Jump to content

Why are UK expats still doing the 800K deposit for retirement extensions ?


Recommended Posts

I pose this question guys cos i'm seeing UK bank deposit interest rates up to as much as 7% when the interest here in Thailand is no more than 2% so i believe. It does'nt make any financial sense to me other than if you don't have 65K monthly income.

Now i appreciate if you don't have the 800K or the 65K monthly income you're f***** and have to use an agent or a helpful IO

Any thoughts/comments guys ?聽

  • Confused 11
  • Sad 2
Link to comment
Share on other sites

I get .9% with Krungsri here and 4.84% in the UK. But not worth the hassle of moving over to the income method for a year or so. You can drop down to 400k for 7 months anyway.

Plus i only did my extension a couple of months ago. I am not sure of the rules, can you switch to an income method mid year or do you have to wait until the next extension is due?

Edited by Henryford
  • Like 1
  • Thumbs Up 1
Link to comment
Share on other sites

6 minutes ago, DrJack54 said:

Another bonus of using agent or income method is that 800k not locked in a bank and difficult for Thai partner to access

Why would a partner have access to this money??? Mine never did, it worked out ok!

  • Like 1
  • Sad 2
  • Thumbs Up 1
Link to comment
Share on other sites

5 minutes ago, 2baht said:

Cost of extension, true or not?

Welcome to ignore.

Will let someone else try and educate you.聽

Try Google "opportunity cost"聽

It's economics 101.聽

Edit: I did it for you...

"op路por路tu路ni路ty cost

nounECONOMICS

the loss of potential gain from other alternatives when one alternative is chosen.

"idle cash balances represent an opportunity cost in terms of lost interest"

Edited by DrJack54
  • Like 1
  • Confused 1
  • Sad 4
  • Thumbs Up 1
Link to comment
Share on other sites

1 minute ago, jerrymahoney said:

Thanks. I myself use the 65K per month option but I just tried to keep things simple.

May I ask.

Does your embassy provide "income letter"聽

I'm from Oz and embassy does not provide letter.

Next week doing extension money in bank method.

At same time will start 100k transfers.

Maintain the funds in bank for the next 12 months along with transfer every month.

Then will try switch to using income method for extension in 2024.聽

  • Thumbs Up 1
Link to comment
Share on other sites

THB800,000 divide by say 44 baht to the pound = 18,180 pounds earning interest in a UK bank at say 7% = GBP1,272 (THB56,000) yearly compared to using an agent say 12,500 baht yearly, gives a saving of approx THB43,500 annually.

Now which one would you choose?

  • Like 1
  • Thumbs Up 1
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.






  • Create New...