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

[scubascuba3]

If they start taxing transfers in the 65ks will be the first hit, meant to be income

[david555]

1 hour ago, DrJack54 said:

Very important word in your post is ....." WIFE" 

Many of us have relationship without the W word.

Your choice ....eating the "fruit" , but not singning the contract ....????

[TigerandDog]

5 hours ago, treetops said:

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.

and how many more banks will start and follow Barclays Bank announcement of closing all accounts for those expats no longer residing in the UK? It's only a matter of time until that happens and you'll have to permanently transfer your money here anyway.

Edited September 26, 2023 by TigerandDog

[spidermike007]

5 hours ago, DrJack54 said:

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. 

Mine will have access. The Atm card is kept in the safe and renewed regularly. She has the PIN code. As simple as that.

[HauptmannUK]

Since my wife and I have to visit the UK quite frequently I use the one year multi-entry 'visiting Thai family' visa costing about £150 from London embassy with no requirement have money in Thailand.  I keep about ฿400k in my Thai bank for emergencies over here (and its probably too much given I have a couple of credit cards with quite high limits).

At some point we'll probably stay in Thailand for the whole year and I'll go for the retirement visa. At the moment its easy to get 6% in UK, but irrespective of that there is no way I will 'donate' 800k to the Thai banking system. I will use an agent. If Thai Immi. increase the deposit amount beyond 800k I suspect there will be a massive move to agents.  Who in their right mind is going to leave, say, ฿1.5M sitting in a Thai bank with virtually no interest?

[retarius]

6 hours ago, Pumpuynarak said:

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 ? 

Seems to me the interest rate difference generates a paltry amount of extra income which does not overcome the hassle of maintaining an overseas bank account and trying arrange expensive transfers. Plus when you keep you money in a different currency that what you plan to spend it, then you open yourself to currency risk. Sterling is not a strong currency with the massive budget and trade deficits, with a recession appearing to be imminent and considerable inflation. I don't trust sterling long term to hold its value.....you might put the equivalent of 800,000 baht into a UK account and find that it winds uo being worth 600,000 baht a year later. Not for me.

[david555]

5 hours ago, DrJack54 said:

Bit off topic but my guess is that many folk here (myself included) have not included in their thinking ......what happens to the 800k if hit by a bus.

 

Access to those funds for Thai partner (if not married) would be difficult/impossible.

Or repatriated to family home country

 

Very little consequences if using income method. 

At most few baht would be tied up.

And could the partner in that case have

access ? Can she have the money you left at U.K. bank in that monthly system ....?

 

Unless you keep your money   cash In Thailand for her....when that bus hit you   ...????

Edited September 26, 2023 by david555

[wwest5829]

7 hours ago, Pumpuynarak said:

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 ? 

Not a Brit but I would observe that in using the monthly income method would need to figure in the exchange rate. Sorry Cousins, as an American I am currently benefitting as I use the monthly income method of USD coming in each month.

[alanrchase]

5 hours ago, Pumpuynarak said:

Then you need to look about imo.

Come on then, let us know which UK bank will give you 7% on the equivalent of 800,000 baht? I've had a look around and the best I have seen is 5.6%. My bank will do 5.5% but you need to deposit more than 800,000 baht for a one year fixed term. 

[Drumbuie]

The tax regime for interest in the UK has changed; it's considerably more complicated and if you already have an occupational pension on top of a state pension, plus some UK savings and/or investments, you will almost certainly find your savings income is liable to tax at 20%. HMRC has quite a broad interpretation of the term "savings interest" too. 

Keeping just over £18,000 (at current exchange rates) on deposit in Thailand and showing proof of it once a year is very simple; for the sake of saving £700 or so, or less if you're a higher rate taxpayer, after tax, it's not worth faffing around with proof of monthly income, particularly if that income fluctuates ( as mine does). 

[safarimike11]

7 hours ago, Pumpuynarak said:

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 ? 

1. I have a British friend who uses 400K on deposit and his pension to satisfy the "retirement extension" requirement. However, he informs me that every 90 days - as well as reporting - he has to provide a letter of proof of his pension which he needs to get from the British Embassy in Bangkok. Being as he doesn't drive - and lives over an hour outside the city, the only way he can get this is by taxi. He had a career in logistics and worked for some lucrative projects in London, China and Hong Kong, so it's a pity that he didn't save his money. 

