Where to hold and manage funds UK - Thailand?

[mja1906]

For an older couple planning to permanently move from UK to Thailand, what is the best way to manage money between UK and Thailand? I don't think holding large sums in a Thai bank account is a good idea. I think holding just enough for living here (and a bit extra maybe), then holding the rest in a UK or other bank account is a safer idea. Any suggestions of where to hold remaining funds? They plan to use an HSBC online account, but prefer to diversify and have another account they can access money from.  Also, they might buy a condo so would need to transfer a lump sum for that. Thanks !

[Mike Lister]

It's down to personal preference really, Thai banks are perfectly safe and deposits are insured but only up to THB 1 mill. FWIW I hold 90% of my funds in Thai banks and 10% in HSBC UK.

[Stocky]

I use HSBC Singapore for about about 75% of savings and investments, 23% in the UK in property and savings, and just 2% in Thailand. Easy to manage and move funds from Singapore and it's nearby if you ever need to visit the bank.

 

.

[mja1906]

Interesting. Thai banks insuring up to 1mil only is not that much which is why they prefer to hold outside. What's the difference between HSBC UK and HSBC SIngapore? This elderly couple don't plan to return to the UK for anything, so having UK savings, unless they can be transferred online, doesn't seem wise. They need to be able to access/transfer their funds. 

[Stocky]

1 minute ago, mja1906 said:

What's the difference between HSBC UK and HSBC SIngapore?

HSBC Singapore aren't about to debank me because I'm not resident.

[Mike Lister]

The issue is not the bank or its location but the currency the funds are held in. GBP/THB has been volatile in the past and whilst it is currently healthy at around 45, it has gone as low as 37 in the past and forecasts are it will return to that level in due course.

[PJ71]

Money in Thai bank accounts make next to zero interest, currently in uk you can get 5-6% without even trying.

 

With a decent amount that'll cover a fair bit of annual living expenses in thailand.

[Mike Lister]

12 minutes ago, PJ71 said:

Money in Thai bank accounts make next to zero interest, currently in uk you can get 5-6% without even trying.

 

With a decent amount that'll cover a fair bit of annual living expenses in thailand.

Sure, but inside 12 months the rates will be fairly similar. The one thing a retiree absolutely must avoid in retirement in Thailand is exchange rate angst which has seen huge numbers of people end their retirement here early.

[persimmon]

5 hours ago, Mike Lister said:

Sure, but inside 12 months the rates will be fairly similar. The one thing a retiree absolutely must avoid in retirement in Thailand is exchange rate angst which has seen huge numbers of people end their retirement here early.

Is there any way of avoiding x-rate worries though , apart from holding large amounts of Baht , which most people won`t want to do ?

 

[Mike Lister]

25 minutes ago, persimmon said:

Is there any way of avoiding x-rate worries though , apart from holding large amounts of Baht , which most people won`t want to do ?

 

I don't understand why, if you can buy at 45 (or 36 per USD) the chances of a currency gain are quite substantial.

[helloagain]

19 hours ago, mja1906 said:

For an older couple planning to permanently move from UK to Thailand, what is the best way to manage money between UK and Thailand? I don't think holding large sums in a Thai bank account is a good idea. I think holding just enough for living here (and a bit extra maybe), then holding the rest in a UK or other bank account is a safer idea. Any suggestions of where to hold remaining funds? They plan to use an HSBC online account, but prefer to diversify and have another account they can access money from.  Also, they might buy a condo so would need to transfer a lump sum for that. Thanks !

Don't forget starting 1st Jan 2024 if you here for 180 days you become a tax resident and pay thai tax next year on what you send here. Google it.

[Stocky]

11 hours ago, persimmon said:

Is there any way of avoiding x-rate worries though , apart from holding large amounts of Baht , which most people won`t want to do ?

Singapore Dollar to Thai Baht exchange rate is fairly stable and the Singapore economy and banking system are solid. It has traded around Bht24 to the SGD the last twenty years, makes forward planning a little easier. 

 

[In the jungle]

One reason for keeping the funds outside Thailand would be to do with their wills and the administration of their estates. 

[Mike Lister]

 

Holding any ASEAN currency, preferably SGD, as the previous poster said, is one reasonable alternative since ASEAN members are required to keep their currencies within a range of each other. Holding USD, if you can buy at the right price (say 36+) and hold it, is another. But historically, THB at 29 is not unknown.

 

If you want to get serious you can but forward contracts or even take out an option for a future date, BOT plays the forwards market quite extensively. But that requires some market savvy and tech knowhow so not for everyone. 

 

 

[Mike Lister]

1 minute ago, In the jungle said:

One reason for keeping the funds outside Thailand would be to do with their wills and the administration of their estates. 

Not really that different, inside or out, probate is still required.

