The SCB Pra-Gun-Triple-Seven 7 year life insurance savings account - does anybody understand this ?

[beautifulthailand99]

https://www.scb.co.th/en/personal-banking/insurance/savings-insurance/triple-seven-77-7.html

 

My wife has come into some money from the sale of her condo and the girl at SCB recommended this life insurance savings product that seems to have a 10% annual return compounded if you stay to full term at 7 years. She doesn't need the life insurance since we are childless and she is 58. Is this too good to be true, is there a catch? My first imperfect understanding is that you have to go to full term to realise this and if you bail out early for any reason you earn nothing (if indeed you can bail out). Any thoughts are most welcome and are there any other alternatives to products such as this which seem to guarantee your capital?

Edited November 23, 2023 by beautifulthailand99

[gamb00ler]

The SCB EZ savings account is perhaps a better deal.  It pays 1.5% APR on a balance up to 1M ฿.  If you let the interest accumulate and compound in that account for 7 years the total return will be 10.98% provided you don't let the balance exceed 1M ฿.  For example if you deposit about 901,000฿, after 7 years you will have very close to 1M฿.  Of course you can start with less capital if you wish.

 

 

[beautifulthailand99]

4 minutes ago, gamb00ler said:

The SCB EZ savings account is perhaps a better deal.  It pays 1.5% APR on a balance up to 1M ฿.  If you let the interest accumulate and compound in that account for 7 years the total return will be 10.98% provided you don't let the balance exceed 1M ฿.  For example if you deposit about 901,000฿, after 7 years you will have very close to 1M฿.  Of course you can start with less capital if you wish.

 

 

My wife seems to beleive it is 10% every year compounded - I think that is nonsense and impossible. Is it 10% over the whole 7 years then ? The banks here are thieves I'm getting 6% in a 1 year fixed currently in the UK. It's a rigged game here without even a nod to true competition.

[gamb00ler]

The example they give is quite clear.  The following uses the assumption that investor starts at age 45.

You pay a premium of 983K each year for 7 years.  They keep most of that money until you turn 77.

At year end of each of those first 7 years they give you a cash benefit of 100K, but keep 883K.

At the end of the 7 years the net total you have given them is 7 * 883K = 6,181K

For the years remaining up to when you turn 76 SCB will give you 100K without requiring you to pay any more premiums.

At the end of the year you turn 77 they will give you back the 6,181K plus another 819K = 7M.

The total you receive from SCB is 10,100,000฿ and you paid in 6,881,000฿

So you come out ahead by 3,219,000฿ for SCB having 6,181,000฿ of your money for many years.

To get that same total benefit you would need to let money earn compounded interest at 1.5% for about 28 years

Edited November 23, 2023 by gamb00ler

[Gulfsailor]

It’s a life insurance. You pay premiums for seven years and won’t get back the money you put in unless you die or when you reach the age of 77. In return you get 10% of your paid yearly premium. To do a math example for your wife’s age; 1 million per year premium, 100k cashback per year, start at age 58.

year 1: put in 1m, receive 10%
year 2: put in 2m, receive 5%

year 3: put in 3m, receive 3.3%

year 4: put in 4m, receive 2.5%

year 5: put in 5m, receive 2%

year 6: put in 6m, receive 1.7%

year 7-19: put in 7m, receive 1.4% per year. 

Total interest earned in 19 years = 42.7% or 1.9% compounded per year. 

 

so it’s only a good deal if you are interested in the life insurance eg expect to have an accident and die, or expect to die of other causes within a just a few years. 
 

[beautifulthailand99]

Brillant answers many thanks it seemed to good to be true the way she explained it so i said I would do due dilgence. Those last 2 answers are just that. Looks like the SCB EZ savings account is  the way to go the,

[kennw]

On 11/24/2023 at 1:31 AM, beautifulthailand99 said:

Brillant answers many thanks it seemed to good to be true the way she explained it so i said I would do due dilgence. Those last 2 answers are just that. Looks like the SCB EZ savings account is  the way to go the,

Have been with SCB for more than 30 years, now seriously considering moving to another bank. Reduction in services, stricter rules, less access, ATM and branch closures, reduced liability, focus on money making, like insurance. For me its like a good apple gone bad.

[digbeth]

with insurance product such as this, if you bail out earlier you might even be at a loss

but you can borrow against the value, with interest if you need the money occasionally

[treetops]

On 11/23/2023 at 5:47 PM, beautifulthailand99 said:

My wife seems to beleive it is 10% every year compounded - I think that is nonsense and impossible.

