Fixed Deposit 15m From 2.75% To 4% From Scb In Baht

[Krub]

Is this a good deal for 100 to 300k baht ?

http://www.scb.co.th/en/nws/abt_nws_080618-mu.shtml

[lannarebirth]

With official government numbers placing inflation last month at 8.9%, no, it is not a good deal. Is it the best deal to be found right now? Perhaps. Thais seem to be buying land instead.

[Losangels]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

[LaoPo]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

Like Lannarebirth mentioned already, that's losing money, not making money with the present inflation at 8.9%/year.

OR:

+ 3.75%/year interest

- 8.9 %/year inflation

__________________

= .... ???

I was teached to do sums when I was still crawling around, in diapers

LaoPo

Edited July 2, 2008 by LaoPo

[Krub]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

Like Lannarebirth mentioned already, that's losing money, not making money with the present inflation at 8.9%/year.

OR:

+ 3.75%/year interest

- 8.9 %/year inflation

__________________

= .... ???

I was teached to do sums when I was still crawling around, in diapers

LaoPo

My use of words was not well chosen but surely if you have a few 100k baht it is not worth the hassle and risk to go and invest in other currencies, etc. ?

I am talking about staying in baht

I am a real novice at this...

[LaoPo]

My use of words was not well chosen but surely if you have a few 100k baht it is not worth the hassle and risk to go and invest in other currencies, etc. ?

I am talking about staying in baht

I am a real novice at this...

If you're talking a few 100K Baht and you don't need the money soon you might as well put it in a savings account.

But....don't put it for a long time, meaning: don't put it away for more than 3 months at the time or better, do a renewal every month.

The worldwide financial situation (also in Thailand) is very shaky at the moment and ANYTHING could happen, also sharp increases in interest rates (that's why the banks want people to 'nail' their money for 15 months and longer....!).

Don't EVER forget this: Banks are legalized mafia.

If I were in your shoes, I would go shopping with at least 3 banks and tell them:

"hey, Bank x offer me xx %; what do YOU offer me ?" and don't be shy; exaggerating and bluffing about the % might even help a little !

After all it's YOUR money you wish to protect.

Good luck.

LaoPo

[cclub75]

With official government numbers placing inflation last month at 8.9%, no, it is not a good deal.

Small detail : 8,9 % is the year-on-year inflation rate for june... not -yet- the inflation rate for 2008.

Even though I do believe that the figure for the whole year will be high. And anyway much higher than the ridiculous deposit rates thai banks are offering.

Other suggestion (for people who can) : in order to increase performance, it makes sense to go to Singapore : no taxes on interests.

[pkrv]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

Like Lannarebirth mentioned already, that's losing money, not making money with the present inflation at 8.9%/year.

OR:

+ 3.75%/year interest

- 8.9 %/year inflation

__________________

= .... ???

I was teached to do sums when I was still crawling around, in diapers

LaoPo

My use of words was not well chosen but surely if you have a few 100k baht it is not worth the hassle and risk to go and invest in other currencies, etc. ?

I am talking about staying in baht

I am a real novice at this...

I think you have asked an interesting question. As a Farang with a Bangkok Bank passbook savings account (no WP, Tourist Visa only) I don't get interest, do you get interest on any Thai accounts you currently have?

I keep some cash funds in Thailand and was just wondering if I opened one of these accounts would I get the interest? OK it’s not exactly wealth creating but it is better than the zero I currently get.

Just note the early withdraw penalties (mind you in an emergency you can still get to the funds). I note Bangkok Bank offers 2.5% for this type of product.

[apetley]

I think you have asked an interesting question. As a Farang with a Bangkok Bank passbook savings account (no WP, Tourist Visa only) I don't get interest, do you get interest on any Thai accounts you currently have?

I don't have a wp and am here on a non-o.

Get interest in a time deposit from Kasikorn although the first time I asked they wanted to see a wp. I told them I didn't work as I have funds sent from back home so they said ok and gave me the interest.

[samtam]

Why keep THB deposits? Interest rates are currently low; currency depreciation likely. Keep cash in another currency. This all applicable to anything above THB1m. Otherwise, it don't really matter, innit?

Edited July 2, 2008 by samtam

[OriginalPoster]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

Like Lannarebirth mentioned already, that's losing money, not making money with the present inflation at 8.9%/year.

OR:

+ 3.75%/year interest

- 8.9 %/year inflation

__________________

= .... ???

I was teached to do sums when I was still crawling around, in diapers

LaoPo

If you were to invest new money now, where would you invest it so that the return would beat inflation?

[LaoPo]

If you were to invest new money now, where would you invest it so that the return would beat inflation?

I would NOT invest money NOW; I am waiting till the markets hit the bottom.

When that will be ?

Nobody knows but my bet is within now and 6 months. I know that quite a few 'experts' (hmmm) tell investors to invest NOW, but personally I don't think that's a very good idea.