[NoshowJones]

21 hours ago, Mike Lister said:

It's down to personal preference really, Thai banks are perfectly safe and deposits are insured but only up to THB 1 mill. FWIW I hold 90% of my funds in Thai banks and 10% in HSBC UK.

What about keeping the majority of your savings with Wise. You can add and take out money as you please both here in Thailand or in the UK. Please note that I am not necessary talking about the Wise debit card that needs you to have a UK address before you can apply for it.

[NoshowJones]

13 hours ago, Mike Lister said:

I don't understand why, if you can buy at 45 (or 36 per USD) the chances of a currency gain are quite substantial.

What about keeping most of your savings in a UK bank for the interest then transfer some of your savings in GBP to Wise I know that with Wise it is not really a bank account as I don't think there will be any interest?

[Chivas]

20 hours ago, Mike Lister said:

The issue is not the bank or its location but the currency the funds are held in. GBP/THB has been volatile in the past and whilst it is currently healthy at around 45, it has gone as low as 37 in the past and forecasts are it will return to that level in due course.

 

To Sterling yes but lets not forget there are two pairings that make up the bottom line

 

I agree on one side the Baht may well appreciate against the USD before long but likewise so could Sterling appreciate against the same USD on the opposite side of the pairings

 

Out of interest Im topping up frequently at 45 to SCB

[noobexpat]

14 hours ago, persimmon said:

Is there any way of avoiding x-rate worries though , apart from holding large amounts of Baht , which most people won`t want to do ?

 

 

You have to make money in other areas.

Eg, £ weakens and ftse 100 fund goes up.

 

 

[noobexpat]

18 minutes ago, NoshowJones said:

then transfer some of your savings in GBP to Wise

 

To achieve what?

You can't convert that £ to baht and leave in wise ...or can you??

 

[Chivas]

3 minutes ago, noobexpat said:

 

To achieve what?

You can't convert that £ to baht and leave in wise ...or can you??

 

Yes you can

[NoshowJones]

1 minute ago, noobexpat said:

 

To achieve what?

You can't convert that £ to baht and leave in wise ...or can you??

 

 What is to stop you transferring an amount of GBP to Wise and keeping it there until you may want to transfer some of it to your Thai bank account. I am not saying it is the best thing to do, it would depend on your own circumstances. Wise handles all sorts of foreign money.

[VocalNeal]

22 hours ago, mja1906 said:

what is the best way to manage money between UK and Thailand?

 

22 hours ago, mja1906 said:

They plan to use an HSBC online account, but prefer to diversify and have another account they can access money from.  !

 

is there any advantage to opening a separate account with HSBC in IOM? They could easily convert that to an offshore account if residency is called into question.

[Liverpool Lou]

23 hours ago, mja1906 said:

I don't think holding large sums in a Thai bank account is a good idea.

Why?  What makes having funds in a Thai bank any less safe than those funds being in any other countries' banks?

[Liverpool Lou]

21 hours ago, Stocky said:

21 hours ago, mja1906 said:

What's the difference between HSBC UK and HSBC SIngapore?

HSBC Singapore aren't about to debank me because I'm not resident.

That's because HSBC Singapore know that you're a non-resident expat and they allow it!   HSBC (UK) doesn't for non-residents, they're not doing anything that they're not obligated to do.

[Stocky]

2 minutes ago, Liverpool Lou said:

That's because HSBC Singapore know that you're a non-resident expat and they allow it!   HSBC (UK) doesn't for non-residents, they're not doing anything that they're not obligated to do.

Exactly, so what's your point? 

[Liverpool Lou]

4 hours ago, helloagain said:

Don't forget starting 1st Jan 2024 if you here for 180 days you become a tax resident and pay thai tax next year on what you send here.

"...pay thai tax next year on what you send here".

Don't forget that is not on everything, only on that amount above the allowances.

[Celsius]

21 hours ago, mja1906 said:

This elderly couple don't plan to return to the UK for anything, so

 

yeah sure 

 

they'll be begging to go back to mother NHS as soon as one of them kisses the asphalt

 

with a GoFundMe to boot

[Liverpool Lou]

1 hour ago, NoshowJones said:

What about keeping the majority of your savings with Wise. You can add and take out money as you please both here in Thailand or in the UK. Please note that I am not necessary talking about the Wise debit card that needs you to have a UK address before you can apply for it.

What protection does Wise give to deposited funds?

[Liverpool Lou]

9 minutes ago, Stocky said:

12 minutes ago, Liverpool Lou said:

That's because HSBC Singapore know that you're a non-resident expat and they allow it!   HSBC (UK) doesn't for non-residents, they're not doing anything that they're not obligated to do.

Exactly, so what's your point? 

Well, your post suggested that HSBC in the UK may be doing something untoward that HSBC Sing isn't and that's not the case.  That was my point, what was yours?