Thai Passbook Saving Accounts

[cm-happy]

Thai passbook saving accounts. are they guaranteed? What happens if a bank fails. Is there a Thai Ministry similar to the FDIC (Federal deposit Insurance Corporation) that gurantees depositors accounts in case of bank failure.

[jbaldwin]

Yes - bank deposits currently have an unlimited guarantee from the Financial Institutions Development Fund.

There are proposals that in five years time the level of insurance coverage will be capped at 1.0 million baht per customer

[stateman]

Take these guarantee with a grain of salt, in the same light as the guarantee offered by FDIC. Compare the amount of debt various government entities owe vs. the assets available to back the guarantee. You will then understand your guaranteed fund may be a fraction of its worth today.

[jonniebkk]

I have never heard or read that bank deposits are guaranteed in Thailand (most countries DO NOT have such guarantees). If they were, I am sure banks would highlight such protection in their advertising and I have never seen anything like that. Like any country, when a bank gets into financial difficulty, the central bank or finance ministry/treasury will step in and try to arrange a "friendly" merger with another healthy bank. In that case, your money would be secure. If the bank cannot be saved and goes belly-up...your money goes away too if you don't get it out before the doors close for good.

If you are a foreigner, I would only keep enough in a Thai bank for a few months living expenses (or what you need to qualify for your visa). Most of the major Thai banks are fairly secure so not much to worry about. However, when and if the Thai economy starts to hit the skids big time, monitor the business news more closely re the health of your bank if you worry about potential problems.

[dave111223]

Yes - bank deposits currently have an unlimited guarantee from the Financial Institutions Development Fund.

There are proposals that in five years time the level of insurance coverage will be capped at 1.0 million baht per customer

I heard that the cap was currently at 1m (per account)?