 said:

For the 158 days, you would earn 1,515 baht interest on 100,000 baht. However, 158 days is only 43.28% of a year, you need to multiply 1515 by 2.31, which gives you 3500 baht, which is 3.5% 

This is a 5-month promotion.

You are guaranteed a specified interest rate over 158 days.

The interest rate after the 158 days is unknown.

Your 2.31 conversion does not apply.

[asf6]

17 minutes ago, NoDisplayName said:

This is a 5-month promotion.

You are guaranteed a specified interest rate over 158 days.

The interest rate after the 158 days is unknown.

Your 2.31 conversion does not apply.

You are correct that it is a promotion for only 158 days but the three different interest rates given by the bank are actually annual interest rates, and therefore the 3.5% rate is the average return for a year. Over the 158 days, you would earn the equivalent of 1.515% of your deposit. 

 

 

.

Edited May 12, 2023 by asf6

[KhunLA]

Beyond you oops fund, just spend your money, as it's worth less tomorrow than today or yesterday.  No bank interest rate will keep up with inflation.

[jphasia]

9 hours ago, BenStark said:

In the civilized world it would be prohibited for banks to publish the fake promotions they post

 

I have a Mee Tae Dai account with Krungsri, and you get 0.90% up to 2 million. Over 2 million the intertest goes down to 0.50%

 

Nothing to worry you would think, but here is the snake in the grass.

 

If you have 2000.001 baht in your account, the 0.50% is not only on the amount above 2 million, but on the whole amount.

 

I found out the hard way, because 2 years ago the limit was 5 million, and the branch manager encouraged me to deposit more, because over 5 million I would be a privileged client, which included a sugary cake on my birthday, and free use of airport lodge, among a few more useless benefits.

 

What she forgot to tell me is that interest on the whole 5 million would be lower, so in fact, the privilege cost me money.

 

https://www.krungsri.com/Krungsri2020/media/Banking-Rate/deposit-rates/en/deposit-rates-01052023-en.pdf

This is interesting. I also have a MTD account and notice that.

However, what would you advise if you have more that 2M to store in the bank?

At the moment, I have more than 2M in my MTD account. Same as you, the bank manager advise me to reach 5M to get the privilege....but yes, I don't see the interest of that too.

I have several account in Thailand in different banks. So I thinking to move the over 2M to Bangkok bank, SCB...but the interest will be still less than 0.9%.

Just to be clear, I am not arguing here. I am only not very good at where to store my extra cash, so I am open to advises.

I was in Krungsri bank last week and asked them advises. Fixed deposit...but they only told me that MTD is the best interest so far?

[BenStark]

32 minutes ago, jphasia said:

This is interesting. I also have a MTD account and notice that.

However, what would you advise if you have more that 2M to store in the bank?

At the moment, I have more than 2M in my MTD account. Same as you, the bank manager advise me to reach 5M to get the privilege....but yes, I don't see the interest of that too.

I have several account in Thailand in different banks. So I thinking to move the over 2M to Bangkok bank, SCB...but the interest will be still less than 0.9%.

Just to be clear, I am not arguing here. I am only not very good at where to store my extra cash, so I am open to advises.

I was in Krungsri bank last week and asked them advises. Fixed deposit...but they only told me that MTD is the best interest so far?

Yes you will get only 0.5% on the total amount in your MTD account.

 

I have moved funds to TTB bank No Fixed account. 1.10%  minimum 2 million, maximum 30 million. paid monthly

 

SCB Jad tem 1.25% maximum 3 million -  EZ savings 1.5% up to 1 million

 

LH Bank Pro fit account 1.5% up to 3 million (You may have to engage headoffice to get an account as foreigner)

 

UOB Stash account 1.25% up to 10 million. paid monthly

 

All interest rates are available on the web and I think they will increase next month.

 

Krungsri MTD account, once the most favourable, is now the worst one

Edited May 13, 2023 by BenStark
corrected SCB rates - Corrected Krungthai to Krungsri

[Sophon]

5 minutes ago, BenStark said:

Yes you will get only 0.5% on the total amount in your MTD account.

 

I have moved funds to Thai Military No Fixed account. 1.10%  minimum 2 million, maximum 30 million.

 

SCB Jad tem 1.25% maximum 3 million -  EZ savings 1.5% up to 1 million

 

LH Bank Pro fit account 1.5% up to 3 million (You may have to engage headoffice to get an account as foreigner)

 

UOB Stash account 1.25% up to 10 million

 

All interest rates are available on the web and I think they will increase next month.

 

Krungthai MTD account, once the most favourable, is now the worst one

That should be "Krungsri MTD account", not Krungthai.

[jphasia]

16 minutes ago, BenStark said:

Yes you will get only 0.5% on the total amount in your MTD account.

