Thai Bank Interest Bearing Options

[Sheryl]

Probably a dumb question but then I readily confess to being ignorant when it comes to matters financial....

Until now I have kept just the minimum required for visa purposes in a regular savings account in Thailand

Thinking of transferring in more and putting it into some type of longer term account, both to help with visa issues (I keep having problemns getting trabsfers effected in time given new 3 month rule) and because I have some $ above the insured limit that I need to move out of my US bank anyhow

Seem to recall that expats are limited tho in being able to have accounts that yield interest

and also that these are called different tyhings in Thailand than they are back home

Advice please? Anything reasonably safe (as things go these days!) that pays interest abnd would meet retirement visa qualifications (i.e. be a bank in Thailand)?

Appreciate suggestions..

[BalthazarBeefheart]

Sheryl,

I opened a fixed account with Bangkok Bank Emporium branch with a non-imm visa although that was a few years back. Here are their current rates

http://www.bangkokbank.com/Bangkok+Bank/We...posit+Rates.htm

I think you will find from another recent post that there is adequate deposit cover - in fact on the Bangkok Bank website it states deposits are guaranteed by the government.

Another possibility is Khrung Thai bank whose head office is situated between Suk Soi 1 and 3 they offer similar rates and are a state-owned bank so should be safer in uncertain times. I also opened an a/c with them on non-imm visa.

It may be best if you started enquiries at your current bank where you hold a savings account if the rules have changed hopefully they will waive them for you.

I hope that helps a little - if you have any questions dont hesitate to ask.

Cheers BB

[Sheryl]

Thanks BB, that's very helpful

2 other questions:

1) If I open a fixed term accounht in the bank where I currently have my regular savings (Kasikorn), does the maximum insured amount (which I gather will decrease to 1 million baht by 2010) apply to each account or to all accounts in a person's name? Because if the latetr I'd do better to make the second account in another bank, although for convenience being in the same bank would be easiest...

Also - would money in HBSC count for retirement visa purposes or does it need to be a Thai bank (as opposed to a bank in Thailand)??

Many thanks

[BalthazarBeefheart]

Thanks BB, that's very helpful

2 other questions:

1) If I open a fixed term accounht in the bank where I currently have my regular savings (Kasikorn), does the maximum insured amount (which I gather will decrease to 1 million baht by 2010) apply to each account or to all accounts in a person's name? Because if the latetr I'd do better to make the second account in another bank, although for convenience being in the same bank would be easiest...

Also - would money in HBSC count for retirement visa purposes or does it need to be a Thai bank (as opposed to a bank in Thailand)??

Many thanks

Sheryl,

In answer to the first question the maximum coverage will be 1 million baht per depositor per institution. As I am reading it the legislation came into force last month and the coverage

is as follows

The blanket guarantee shall be gradually phased-out to limited coverage of 1 million Baht

within 4 years as follows :

1st year : full amount of deposit

2nd year : 100 million Baht

3rd year : 50 million Baht

4th year : 10 million Baht

5th year : 1 million Baht

So as I see it the cover falls to 1 million in Aug 2012.

Here is the link to the Bank of Thailand where I took the information from http://www.bot.or.th/English/FinancialInst..._Insurance.aspx

I do not know about HSBC and your retirement visa - you may need to post on the visa section to find out. I would also consider Government bonds as another more secure means of investment which pay a higher yield than the fixed interest deposit accounts. There are also Government savings bonds which yield even higher but I am not sure if we qualfy for them.

I have heard the customer service is good at your bank - it would probably pay to have a chat with them to see if they can offer any advice.

Cheers BB

[xylophone]

Sheryl, like you, I am very disappointed with the interest rates available locally and am therefore looking at alternatives.

Fortunately, I was the Chief Manager of Investments in a large bank (outside of the US and relatively untouched by the sub-prime mortgage and credit crunch fiasco) prior to moving here, so I do have some contacts back home. In that regard I am investigating putting more of my funds into an account which I currently have, which pays 9.4% per annum and is AAA rated. Another pays 8.5% and is AA- rated...... my point is that sometimes it is better to invest in your own country, or one which is friendly and familiar, then transfer the minimum requirement over here when necessary.

Of course you have to keep on top of your finances to ensure that at least three months prior to applying for your retirement Visa, for example, you have transfered money into the appropriate account here in Thailand. However with the paltry interest rates available here, this is sometimes the better option.