Krungsri Interest Rates

[Foxx]

Went to the bank today to reinvest a maturing fixed deposit. I was disappointed to learn that the rate on a 48 month deposit dropped from 2.2% (pretty pathetic) to 2.0% (even more pathetic) yesterday . What is odd is that the rates for 24 month and 26 month deposits are the same 2%, so no premium for tying up your cash for longer.

 

Anyway, changed my plan and invested in a short term bond fund (KFSMART-A) which has a yield to maturity of 2.22% (albeit with a duration of 4½ months, so there is reinvestment risk.)

[scubascuba3]

That's why it's better to leave money abroad where rates are higher, I'm currently getting 4% in UK, higher available

[Keeps]

My Mrs has various Krungsri accounts. Mainly fixed deposit but has one instant access. She got a notification the other day that the interest rate had dropped by 0.2%. 

 

Assume this has followed on from the BOT dropping the interest rate a month or so ago.

[Keeps]

3 minutes ago, scubascuba3 said:

That's why it's better to leave money abroad where rates are higher, I'm currently getting 4% in UK, higher available

Agree. I'm getting 5.3% currently on a 1 year fix on cash ISA and 4.75% on easy access.

 

Newcastle building society and Saga respectively. I'm also getting over 5% with Barclays on a relatively low amount but only because I've got premier banking. All adds up though compared to years of pitiful rates.

 

There are higher rates available through some of the App only institutions but I'm prepared to sacrifice a few quid to have the comfort of a name I know.

[Foxx]

36 minutes ago, scubascuba3 said:

That's why it's better to leave money abroad where rates are higher, I'm currently getting 4% in UK, higher available

 

This is an oft repeated fallacy.  You need to factor in exchange rates.  It wouldn't take much of a shift in the GBP/THB exchange rate to wipe out any potentially higher returns from investing offshore.  In fact, the existence of arbitrage means that you would expect to get exactly the same return from both onshore and offshore deposits.

[CallumWK]

47 minutes ago, Keeps said:

My Mrs has various Krungsri accounts. Mainly fixed deposit but has one instant access. She got a notification the other day that the interest rate had dropped by 0.2%. 

 

Assume this has followed on from the BOT dropping the interest rate a month or so ago.

 

I thought BOT left interest rates unchanged at the last meeting.

 

My European banks informed me last week that as of December 1 they will drop interest rates on all savings accounts by 0.2%

 

I signed up for a 4 month fixed term deposit at Bangkok bank 2 weeks ago paying 2%. Longer terms fixed deposits were significantly lower.

 

[Keeps]

6 minutes ago, CallumWK said:

 

I thought BOT left interest rates unchanged at the last meeting.

 

My European banks informed me last week that as of December 1 they will drop interest rates on all savings accounts by 0.2%

 

I signed up for a 4 month fixed term deposit at Bangkok bank 2 weeks ago paying 2%. Longer terms fixed deposits were significantly lower.

 

BOT cut the base rate from 2.5% to 2.25% on 16th October which I assume is the last meeting. Reduction in rates starting to trickle through now from the banks.

 

https://www.bot.or.th/en/news-and-media/news/news-20241016.html

[scubascuba3]

33 minutes ago, Foxx said:

 

This is an oft repeated fallacy.  You need to factor in exchange rates.  It wouldn't take much of a shift in the GBP/THB exchange rate to wipe out any potentially higher returns from investing offshore.  In fact, the existence of arbitrage means that you would expect to get exactly the same return from both onshore and offshore deposits.

Often people like you repeat that nonsense

[proton]

1 hour ago, Keeps said:

My Mrs has various Krungsri accounts. Mainly fixed deposit but has one instant access. She got a notification the other day that the interest rate had dropped by 0.2%. 

 

Assume this has followed on from the BOT dropping the interest rate a month or so ago.

 

They are advertising one instant access account at 1.5% mine is 0.90% cant see what the difference is will have to ask them.

[Keeps]

28 minutes ago, Foxx said:

 

This is an oft repeated fallacy.  You need to factor in exchange rates.  It wouldn't take much of a shift in the GBP/THB exchange rate to wipe out any potentially higher returns from investing offshore.  In fact, the existence of arbitrage means that you would expect to get exactly the same return from both onshore and offshore deposits.

I agree with that to some extent but it also depends on how often you need to transfer money to Thailand. If not too regularly then I would only send over when the exchange rate is favourable. I appreciate that this is not possible in everyone's situation and the exchange rate could of course plummet. 

