tax free time deposit account for Immigration requirements

[henry2109]

I want to put my 800.000 baht deposit required for my retirement visa into a tax free time deposit account for 24 month, with Krungsri Bank, presently yielding 2.75 %.

 

Will this kind of deposit be approved by Pattaya Immigration for my next visa, or is it a problem? thanks.

[Lite Beer]

Many people put there 800k/400k in fixed deposit accounts with no problem.

As long as you have immediate access to the funds.

[4MyEgo]

1 hour ago, henry2109 said:

into a tax free time deposit account for 24 month

Tax free, I don't think so, as I just did a calculation on their website and that means the bank pays the tax on the interest you earned taking out of the money your earned.

 

I don't know where you obtained the rate of 2.75% for the 2 years, but if they were paying that, it would go like this, e.g. 6,600 baht on your 800,000 x 2.75% = 22,000 baht per year x 2 years = 44,000, take away the tax of 6,600 and your left with 37,400 baht net to you. 

 

The real rate would therefore be 2.35%. I don't know how that stacks up to other banks, but perhaps others here who have term deposits can further explain what they are achieving and if the tax is taken out upon maturity.

 

It's still better than a kick in the teeth, might do one myself, however I can only see Kasikorn Bank offering 2% for that amount of baht.

 

 

 

Edited September 16, 2023 by 4MyEgo

[Sophon]

28 minutes ago, Lite Beer said:

Many people put there 800k/400k in fixed deposit accounts with no problem.

As long as you have immediate access to the funds.

Yes, but the OP is not talking about a standard fixed deposit account, which would not be tax free. The tax free time deposit account he is talking about is one of the savings deposit type accounts, where you have to deposit the same amount every month for the term of the account.

 

From Krungsri's website:

Quote

Tax-free deposit account for individual account holder

How to apply?

Simply open a 24-month or 36-month tax-free time deposit account with a minimum of THB 500 to a maximum of THB 25,000 (for 24-month tax-free time deposit) or a maximum of THB 16,000 (for 36-month tax-free time deposit). The same amount is to be deposited to the account on a monthly basis for 24 or 36 months (as per the account type). The Bank allows only 2 failures to make the required monthly deposits throughout the deposit period.

Benefit

• Upon 24 months of consecutive deposits, the account holder is entitled to the 24-month time deposit interest, plus a special interest of 0.8%
• Upon 36 months of consecutive deposits, the account holder is entitled to the 36-month time deposit interest, plus a special interest of 0.5%

Account holder can enjoy a lump sum of savings for a better secure future.

So this account cannot be used to deposit the OP's 800k, since the maximum allowed deposit per month is THB 25,000.

 

[Sophon]

I forgot to say that the OP can deposit his money into a standard 24 month fixed deposit with Krungsri, which pays 1.95% p.a. Of course, that would not be tax free, so 15% tax would be deducted, but the tax could be reclaimed from the Revenue Department (if he has no other significant income).

[NoDisplayName]

1 hour ago, henry2109 said:

time deposit account for 24 month

NO.

 

Immigration requires you have immediate access to your funds if needed.

Standard fixed deposit account can be withdrawn at any time losing only the pending interest.

[4MyEgo]

1 minute ago, NoDisplayName said:

NO.

 

Immigration requires you have immediate access to your funds if needed.

Standard fixed deposit account can be withdrawn at any time losing only the pending interest.

What if you have one account with the fixed 800,000 baht with one bank earning interest and another account with say an equal amount accessible daily ?

[BritTim]

1 hour ago, 4MyEgo said:

What if you have one account with the fixed 800,000 baht with one bank earning interest and another account with say an equal amount accessible daily ?

I am unsure if I am understanding your question correctly. You need the money in a qualifying account: one where you can always withdraw the money on demand with only loss of interest. Money in a bank account that does not qualify is not considered.

[4MyEgo]

35 minutes ago, BritTim said:

I am unsure if I am understanding your question correctly. You need the money in a qualifying account: one where you can always withdraw the money on demand with only loss of interest. Money in a bank account that does not qualify is not considered.

What I was referring to is a fixed term deposit with 800,000 baht in it that is not accessible until the 12 month term has matured, therefore rendering one the say 2% interest less tax upon maturity.

 

The above said, also having an account with another bank for day to day living expenses, accessible everyday of an equal or close enough amount.

 

The term deposit would be to earn the interest whilst the other earns basically nothing because it's not a term deposit, it's an everyday account earning a pittance, whilst you use it for your daily living expenses. 

 

 

Edited September 16, 2023 by 4MyEgo

[Sophon]

28 minutes ago, 4MyEgo said:

What I was referring to is a fixed term deposit with 800,000 baht in it that is not accessible until the 12 month term has matured, therefore rendering one the say 2% interest less tax upon maturity.

 

The above said, also having an account with another bank for day to day living expenses, accessible everyday of an equal or close enough amount.

 

The term deposit would be to earn the interest whilst the other earns basically nothing because it's not a term deposit, it's an everyday account earning a pittance, whilst you use it for your daily living expenses. 

 

 

If the fixed term account is not immediately accessible, then it won't count at all in Immigration matters. So whether you will be granted the extension will depend entirely on if your "day to day living expenses" account comply with the 800k/400k requirements.

[FlorC]

Immigration wants an update of your bankbook/account the day you go for your extention. How can you do that with a fixed account ?

I want to do the same as the OP , because I tired of 0,9 % on my 800k.

[topt]

10 minutes ago, FlorC said:

Immigration wants an update of your bankbook/account the day you go for your extention. How can you do that with a fixed account ?

I want to do the same as the OP , because I tired of 0,9 % on my 800k.