2. I myself am only on a partial UK retirement pension (that doesn't increase as everyone knows), so the 800K is my only option.

[Geoffreyt]

Am I being naive but I have always thought that paying an agent to provide the required 800,000 was illegal because it involves some collusion with an immigration officer.

For years it seems to me it was referred to on a wink wink nudge nudge basis but now it is openly talked about as a legal option.

Can someone please set me straight.

 

 

 

[MicroB]

5 hours ago, anchadian said:

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?

Which bank is giving  7% on  a single £18.8k deposit? Regular Savers Accounts give this sort of rate, but the maximium deposit is capped at around £3000-4000 per year. And most of these accounts require you to open a current account with them. So it will get complicated if you have 4-5 different banks. Plus those current accounts will have monthly charges and deposit requirements.

 

You can go to a Fixed Rate Account and earn 6% on money with 12 month access. I think these rates have peaked, and will go down. Easy access accounts are giving around 5%, but again, I think these will drop. When, who knows.

 

A more realistic current rate now is about 5.5%, 44,000 earned on the mythical 800,000 deposit, but with quite restrictive access to that money.

 

UK savings rates will likely fall to 2-3%, end of 2024 maybe, but more probably 2025 (depending on the forecasting bank). Where will Thai savings rates be then? The UK is currently somewhere near the peak, the Thai rate  somewhere near the bottom (6 month deposit rate about 1%). Potentially in 24 months the differential will be very close.

 

 

[Iforbach]

I always get impression sum guys think 880 k is sterling 

So many time ars..es too get in real world 

[jimn]

Just giving my 2 pence worth. I use an agent, 12,900 baht because.

(1) I split my time 8 months Thailand and 4 months UK.

(2) I am asset rich and cash poor. I dont have 400k/800k to leave in a Thai bank but I own outright my UK house £350k and with my Thai wife our house in Thailand 7 million baht.

(3) I have a net UK monthly income of £2300 or just over 100k baht

(4) I dont wish to transfer 65k over a month. Much rather pay by no fee credit card where I can and transfer over via Wise 10,000 baht for cash when I need it.

[Speedhump]

Living a moderate lifestyle (no golf club, beer only, no bar girls, inpatient only inpatient health insurance, car 7 years old) I still need 70k a month income. I'm surprised that 65k monthly income is considered a bad option. A little money each month needs to be set aside for house repairs, car repairs, doctor, occasional need to buy new electric appliances, etc, these all add to living expenses. If a one room cheap Charlie, maybe I'd be lookin at lower outgoings. It proves that these indiscriminate questions are pointless I guess.

 

[Zapitapi]

9 hours ago, Pumpuynarak said:

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 ? 

valid point but please consider the currency exchange risk.. should u ever use that same monies in TH..the risk might be in your fav but may also diminish the gains very quickly or even lead to a net loss

[DrJack54]

2 hours ago, spidermike007 said:

As simple as that.

I think you should look into that further.

 

[RakThai22]

A much easier option is to get married to a nice Thai girl and get a marriage visa. Then you only need 400, 000 Baht in your bank account or a monthly income of 40K baht. There are literally hundreds of thousands, if not millions of wonderful Thai women who would jump at the opportunity to marry a foreigner right away. It's honestly the easist and most fun/sexiest option available ????

[Crazy Noobie]

I know everyone has their own reason on what method they are using, either the keeping of 800,000 baht in a Thai bank or the 65,000 baht monthly way. As there is no right or wrong way. As for myself, here is my method. I decided to go with the 65,000 baht per month method. I actually transfer over 100,000 baht each month, simple and easy. As I decided it was a waste to keep 800,000 baht sit in the bank and really not make me any money. So I took my 800,000 baht (actually I keep it in the USA, so it's in dollars) and I invest it monthly in crypto & stocks Buy low, sell high.. Instead of being a "Day Trader", I am a monthly trader. Most months, I almost double my investments. I make a ton more profit from the 800,000 baht instead of letting it rest in a Thai Bank. I might be 73 years old and I have a lot of time on my hands, so playing around with investments gives me something to do with my time. My son is attending CMU working on his bachelor degree. When he graduates, I plan on surprising him with a very large nest egg, so he can start his life on a better foundation then I did. 

