Thailand banks have the worst interest rates

[topt]

3 hours ago, Foxx said:

And given that exchange rates frequently swing by 30% in a year, one's avoiding the risk of losing a substantial part of one's wealth.

Since we are really talking "western" currencies here which one has changed 30% a year "frequently" in the last 10 years........

[The Theory]

22 hours ago, Tropicalevo said:

I went to put some money into long term savings accounts a while back and I just did not understand the logic.

They don't want to become an "investment spot" for large funds. 
what they pay is just a thank you for your money, nothing else. 

[NoshowJones]

22 hours ago, scubascuba3 said:

Krungsri still 0.9% which is Pitiful, in UK Santander now has an instant access 5.2% account, why would anyone leave surplus cash in Thailand

Just another reason why I only keep enough money in my Thai bank account for my living expenses. It used to be that people were robbing banks, now it is the other way around. Extra charges for  taking your own money out in another province, charging 230Bt for taking money from an ATM using a foreign debit card etc.

[spidermike007]

13 hours ago, bignok said:

In your wifes name is not a good idea.

Disagree. We have been together for a long time. And I want her to have the house and my money when I am gone. All good. It was my decision. Keeps things simple, as long as you have a woman you trust and have been with for ages. 

[scubascuba3]

4 hours ago, Foxx said:

The GBP interest rate may be higher, but that suggests that the value of Sterling is likely to fall relative to the baht.  You may get a few more coins in interest in Sterling, but against the baht you'll probably lose capital value.

 

Not really that simple, interest rates have been going up for years and GBP relatively strong against THB

[scubascuba3]

3 hours ago, Phulublub said:

Reading the small print on this, "after 12 months the account 'matures' and your money's transferred to an account with a much lower interest rate".  So not all that Golden. 

 

Major UK banks offer up to 1%.  Huge difference there!!

 

PH

 

 

Kinda normal, at maturity look for another good deal

[TigerandDog]

3 hours ago, bob smith said:

absolute rubbish!

 

paying your home loan off early does not incur bad credit.

 

sounds like an excuse the bank made, maybe because they didn't like your friend.

either that or you are getting mixed up with mortgages and personal iphone loans..

no mix up. The loan paid off early was a mortgage. The loan that wasn't approved was for a car loan, and yes it could have been an excuse because the bank didn't like him, as he is an arrogant, narcissist.

[Don Chance]

Wait till your money disappears from some crooked teller.

[Baht Simpson]

3 hours ago, spidermike007 said:

Disagree. We have been together for a long time. And I want her to have the house and my money when I am gone. All good. It was my decision. Keeps things simple, as long as you have a woman you trust and have been with for ages. 

That's what I do with my partner.  It's a warm arrangement.

[Baht Simpson]

1 hour ago, Don Chance said:

Wait till your money disappears from some crooked teller.

Pretty safe with a fixed deposit.

[Baht Simpson]

2 hours ago, scubascuba3 said:

Kinda normal, at maturity look for another good deal

Yeah, most maturities are transferred to a holding account. Normal practice and they tell you upfront. In most cases they'll get an instruction before maturity for reinvestment etc.

[StayinThailand2much]

On 9/6/2023 at 12:05 PM, scubascuba3 said:

Krungsri still 0.9% which is Pitiful, in UK Santander now has an instant access 5.2% account, why would anyone leave surplus cash in Thailand

I get 0% at Krung Thai Bank, probably above mentioned rate for savings in my other Thai bank accounts. Just one reason why I don't keep much money in those savings accounts.

[StayinThailand2much]

22 hours ago, xtrnuno41 said:

I wonder what would happen if all people take out there cash from banks and just put it at home (...)

It would be like 90 years ago. That was the Great Depression.

[khunPer]

On 9/6/2023 at 7:05 AM, scubascuba3 said:

...why would anyone leave surplus cash in Thailand

"Thailand banks have the worst interest rates" – no, not at all. You haven't checked the Danish bank rates; so yes, indeed "leave surplus cash in Thailand"...

[GarryP]

On 9/6/2023 at 1:21 PM, scubascuba3 said:

Many still have the ability to move money in UK and other countries

I've lived and worked here for 40 years. I have no bank accounts in any other countries. In many years past, the interest rates on savings accounts here were quite good. Unfortunately, back then I wasn't earning enough to save much so did not really benefit. By the time I was able to start putting money away the interests rates had dropped considerably. Transferring money overseas was not reallly on my radar at that time. 

[LarryLEB]

On 9/6/2023 at 2:32 PM, bob smith said:

best thing to do here to avoid overpaying on a loan is to beat the bank.

 

Take out a loan on a house for 30/40 years for example and pay it off in 10. Then then banks dont get their hand in your pocket as much.

Agreed.  On my last mortgage, I also had payments made WEEKLY to further reduce the interest.  (Just dividing your monthly payment by 4 and paying weekly.)

[Stevemercer]

On 9/6/2023 at 12:14 PM, bob smith said:

There is a systemic attitude in Thailand that the banks arent there to 'help' people but that they are a business, and like any other business they love to make as much money as possible. Banks seem to think that people should be grateful that they are allowed to keep their money in their vaults in exchange for snazzy apps and promptpay. There is an air of arrogance and passive aggressiveness in most Thai banks, which I have personally been on the receiving end of.

