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

[Pumpuynarak]

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 ? 

[Captain Monday]

Is it worth the hassle and uncertainty of maintaining the monthly transfers? How much income tax would you pay HMRC for the interest earned in year on 800k baht Pounds sterling equivalent?

Edited September 25, 2023 by Captain Monday

[ezzra]

The only other way would to pay a local agent the 12,000 or so baht to do your yearly retirement renewal while keeping your money in the UK bank earning much more than the agent fees...

[2baht]

Surely, at retirement age, after a lifetimes work, 800,000 Baht should'nt be to hard to come up with! ????

[quake]

Way more easy, come extension time.

for now anyway. 

[DrJack54]

6 minutes ago, 2baht said:

Surely, at retirement age, after a lifetimes work, 800,000 Baht should'nt be to hard to come up with! ????

That's not the point that the OP referring to.

It's the opportunity cost of having the 800k earning very little in Thai bank A/C vs Having that amount in much better investment.

Most simple example having money in super fund in own country. Approx 8%

Edited September 25, 2023 by DrJack54

[treetops]

4 minutes ago, 2baht said:

Surely, at retirement age, after a lifetimes work, 800,000 Baht should'nt be to hard to come up with! ????

Indeed it shouldn't, but the financial benefits of keeping it in the UK (and probably many other places too) far away exceed those of keeping it locked up in a Thai bank, even if does then require the cost of an agent to get an extension of stay.

[2baht]

 

16 minutes ago, ezzra said:

The only other way would to pay a local agent the 12,000

My yearly extension costs 1900 baht! 5700 baht with multiple entry!

[Thailand]

3 minutes ago, 2baht said:

 

My yearly extension costs 1900 baht! 5700 baht with multiple entry!

And if the the 800K is in a UK bank as was the original question?

[DrJack54]

3 minutes ago, treetops said:

.....even if does then require the cost of an agent to get an extension of stay.

The other option is to use monthly transfers .

After all one does require money to live off. 

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

 

[2baht]

3 minutes ago, Thailand said:

And if the 800K is in a UK bank as was the original question?

Then send money every month or pay an agent! 

[Henryford]

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 September 26, 2023 by Henryford

[DrJack54]

7 minutes ago, 2baht said:

 

My yearly extension costs 1900 baht! 5700 baht with multiple entry!

Mine also however you did not include loss of opportunity.

5700+ 64,000

 

[DrJack54]

2 minutes ago, 2baht said:

Then send money every month or pay an agent! 

Have a coffee you are making zero sense 

[2baht]

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!

[HappyExpat57]

It's roughly a difference of 50k baht/year or 4k baht/month. Members who don't want the hassle to save that find the convenience a good value. To each his/her/their own.

[supermac]

Which UK bank Barclay's????? Who is next.

[DrJack54]

8 minutes ago, 2baht said:

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

As stated above. You are off topic and posting nonsense.

For just one example....Myself.

My beloved Thai partner of 10 years would have no access to the 800k in Thai bank account in my name only when I pass.

 

Yes one can make a will but that also takes time.

A solution is income method and the other is agent.

Something I will do in future.

 

Your simplistic approach of ....

"It costs 1900b ..." is silly. 

Edited September 26, 2023 by DrJack54

[2baht]

Just now, DrJack54 said:

Your simplistic approach of ....

"It costs 1900b ..." is silly. 

Cost of extension, true or not?

[DrJack54]

5 minutes ago, 2baht said:

Cost of extension, true or not?

Welcome to ignore.

Will let someone else try and educate you. 

 

Try Google "opportunity cost" 

It's economics 101. 

Edit: I did it for you...

 

"op·por·tu·ni·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 September 26, 2023 by DrJack54

[2baht]

Just now, DrJack54 said:

Welcome to ignore.

Will let someone else try and educate you. 

 

Try Google "opportunity cost" 

It's economics 101. 

Bye!

[jerrymahoney]

When I go to Immigration for retirement extension and there are 2 windows:

 

Window One 1900 baht with money-in-the-bank and Window Two 15,000 baht no money-in-the-bank ...

 

I will then consider it.

[DrJack54]

5 minutes ago, jerrymahoney said:

Window One 1900 baht with money-in-the-bank and Window Two 15,000 baht no money-in-the-bank ...

 

You didn't include Window 3.

Transfer 65k+ per month from home country. 

 

Personally I use 800k+ all year round in bank and of course I require 100k+ per month to live on.

 

My option is stupid.

I should be using income method.

Will switch at some point. 

 

 

[jerrymahoney]

Just now, DrJack54 said:

You didn't include Window 3.

Transfer 65k+ per month from home country. 

 

Personally I use 800k+ all year round in bank and of course I require 100k+ per month to live on.

 

My option is stupid.

I should be using income method.

Will switch at some point. 

 

 

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

[DrJack54]

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" 

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. 

[BritManToo]

1 hour ago, Pumpuynarak said:

Any thoughts/comments guys ? 

Maybe they can't open a UK savings account because they're expats living in Thailand.

Sure, it was easy to follow the best interest rates when I lived in the UK, but living here just not worth the effort.

 

Alternatively,

They just don't need the income, I receive more income than I spend, so why worry about interest!

Edited September 26, 2023 by BritManToo

[jerrymahoney]

4 minutes ago, DrJack54 said:

May I ask.

Does your embassy provide "income letter" 

No. American. And I use no-hassle SWIFT for monthly transfers.

[Pumpuynarak]

46 minutes ago, Henryford said:

and 4.84% in the UK.

Then you need to look about imo.

[bob smith]

1 hour ago, 2baht said:

 

My yearly extension costs 1900 baht! 5700 baht with multiple entry!

I'm seriously thinking about going back to Multiple Entry.

 

I want an excuse to get out of here every 90 days..

 

Mrs smith is against the idea though. She likes everything easy easy.

But my new attitude is if immigration give me even the slightest bit of the run around (need this paper, you forgot this document etc) then I go to an embassy out of country.

 

I don't have to play their silly little games anymore.

And I miss Laos. Especially their beer. 

Edited September 26, 2023 by bob smith

[anchadian]

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?