[Gandtee]

I've just returned from a eighty klm trip to show proof that Bt800,000 is still untouched in my bank account after three months. The process took under 30 seconds. Can someone explain the logic of having to do this? If it had been touched I would have had to go through the process of getting another visa at three months.. The same thing would have applied if I hadn't reported and would have had to go through the process of getting a visa after one year. Where is the logic in this?????

[DULEROY]

Il y a 10 heures, Pumpuynarak a dit :

Je pose cette question, les gars, parce que je vois des taux d'intérêt sur les dépôts bancaires au Royaume-Uni jusqu'à 7 % alors que les intérêts ici en Thaïlande ne dépassent pas 2 %, donc je crois. Cela n'a aucun sens financier pour moi, sauf si vous n'avez pas un revenu mensuel de 65 000 $.

 

Maintenant, j'apprécie que si vous n'avez pas un revenu mensuel de 800 000 ou 65 000 $, vous êtes foutu et devez faire appel à un agent ou à un IO utile.

 

Des idées/commentaires les gars ? 

????

 

[CFCol]

9 hours ago, anchadian said:

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?

Compare like with like please. I expected UK interest v thai interest. Agent doesn't come into the picture.

And Dr. JACK, Get that will sorted otherwise if you pass your partner will be in the <deleted> for months.

[safarimike11]

2 hours ago, Geoffreyt said:

Am I being naive but I have always thought that paying an agent to provide the required 800,000 was illegal because it involves some collusion with an immigration officer.

For years it seems to me it was referred to on a wink wink nudge nudge basis but now it is openly talked about as a legal option.

Can someone please set me straight.

 

 

 

Sounds like you've already got it.

[jerrymahoney]

4 hours ago, scubascuba3 said:

If they start taxing transfers in the 65ks will be the first hit, meant to be income

Well, at least for me, my next retirement extension is early December so I will have almost a whole year to figure out the nitty-gritty especially US-Thai Tax Treaty implications.

[xylophone]

6 hours ago, shortstop2 said:

But for simplicity and peace of mind, I'm continuing to use the 800K method.  I also want some of my money in Thailand as I've been having problems setting up transfers.  I realize that this may not make economic sense.

I'm with you on this one, in as much as simplicity and peace of mind are of paramount importance to me, so I keep 800K in the bank here, to ensure that everything goes smoothly (provided Bangkok Bank get their act together with regards to producing the required printout to present to immigration).

 

HOWEVER, now that I have discovered peer-to-peer lending in NZ, where I'm currently earning more than 6.5% and could earn up to 9%, maybe I have to give this some more thought! Decisions decisions.

[Surasak]

9 hours ago, quake said:

Those were the days. 

We thought they'd never end.....

[Surasak]

8 hours ago, brianthainess said:

Surely it is much easier for a Thai partner to gain access from a Thai bank on your death.

I would suggest you look a little closer at that, it really is not what you may think!

[atpeace]

9 hours ago, DrJack54 said:

I don't think your plan will work.

My guess is that you need to show 12 months of transfers AND comply with money in bank rules for the 12 months.

So next week when I do my extension (money in the bank) , I will start the monthly transfers.

Run the 2 methods in parallel for the next 12 months.

Will then use income method when apply for extension 2024..

Thank- I forgot about the 12 month consecutive transfers.  I guess you could transfer the money back to your home country and start the income method first month of your new method. Probably lose 1-2 baht on fees and exchange rate costs but make it up on interest earned in my home country's bank.  Not big money but I have too much time to waste on a ~10,000 baht annual saving.  

[TallGuyJohninBKK]

11 hours ago, jerrymahoney said:

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

Apart from the issue of paying monthly fees for international fund transfers, which can be pricey depending on which banks are used, the other potential issue of doing ongoing 12 monthly foreign transfers per year is....

 

These days, banks in both the U.S. and the U.K. can be difficult with customers if they come to believe those customers are in fact living outside their home country, as the recent reports of UK Barclay's planning to close accounts of non-residents indicate.

 

Someone who's doing ongoing monthly and sizable transfers from their home country account to an account in their name in a foreign country (like Thailand) could possibly result in their home country bank starting to ask unpleasant questions at some point in time.