 

The interest rates mentioned in previous posts are only regarding cash. I'm getting far higher on investments. Of course, holdings go up and down but I have certain holdings in major financial institutions that provide annual yields of 8-10%. No yields are guaranteed (as Covid showed us) but in good times they are a valuable source of income. I'm not too fussed regarding share pricing in these investments (unless they crashed dramatically) as I am more focused on the income aspect of this proportion of my investments.

[CallumWK]

6 minutes ago, proton said:

 

They are advertising one instant access account at 1.5% mine is 0.90% cant see what the difference is will have to ask them.

 

The difference is that the 1.5% one is for Thais only

[Keeps]

3 minutes ago, proton said:

 

They are advertising one instant access account at 1.5% mine is 0.90% cant see what the difference is will have to ask them.

Just speaking to the Mrs regarding her instant access with Krungsri but not easy as she is eating and didn't welcome the interruption. 

 

From what I can gather, it pays above 1.5% (but that may have come down following the BOT rate reduction so the rate you mention may well be correct) and she can make 2 free withdrawals per month. After that, she is charged 50 baht per withdrawal per month but no reduction in the interest rate or lost interest. 

 

That may well be the higher rate account you refer to. Definitely worth asking. 

[CallumWK]

7 minutes ago, Keeps said:

I agree with that to some extent but it also depends on how often you need to transfer money to Thailand. If not too regularly then I would only send over when the exchange rate is favourable. I appreciate that this is not possible in everyone's situation and the exchange rate could of course plummet. 

 

If you keep your funds abroad, like the proponent of it, then you don't have the choice to transfer only when the exchange rate is favourable, unless you live like a beggar on 10K a month.

Also, the poster in question claims to get 4%, that is 2% more than you can get in Thailand.

On the 800K deposit for your long term visit that is a difference of 16K, which is entirely lost on agent fees and transfer / ATM fees

[proton]

13 minutes ago, Keeps said:

Just speaking to the Mrs regarding her instant access with Krungsri but not easy as she is eating and didn't welcome the interruption. 

 

From what I can gather, it pays above 1.5% (but that may have come down following the BOT rate reduction so the rate you mention may well be correct) and she can make 2 free withdrawals per month. After that, she is charged 50 baht per withdrawal per month but no reduction in the interest rate or lost interest. 

 

That may well be the higher rate account you refer to. Definitely worth asking. 

 

Thats the one I have mee tee something or other, this is a new one, it may have a similar name

[proton]

18 minutes ago, CallumWK said:

 

The difference is that the 1.5% one is for Thais only

 

why would they send me an invitation in English and invite a sign up on line then?

[Foxx]

32 minutes ago, scubascuba3 said:

Often people like you repeat that nonsense

 

Only the ignorant would consider that to be nonsense.

[Keeps]

12 minutes ago, CallumWK said:

 

If you keep your funds abroad, like the proponent of it, then you don't have the choice to transfer only when the exchange rate is favourable, unless you live like a beggar on 10K a month.

Also, the poster in question claims to get 4%, that is 2% more than you can get in Thailand.

On the 800K deposit for your long term visit that is a difference of 16K, which is entirely lost on agent fees and transfer / ATM fees

I have the option to send money when I want and when the exchange rate is favourable (and maintain the lifestyle to which I am accustomed) unless it went tits up for something like 5+ years. As I said, I know that is not possible for everyone. 

 

I get your point regarding the 800k and the difference between interest earned and agent's fees. Who said anyone was referring to 'only' 800k?

[CallumWK]

6 minutes ago, proton said:

 

why would they send me an invitation in English and invite a sign up on line then?

You asked a question and I answered it, because you couldn't be bothered to look it up yourself online.

 

.

[CallumWK]

3 minutes ago, Keeps said:

I have the option to send money when I want and when the exchange rate is favourable (and maintain the lifestyle to which I am accustomed) unless it went tits up for something like 5+ years. As I said, I know that is not possible for everyone. 

 

I get your point regarding the 800k and the difference between interest earned and agent's fees. Who said anyone was referring to 'only' 800k?

I was not referring to you but the ignorant who posted about the 4%. And the situation get even worse if you have to transfer for living expenses.

[scubascuba3]

11 minutes ago, Foxx said:

 

Only the ignorant would consider that to be nonsense.

GBP faired strongly against baht for a months and months while still getting 5% interest UK vs Krungsri 0.9%, only recently has the exchange weakened since the PM was fired

[Keeps]

3 minutes ago, CallumWK said:

I was not referring to you but the ignorant who posted about the 4%. And the situation get even worse if you have to transfer for living expenses.

My bad. Your use of the word proponent flummoxed me. I really need to put down the latest Martina Cole and start reading a dictionary. 👍

[proton]

This is what I got sent, called only gain account, but why is it different from the other one where you can only withdraw twice a month with a lower interest rate?