But, that's me.

LaoPo

[Krub]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

Like Lannarebirth mentioned already, that's losing money, not making money with the present inflation at 8.9%/year.

OR:

+ 3.75%/year interest

- 8.9 %/year inflation

__________________

= .... ???

I was teached to do sums when I was still crawling around, in diapers

LaoPo

My use of words was not well chosen but surely if you have a few 100k baht it is not worth the hassle and risk to go and invest in other currencies, etc. ?

I am talking about staying in baht

I am a real novice at this...

I think you have asked an interesting question. As a Farang with a Bangkok Bank passbook savings account (no WP, Tourist Visa only) I don't get interest, do you get interest on any Thai accounts you currently have?

I keep some cash funds in Thailand and was just wondering if I opened one of these accounts would I get the interest? OK it’s not exactly wealth creating but it is better than the zero I currently get.

Just note the early withdraw penalties (mind you in an emergency you can still get to the funds). I note Bangkok Bank offers 2.5% for this type of product.

I get interest on all my accounts (savings for the moment) at Bangkok Bank, SCB and Krung Thai (only 0,75%)

This 'promotion' runs until end of month and I figured it is better to chance it as you keep access to the funds if you really needed them (loss of interest but still get 2% instead of the 0.75)

[OriginalPoster]

If you were to invest new money now, where would you invest it so that the return would beat inflation?

I would NOT invest money NOW; I am waiting till the markets hit the bottom.

When that will be ?

Nobody knows but my bet is within now and 6 months. I know that quite a few 'experts' (hmmm) tell investors to invest NOW, but personally I don't think that's a very good idea.

But, that's me.

LaoPo

By "investing" I didn't necessarily mean putting the money in stocks. Putting money in the bank, or in a mattress, isn't glamerous but that's investing too. I gather that's the approach your advocating for at least the next few months.

[pkrv]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

Like Lannarebirth mentioned already, that's losing money, not making money with the present inflation at 8.9%/year.

OR:

+ 3.75%/year interest

- 8.9 %/year inflation

__________________

= .... ???

I was teached to do sums when I was still crawling around, in diapers

LaoPo

My use of words was not well chosen but surely if you have a few 100k baht it is not worth the hassle and risk to go and invest in other currencies, etc. ?

I am talking about staying in baht

I am a real novice at this...

I think you have asked an interesting question. As a Farang with a Bangkok Bank passbook savings account (no WP, Tourist Visa only) I don't get interest, do you get interest on any Thai accounts you currently have?

I keep some cash funds in Thailand and was just wondering if I opened one of these accounts would I get the interest? OK it's not exactly wealth creating but it is better than the zero I currently get.

Just note the early withdraw penalties (mind you in an emergency you can still get to the funds). I note Bangkok Bank offers 2.5% for this type of product.

I get interest on all my accounts (savings for the moment) at Bangkok Bank, SCB and Krung Thai (only 0,75%)

This 'promotion' runs until end of month and I figured it is better to chance it as you keep access to the funds if you really needed them (loss of interest but still get 2% instead of the 0.75)

Thanks, I can assure you many of us do not get interest at all! It sounds like you are trying to work out how to obtain a higher rate of interest from a bank account. Well that is definitly of use, thanks for pointing out the option.

[Seneque]

Since BOT likely to increase interest rate soon, I'll suggest UOB fix depo for 4 mos @ 3.25% or 12 mos for 3.75%, minimum 100K. Hurry the offer expires July 31th

Like Lannarebirth mentioned already, that's losing money, not making money with the present inflation at 8.9%/year.

OR:

+ 3.75%/year interest

- 8.9 %/year inflation

__________________

= .... ???

I was teached to do sums when I was still crawling around, in diapers

LaoPo

minus 15% tax on interest !!

[AFKAFSinLOS]

My use of words was not well chosen but surely if you have a few 100k baht it is not worth the hassle and risk to go and invest in other currencies, etc. ?

I am talking about staying in baht

I am a real novice at this...

If you're talking a few 100K Baht and you don't need the money soon you might as well put it in a savings account.

But....don't put it for a long time, meaning: don't put it away for more than 3 months at the time or better, do a renewal every month.

The worldwide financial situation (also in Thailand) is very shaky at the moment and ANYTHING could happen, also sharp increases in interest rates (that's why the banks want people to 'nail' their money for 15 months and longer....!).

Don't EVER forget this: Banks are legalized mafia.

If I were in your shoes, I would go shopping with at least 3 banks and tell them:

"hey, Bank x offer me xx %; what do YOU offer me ?" and don't be shy; exaggerating and bluffing about the % might even help a little !

After all it's YOUR money you wish to protect.

Good luck.