L&H fixed account I never used to bother. No problem with Jomtien Immigration.

Last couple of years they have suggested I make a deposit of 1k which they add to it........

 

Along with the fact that you can withdraw the money at any time (with loss of interest) make "fixed" accounts here very different to what we may have been used to in our home countries.

[4MyEgo]

34 minutes ago, FlorC said:

Immigration wants an update of your bankbook/account the day you go for your extention. How can you do that with a fixed account ?

I want to do the same as the OP , because I tired of 0,9 % on my 800k.

I would have thought by providing them both, e.g. so they could see that you transferred 800,000 from your account to the fixed account and had a good balance in the everyday one which is accessible is enough.

 

The above said, I will just transfer 800,000 out of my account and put it in a fixed term account for 12 months and earn the interest, immigration can see my other account with the 800,000 in it and use that one for their purposes.

 

It's just stupid in my opinion, because all fixed term accounts are accessible, you just lose the interest if you pull the money out before maturity.

 

[Sophon]

12 minutes ago, 4MyEgo said:

I would have thought by providing them both, e.g. so they could see that you transferred 800,000 from your account to the fixed account and had a good balance in the everyday one which is accessible is enough.

 

The above said, I will just transfer 800,000 out of my account and put it in a fixed term account for 12 months and earn the interest, immigration can see my other account with the 800,000 in it and use that one for their purposes.

 

It's just stupid in my opinion, because all fixed term accounts are accessible, you just lose the interest if you pull the money out before maturity.

 

You seem confused, now you are talking about a fixed term account, which as you mention is immediately accessible. But in your previous post you were asking about having the funds in an account that is not accessible. 

[SpaceKadet]

51 minutes ago, FlorC said:

Immigration wants an update of your bankbook/account the day you go for your extention. How can you do that with a fixed account ?

I want to do the same as the OP , because I tired of 0,9 % on my 800k.

You can always update your fixed account bankbook. It just shows as "Bring Forward" transaction. I always updated the book on the day I went for extension. They never asked me to deposit or withdraw. Maybe the rule is different for fixed account. IO seems to prefer fixed account to the standard deposit. 

[NoDisplayName]

3 hours ago, 4MyEgo said:

I would have thought by providing them both, e.g. so they could see that you transferred 800,000 from your account to the fixed account and had a good balance in the everyday one which is accessible is enough.

 

The above said, I will just transfer 800,000 out of my account and put it in a fixed term account for 12 months and earn the interest, immigration can see my other account with the 800,000 in it and use that one for their purposes.

 

It's just stupid in my opinion, because all fixed term accounts are accessible, you just lose the interest if you pull the money out before maturity.

 

Probably not going to fly.  You'll have to carefully maintain the 800K/400K immigration required balance in your regular passbook savings account.  Go 1 baht under for an hour and you're going to have to start all over with a new visa (or use agent).

 

And then you've got your other 800K(?) tied up in a 2.75% 2-year fixed account, when that money could be overseas earning 10%.  Why?

[BritTim]

5 hours ago, 4MyEgo said:

What I was referring to is a fixed term deposit with 800,000 baht in it that is not accessible until the 12 month term has matured, therefore rendering one the say 2% interest less tax upon maturity.

 

That does not appear to be a qualifying account. Under all normal circumstances, your application will proceed exactly as if that account did not exist.

[FlorC]

23 hours ago, SpaceKadet said:

You can always update your fixed account bankbook. It just shows as "Bring Forward" transaction. I always updated the book on the day I went for extension. They never asked me to deposit or withdraw. Maybe the rule is different for fixed account. IO seems to prefer fixed account to the standard deposit. 

Mine want a deposit or withdraw , not just an update or like you get after the monthly interest.

 

20 hours ago, NoDisplayName said:

Probably not going to fly.  You'll have to carefully maintain the 800K/400K immigration required balance in your regular passbook savings account.  Go 1 baht under for an hour and you're going to have to start all over with a new visa (or use agent).

 

And then you've got your other 800K(?) tied up in a 2.75% 2-year fixed account, when that money could be overseas earning 10%.  Why?

10 % ?? In russian ruble ? Argentine peso ? turkish lira ?

Where do you get 10 % ?

[NoDisplayName]

2 hours ago, FlorC said:

Mine want a deposit or withdraw , not just an update or like you get after the monthly interest.

 

10 % ?? In russian ruble ? Argentine peso ? turkish lira ?

Where do you get 10 % ?

Bangkok Bank can do a "balance forward" in your passbook with no transaction required.  Some other banks do required a deposit or withdrawal.

 

Your interest rate depends on the investment.  High yield bond ETF's pay around 7%, buy/write ETF's around 10-12% with monthly payout.  US govt I-series savings bonds were paying 9% earlier this year, now set at about 4.5%.

[KannikaP]

On 9/16/2023 at 12:03 PM, NoDisplayName said:

Standard fixed deposit account can be withdrawn at any time losing only the pending interest.

Except at weekends and bank holidays.

[retarius]

There is a 15% withholding tax on interests on all bank deposits. You can claim it back if you are under the threshold. 

 

I have been told repeatedly when I arrived and discussed this with the I/O and also by Ubon Joe (RIP) who was the authority on this forum, that it has to be an ordinary savings (passbook) account which pays next to nothing.

 

Anyway I have always had my money in there out of habit. But I haven't checked recently and your question made me realise that things might have changed. They did change the rules a couple or more years back when they demanded you kept your money in for longer than the 3 months seasoning. maybe this changed at the same time

 

Another reason may be that it is something the local office decides, in which case you may be okay, but I might still not be able to do it as my office is kind of strict.

Edited September 17, 2023 by retarius