You are right and your wife is wrong.  It's 10% of the sum insured as cashback every year, but the premium is important here and they've probably just loaded it so they can afford to give you back 10% at the end of the year.

 

[beautifulthailand99]

Just now, treetops said:

You are right and your wife is wrong.  It's 10% of the sum insured as cashback every year, but the premium is important here and they've probably just loaded it so they can afford to give you back 10% at the end of the year.

 

Thanks if it's too good to be true then it probably is dounly so in Thailand. Coming to the conclusion the best safe haven for her monet is the 1.5% SCB EZ savings account that others have mentioned. The GSB Goverment Savings Bank seems to be popular though does anybody know anyjthing about them there website is useless or at least the English version is and when we walked into the Jomtien branch at the bus station it loooked like a typical Thai government office rather than the slick private banks I've been used to.

[DrJoy]

On 11/24/2023 at 12:39 AM, gamb00ler said:

It pays 1.5% APR on a balance up to 1M ฿.

Nope, there are few changes now -

 

Product Details

Non-Passbook Savings Account with Mobile Banking service, receive 1.5 % interest on deposits of 2,000,000 Baht.
 

DEPOSIT AMOUNT	INTEREST RATE
1-2,000,000 Baht	1.50%
More than 2,000,000 Baht -  3,000,000 Baht	1.00%
More than 3,000,000 Baht	0.65%

[DrJoy]

On 11/27/2023 at 2:57 PM, beautifulthailand99 said:

The GSB Goverment Savings Bank seems to be popular though does anybody know anyjthing about them there website is useless or at least the English version

Be warned, as a foreigner you cannot use their (GSB) mobile application, as it requires a Thai national ID card number only.

 

It cannot be activated with a Passport number 

 

 

There were report on this forum that someone was able to get the application working with their Foreigners Pink card and House Book.

Please check with the branch first before opening with GSB

[Liverpool Lou]

On 11/24/2023 at 12:08 AM, beautifulthailand99 said:

My wife has come into some money from the sale of her condo and the girl at SCB recommended this life insurance savings product that seems to have a 10% annual return compounded if you stay to full term at 7 years.

It appears to be a cash return of 10% (B100,000 of your own money from a B983,000 annual premium in the example) at the end of each year, not a compounded interest/growth rate which is not mentioned.

EDIT: Oops, too late.

Edited December 4, 2023 by Liverpool Lou

[Liverpool Lou]

On 11/24/2023 at 12:47 AM, beautifulthailand99 said:

My wife seems to beleive it is 10% every year compounded - I think that is nonsense and impossible.

You are correct.

[beautifulthailand99]

2 hours ago, Liverpool Lou said:

It appears to be a cash return of 10% (B100,000 of your own money from a B983,000 annual premium in the example) at the end of each year, not a compounded interest/growth rate which is not mentioned.

EDIT: Oops, too late.

A sneaky way of selling it - she was with the teller for a long time whiklst I sat at the back playing with my phone and initially she was convinced it was the 10% annual. In the UK this would be rank miselling but then TIT !

[beautifulthailand99]

2 hours ago, DrJoy said:

Be warned, as a foreigner you cannot use their (GSB) mobile application, as it requires a Thai national ID card number only.

 

It cannot be activated with a Passport number 

 

 

There were report on this forum that someone was able to get the application working with their Foreigners Pink card and House Book.

Please check with the branch first before opening with GSB

Thanks but not to worry she does all the money side of things in Thailand I just do due dilegecne asking you excellent gentlemen for your collective wisdom. Much appreciated. The banking cartels here rob the peole dry. In the UK I'm getting 5% interest on easy acess with Tandem app only bank and commercial interrest rates are around 6% so roughly 1% is their cut. In Thailand I think they are charging similar for loans and giving at best 1.5% - a hefty cut indeed.

[Liverpool Lou]

5 hours ago, beautifulthailand99 said:

7 hours ago, Liverpool Lou said:

It appears to be a cash return of 10% (B100,000 of your own money from a B983,000 annual premium in the example) at the end of each year, not a compounded interest/growth rate which is not mentioned.

EDIT: Oops, too late.

A sneaky way of selling it - she was with the teller for a long time whiklst I sat at the back playing with my phone and initially she was convinced it was the 10% annual. In the UK this would be rank miselling but then TIT !

Perhaps your missus just misunderstood what she was being told and there was no mis-selling?   Their description of the policy on their website, very clearly, makes no mention of 10% interest annually.