LaoPo

Mmm... methinks you don't know very much about banking in Thailand. What you say there might be relevant in some countries, but I think you need to move beyond diapers maths #101 and consider:

1) Average savings rates in Thailand are low at only around 0.75% so you are actually advising OP to take less, than they've found elsewhere

2) Banks in Thailand won't negotiate rates on THB 100k - 300k. Not worth trying...

3) Banks are not legalized mafia. You've been watching too much television or have paranoia.

4) Deposits in Thailand are currently government protected. That 100k - 300k is hence covered by government.

5) Sure equities, property, bonds are all likely to outperform cash long term. But all are higher risk than cash, if protecting your capital is your main objective.

All in all, for someone wanting to keep their money safely in cash, wanting THB and not currency risk, and unlikely to need the money in the timeframe, it is a reasonable deal and favourable compared to normal THB savings rates, which are a pittance, and other cash alternatives.

Personally I wouldn't go for it at this stage as:

1) I believe govt rates and hence savings rates will rise, so there will be better deals in coming months. (Rate increases on bonds are already priced in, and perhaps too far)

2) For the amounts involved, an extra say THB 2,000+ on THB 100k for tying up my capital is not worth the drop in liquidity, and lack of access to my funds. For someone else the extra income may be more important though.

[pkrv]

All in all, for someone wanting to keep their money safely in cash, wanting THB and not currency risk, and unlikely to need the money in the timeframe, it is a reasonable deal and favourable compared to normal THB savings rates, which are a pittance, and other cash alternatives.

I agree - This answers the OP's question. Basically a higher rate interest bank account (with penalties for early withdrawal which are also understood by the OP)

As an aside it must cost Thailand a fortune to have different bank accounts for Farangs and Thais (interest/no interest, online banking/no on line banking). Does anyone know why they do this it seems crazy?

Here in the UK cheques are dead - everything is done online (or by automated phone) and cash is almost never deposited (because it is monitored behind the scenes for money laundering). Cash withdrawal is obviously available everywhere.

[twix38]

I don't fully understand this reply

"Why keep THB deposits? Interest rates are currently low; currency depreciation likely. Keep cash in another currency. This all applicable to anything above THB1m. Otherwise, it don't really matter, innit? "

Why is devaluation expected?

I am planning to bring GBP 50k to Thailand and notice the exch rate has risen from low 60's to over mid 60's. I also believe Sterling will weaken going forward, but what about the Baht? Concern is the Thai/Sterling rate and will it be back off to low 60's or below or back up to 70's and above?

Any thoughts?

[jerry921]

I don't fully understand this reply

"Why keep THB deposits? Interest rates are currently low; currency depreciation likely. Keep cash in another currency. This all applicable to anything above THB1m. Otherwise, it don't really matter, innit? "

Why is devaluation expected?

I am planning to bring GBP 50k to Thailand and notice the exch rate has risen from low 60's to over mid 60's. I also believe Sterling will weaken going forward, but what about the Baht? Concern is the Thai/Sterling rate and will it be back off to low 60's or below or back up to 70's and above?

Any thoughts?

I also don't understand why devaluation is expected. The Baht has been relatively stable in the last few months with respect to the dollar, while the dollar as sunk like a stone versus the Euro. My expectation would be for the BoT to raise interest rates to combat inflation and let the Baht appreciate versus the US dollar unless the US Fed raises interest rates also.

[LaoPo]

Mmm... methinks you don't know very much about banking in Thailand. Correct; but worldwide, banks act more or less the same; they want only 1 thing...YOUR money. That's why they cheat upon their customers

3) Banks are not legalized mafia. You've been watching too much television or have paranoia. You're wrong; so very wrong. Banks ARE legalized Mafia. They never told you but they are ! I could give you some fine examples, even from a few days ago but that's something for another thread.

4) Deposits in Thailand are currently government protected. That 100k - 300k is hence covered by government. Government protected....that's nice ! Good for you that you still believe in a(ny) government; especially the Thai one. I hope you will understand that I don't ?!

A. I don't trust ANY bank, and

B. I don't trust ANY government.

1) I believe govt rates and hence savings rates will rise, so there will be better deals in coming months. (Rate increases on bonds are already priced in, and perhaps too far) That's what I said.

2) For the amounts involved, an extra say THB 2,000+ on THB 100k for tying up my capital is not worth the drop in liquidity, and lack of access to my funds. For someone else the extra income may be more important though. I agree

See my answers in blue-bold

LaoPo

[jfchandler]

This is a new discussion for me.... But...for the many of us who need to meet the 800,000 baht in a Thai bank requirement for retirement visa extensions, time deposit accounts seem like a pretty good option.

Time deposits are certainly better than the less than 1% regular savings account interest rate.

And if you need to keep 800K Thai baht in a Thai bank for visa reasons, what other approach would be any better???

3-4% rates in Thailand for those now are pretty much what the most competitive U.S. banks are paying for short-term CDs and online savings accounts at present.