 

[Keeps]

31 minutes ago, proton said:

This is what I got sent, called only gain account, but why is it different from the other one where you can only withdraw twice a month with a lower interest rate?

 

From what I can gather from the Mrs (who has finished eating now, but picking the teeth for 1 hour) is that it's all legit. It is a 1 year account, albeit with unlimited withdrawals but is operated ONLINE only. No going into the branch for withdrawals etc.

 

I assume (but probably wrong) that you would need another account to make online withdrawals to (not necessarily Krungsri) . Often the case that online only have a higher interest rate then day to day branch accounts. If you apply, you might have to nominate an alternative account at the outset to make withdrawals to, or if you attempted to make a withdrawal, then would have to nominate an account. 

 

I would caveat all the above by saying I am 3 cans of Tapper's in now - but I trust what the Mrs has just explained to me (to some degree).

 

Let me know how you get on as it's not an uninteresting proposition to park some spare cash.

[Hamus Yaigh]

3 hours ago, Foxx said:

Went to the bank today to reinvest a maturing fixed deposit. I was disappointed to learn that the rate on a 48 month deposit dropped from 2.2% (pretty pathetic) to 2.0% (even more pathetic) yesterday . What is odd is that the rates for 24 month and 26 month deposits are the same 2%, so no premium for tying up your cash for longer.

 

Anyway, changed my plan and invested in a short term bond fund (KFSMART-A) which has a yield to maturity of 2.22% (albeit with a duration of 4½ months, so there is reinvestment risk.)

In my book 2.22% is no different to 2.2% or pretty pathetic to use your phrase, when you can get 15% just investing passively in stock markets like the S&P500 index funds or more actively for much larger returns.

[proton]

1 hour ago, CallumWK said:

You asked a question and I answered it, because you couldn't be bothered to look it up yourself online.

 

.

 

I opened one of these Mee Tai Dai accounts years ago, others on here have a s well.

[CallumWK]

4 minutes ago, proton said:

 

I opened one of these Mee Tai Dai accounts years ago, others on here have a s well.

 

You definitely didn't open one online, as that can only be done by Thais, and pays 1.5% instead of the 0.9% you get

[Foxx]

25 minutes ago, Hamus Yaigh said:

In my book 2.22% is no different to 2.2% or pretty pathetic to use your phrase, when you can get 15% just investing passively in stock markets like the S&P500 index funds or more actively for much larger returns.

 

Oh, please pay attention.  It isn't 2.2% - it's gone down to 2.0%.  And as for S&P 500 funds, the S&P is trading at a P/E ratio of 27 suggesting it's seriously overpriced, and it is heavily invested in a very narrow range of tech companies.  NVIDIA 7.2%, Apple 6.7%, Microsoft 6.2% are the top three holdings.   NVIDIA's P/E ratio is 68.6, Apple's 36.8, and Microsoft 34.7.  The level of growth implied by these figures is almost certainly unobtainable.

And finally there's the foreign exchange risk.  So, whilst the S&P has done very well over the last few years, there's no reason to assume that that level of performance will continue, and plenty of reasons to assume it won't.

[CallumWK]

37 minutes ago, Hamus Yaigh said:

In my book 2.22% is no different to 2.2% or pretty pathetic to use your phrase, when you can get 15% just investing passively in stock markets like the S&P500 index funds or more actively for much larger returns.

 

Another investor who has only winners

[Keeps]

28 minutes ago, Foxx said:

 

Oh, please pay attention.  It isn't 2.2% - it's gone down to 2.0%.  And as for S&P 500 funds, the S&P is trading at a P/E ratio of 27 suggesting it's seriously overpriced, and it is heavily invested in a very narrow range of tech companies.  NVIDIA 7.2%, Apple 6.7%, Microsoft 6.2% are the top three holdings.   NVIDIA's P/E ratio is 68.6, Apple's 36.8, and Microsoft 34.7.  The level of growth implied by these figures is almost certainly unobtainable.

And finally there's the foreign exchange risk.  So, whilst the S&P has done very well over the last few years, there's no reason to assume that that level of performance will continue, and plenty of reasons to assume it won't.

All about growth as well, no income. Very few Blue Chip US Stocks pay a healthy dividend. UK Stock market is the King of the dividend income. 

 

Growth is all well and good in your younger years (I 100% went down that route) but as you get older, income is King or a combination of that and growth. 

[proton]

50 minutes ago, CallumWK said:

 

You definitely didn't open one online, as that can only be done by Thais, and pays 1.5% instead of the 0.9% you get

 

Never said I did, the new one is the online account. You open the Mee Tai Dai in branches. They are different accounts.