 

I have moved funds to TTB bank No Fixed account. 1.10%  minimum 2 million, maximum 30 million. paid monthly

 

SCB Jad tem 1.25% maximum 3 million -  EZ savings 1.5% up to 1 million

 

LH Bank Pro fit account 1.5% up to 3 million (You may have to engage headoffice to get an account as foreigner)

 

UOB Stash account 1.25% up to 10 million. paid monthly

 

All interest rates are available on the web and I think they will increase next month.

 

Krungsri MTD account, once the most favourable, is now the worst one

Thanks for that. I will see first with SCB to drop 1 million at 1.5% as I have a saving account with them.

[jphasia]

7 hours ago, KhunLA said:

Beyond you oops fund, just spend your money, as it's worth less tomorrow than today or yesterday.  No bank interest rate will keep up with inflation.

Yes but spend on what? Real estates? Gold? I am really bad on investment. 

[moogradod]

10 hours ago, BenStark said:

Without a work permit you get ZERO at GSB.

But my Thai wife, who has an account with GSB would get it. They do not inform you by themselves. I would expect this as part of customer support. Look into LH Bank as well. I think I remember she got 1.85% for one year fixed (not sure though, but asking does not cost anything (but maybe the requirement includes a Thai Wife who has the account)

Edited May 13, 2023 by moogradod

[NoDisplayName]

9 hours ago, asf6 said:

You are correct that it is a promotion for only 158 days but the three different interest rates given by the bank are actually annual interest rates, and therefore the 3.5% rate is the average return for a year. Over the 158 days, you would earn the equivalent of 1.515% of your deposit. 

 

 

.

YES!  Ezzackly..........almost.

 

Over the 158 days you get a "per annum" rate of 3.5%.  That means you get the annualized rate prorated over a specified promotion period, which in this case is 158 days.  You do NOT get that rate for one full year.   That's why the ads say you get 3.5% "per annum"  and NOT that you get 3.5% interest.

 

When you buy a 6-month CD, you get a per annum rate.  If the per annum rate is 4%, then at six months you get 2% in interest deposited into your account.  After the 6 month period, if you don't withdraw your funds, the CD will often reset with a lower NON-promotional (lower!) interest rate.

 

In this case, you get the per annum rate over 158 days.  Have you considered why the bank doesn't specify what happens at day 159 when the promotion ends?

 

You have been confused by bank terminology into mistakenly believing you'll get the special rate for at least a full year.  That's why they do it that way.

[WilliamSmits]

Vitai Ratanakorn, president and chief executive of GSB, said the bank launched a special deposit product for a period of 111 days using a step-up interest rate, with the highest rate rising to 16.99%..

then:

..On average, the interest rate for this campaign will equal a fixed deposit rate of 4.23% per year.

[NoDisplayName]

1 minute ago, NoDisplayName said:

That's why the ads say you get 3.5% "per annum"  and NOT that you get 3.5% interest.

Lemme try to make it clearer.  Consider these two offers:

 

Quote

 

1.  Earn 3.5% interest on a minimum 100,000 deposit held for 158 days.

 

2.  Earn 3.5% per annum interest on deposits held for 158 days on a minimum 100,000 deposit.

 

The first offer will give you 3500 baht in interest after 158 days.

 

The second offer will give you 1515 baht in interest, equal to 5 months worth of 3.5% interest.

[marin]

Anyone else notice the OP likes to start these goofy threads then never post again. Must have four or five at least now.

[asf6]

16 minutes ago, NoDisplayName said:

YES!  Ezzackly..........almost.

 

Over the 158 days you get a "per annum" rate of 3.5%.  That means you get the annualized rate prorated over a specified promotion period, which in this case is 158 days.  You do NOT get that rate for one full year.   That's why the ads say you get 3.5% "per annum"  and NOT that you get 3.5% interest.

 

When you buy a 6-month CD, you get a per annum rate.  If the per annum rate is 4%, then at six months you get 2% in interest deposited into your account.  After the 6 month period, if you don't withdraw your funds, the CD will often reset with a lower NON-promotional (lower!) interest rate.

 

In this case, you get the per annum rate over 158 days.  Have you considered why the bank doesn't specify what happens at day 159 when the promotion ends?

 

You have been confused by bank terminology into mistakenly believing you'll get the special rate for at least a full year.  That's why they do it that way.

I haven't been confused by anything. We both agree on the figures but you are just confused by what you think I think. My earlier posts made it clear (to me at least) that when I was talking about the interest for a year I was talking about equivalent rate for the year. Obviously the promotion is only for 158 days. 

[KhunLA]

24 minutes ago, jphasia said:

Yes but spend on what? Real estates? Gold? I am really bad on investment. 

Since my oops fund is full up, I spend it on my smile, or daughter's (24 yrs old), though she doesn't need any help.   Just bought a damn ฿6M condo, damn HiSo Bi-atch.  She's paying for lunch next time.

 

If investing, the stock market was always kind to me, unless you can do RE, here or home country.  If bad on investments, then keep stuffing the pillow.  Better to have no gains, instead of any losses.

 

Good Luck