Western banks were like this in the 1970s, but were forced to become more customer orientated when Governments started to allow competition from building societies etc. Thai banks are still pretty much protected from new start-ups/competition by Government regulations.

[Paris333]

When we change States the risk of currency devaluation is always visible. At the present time the European Union and America have huge debts which cannot be repaid.Therefore, on the one hand we have discovered corona where trade has stopped and on the other hand the governments are giving food coupons to citizens . As a result, because we have a lot of money in circulation, the prices of all items have increased. Increasing fake GDP by increasing prices within the States it reduces the States' Debt while the States collect increased VAT sales taxes.....according to Maastrcht Treaty of E.U where overall government debt should not exceed 60% of GDP.You got it colpo grosso of Mckey Mause economy? Source:https://en.wikipedia.org/wiki/Maastricht_Treaty......

Source:https://www.usdebtclock.org/

 

[mania]

On 9/5/2023 at 7:05 PM, scubascuba3 said:

Krungsri still 0.9% which is Pitiful, in UK Santander now has an instant access 5.2% account, why would anyone leave surplus cash in Thailand

It comes & goes depending on many things.

It was awhile back but I remember when it was the opposite

So you just need to keep your bulk where you get the best rates

 

I was getting 0.25% in the USA but in Thailand at Bank of Ayudhya (Krungsri) I was getting 4%

in their Mee Tae Dai savings. Was very nice as I was making one months living expenses per year in interest off that account....Ah the good old days ????

[Lorry]

16 hours ago, ExpatOilWorker said:

You are correct and there is a domestic banking monopoly in Thailand. Only one foreign bank have a retail banking license in Thailand and that is UOB.

Banks in Thailand all agree to a huge deposit to out loan spread, even UOB.

CIMB?

[Lorry]

As others have said:

If the interest rate for THB is lower than for western currencies the market expects  that the Baht will appreciate against western currencies.

BTW the baht has appreciated against all major currencies for the last 25 years (but better don't talk about events 26 years ago).

The Financial Times had a piece about "the world's most resilient currency" not long ago 

[ExpatOilWorker]

1 hour ago, Lorry said:

CIMB?

Good point. Maybe there are two after all or maybe CIMB Thailand is registered domestically similarly to Citi Bank use to be. I am not sure, but well spotted.

[scubascuba3]

2 hours ago, Lorry said:

If the interest rate for THB is lower than for western currencies the market expects  that the Baht will appreciate against western currencies.

No it doesn't, BoT has a lower interest rate of 2.25% where the banks haven't tried to pass on. GBP exchange rate has held up well against THB for a while now even with interest rates going up to 5.25%

[Foxx]

4 hours ago, scubascuba3 said:

GBP exchange rate has held up well against THB for a while now even with interest rates going up to 5.25%

Really? Back in August it was 45.28.  Now it's 44.08 - a fall of 2.7%.  I wouldn't call that "held up well".  (Source:  xe.com)

[foreverlomsak]

On 9/7/2023 at 9:21 AM, bob smith said:

paying your home loan off early does not incur bad credit.

it would to an accountant example

project expected to make a profit of 10MB pa over 10 years = 100MB

actually returns a profit of 5mb over 5 years = 25MB

accountant would say the project did not make a profit it actually made a loss of 75MB, as that was the value he forward sold to make even more profit on other projects.

[foreverlomsak]

1 hour ago, Foxx said:

Really? Back in August it was 45.28.  Now it's 44.08 - a fall of 2.7%.  I wouldn't call that "held up well".  (Source:  xe.com)

taking a longer view August 2019 it was under 37 THB/GBP that's done a little better that "held up well" (Source: Wise.com) 

[scubascuba3]

4 hours ago, Foxx said:

Really? Back in August it was 45.28.  Now it's 44.08 - a fall of 2.7%.  I wouldn't call that "held up well".  (Source:  xe.com)

Big move since forming the govt, many currencies moved in a similar way. Your 44.08 is wrong 

[Blablaat]

On 9/7/2023 at 2:42 PM, StayinThailand2much said:

I get 0% at Krung Thai Bank, probably above mentioned rate for savings in my other Thai bank accounts. Just one reason why I don't keep much money in those savings accounts.

Krung Thai gives foreigners 0% while Thais get 1.5% for the same product. Is that even legal? Discrimination for sure. Nothing new for Thailand.

[observer90210]

Economists usually argue on savings interest rates. Some claim that higher interest rates stimulate the economy, boost the domestic currrency value on markets through investment...

 

Others argue that higher interest rates refrain consumers from spending and encourage them rather to save. Saving that obviously does not make capital move and be passed around.

[StayinThailand2much]

28 minutes ago, Blablaat said:

Krung Thai gives foreigners 0% while Thais get 1.5% for the same product. Is that even legal? Discrimination for sure. Nothing new for Thailand.

 

Back when I opened it, the clerk told me: "No interest for you as a foreigner." - As I needed an account with KTB back then, I reluctantly agreed. Just another discrimination of foreigners in Thailand. Then again, they didn't get a happy customer, and I have only kept the minimum balance in that account most of the time, so a small loss for me, but a much bigger loss for them...