1 Percent Interest

[basjke]

Hi I have a fixed deposit that expires in the coming days and as you all know future fixed deposits with all banks pay 1 percent minus the 15% government tax.I think I rather keep my money at home then give it to a bank for peanuts and risk things like bank go broke or something.Is anyone aware of some safe flexible investments in Thailand that pay at least a reasonable interest rate.

[skipvice]

some of us have to keep a fixed account to transfer our pension to Thailand

[chiangmaibruce]

Perhaps you might like to take a look at Fixed income mutual funds. There are more than 550 funds to choose from in this category. Start by looking at this site:

www.aimc.or.th/en/21_infostats_performance.php

then you can look at the web sites of specific fund managers of interest

[basjke]

Perhaps you might like to take a look at Fixed income mutual funds. There are more than 550 funds to choose from in this category. Start by looking at this site:

www.aimc.or.th/en/21_infostats_performance.php

then you can look at the web sites of specific fund managers of interest

Thanks for you reply Bruce but the site seems not to work for me.Anyway I have one of those funds at SCB,I think they are managed by bank of ayuthya,and they started good at around 3 pct annually but for the past 6 months they deliver also an annual 1 pct return.I think the fund is in government bonds.

[chiangmaibruce]

Thanks for you reply Bruce but the site seems not to work for me.Anyway I have one of those funds at SCB,I think they are managed by bank of ayuthya,and they started good at around 3 pct annually but for the past 6 months they deliver also an annual 1 pct return.I think the fund is in government bonds.

Keep trying on that site Bas, worked fine just then. The average return for the six months to 31 March 09, for all Thai fixed income funds, was just over 2% with a big range of returns b/w diff funds and fund managers. Av mgt fee of 0.8% per annum. Your other safe-ish alternative is to just buy bonds and side-step the mgt fee. They are also talking about removing the withholding tax on thai bonds by the end of the year.

[12DrinkMore]

Thanks for the suggestions.

Please keep them coming, as I have a chunk of money over here and would like to earn more than the rate I am currently getting with the bonds.

[changnaam]

I have just set up on this fund platform.......... deverefundplatform.com which has give me access to some wholesale banking products and I have invested some of my spare in a 15% Morgan Stanley note. Limited risk but for me I preceived the risk to be worth the reward.

[Penkoprod]

You didnt say where "home" for you is

The reason i say that is because in MY home country 1% less tax looks fairly attractive for that type of account !!!!

Mine is set at 0.5% less 20% tax

OK, its only there to get the money from my employer, then i can move it, but all the same................there may even come a time when the greedy twarts start CHARGING ME for the priviledge of keeping my cash

Penkoprod

[AlexLah]

There is a great fund with annual return around 12%

12 PM me for my bank account details

[12DrinkMore]

There is a great fund with annual return around 12%

12 PM me for my bank account details

Thanks, maybe I would be equally interested in helping any friends you have in Nigeria? :D

[teletiger]

12%...Haha. Profitable Plots mate. 280 % over 3 years. Profit.....er...I think. Must be...... right? Mind you.....never said which 3 years. Haha. All the footie people are into 'em. Can't wait. Might 'ave to though,.....right? Hahaha. Ahem.

Regards.

[AlexLah]

There is still a lot of peeps that fall for that 419 Nigerian scam. Have you not read lately that US nurse or something that lost a few hundred thousand $

Same like all thos Madoff clients, you just need a good story, guess I have to work on mine a bit before I can convince 12 to invest in my firm....

[basjke]

You didnt say where "home" for you is

The reason i say that is because in MY home country 1% less tax looks fairly attractive for that type of account !!!!

Mine is set at 0.5% less 20% tax

OK, its only there to get the money from my employer, then i can move it, but all the same................there may even come a time when the greedy twarts start CHARGING ME for the priviledge of keeping my cash

Penkoprod

I assume that if I put this post in a thailand related forum that anyone know my money is in thailand.With keeping it at home I meant keeping it under my pillow because I consider 1% minus government taxes as giving my money to the bank for free with even the risk to lose it in the current state of the bank business.All I try to achieve is an annual interest of about 3 % after taxes which I think must be at current times still possible with a safe investment if you are well informed.

[Gumballl]

I assume that if I put this post in a thailand related forum that anyone know my money is in thailand.With keeping it at home I meant keeping it under my pillow because I consider 1% minus government taxes as giving my money to the bank for free with even the risk to lose it in the current state of the bank business.All I try to achieve is an annual interest of about 3 % after taxes which I think must be at current times still possible with a safe investment if you are well informed.

Uh, yeah.... keep the money at home, thus earning no interest, and thus you do not need to deal with the gov't. Your house may burn down, or thieves may break in, but nevermind this because the likelihood of it occurring is less than the chance of a bank failing. And of course, your neighbours will happily repay you in cash should anything happen to your stash... similar to what a bank or thai gov't would do if the bank is robbed or fails.

So feel free to stuff your pillow cases with cash.

If you do not require your money to be in Thailand (unlike foreign retirees who need evidence of funds), then move it out to another country. The interest rate paid is always going to be commensurate with the risk associated with the investment device; thus it will be low for regular savings, a tad bit higher for fixed-term deposits, and even higher (or maybe less than 0!) if you risk it in the markets.

Banks offers its customers the peace of mind that their savings are safe, that the funds are accessible when needed, and that they can in some circumstances be used as collateral to borrow additional funds. All of these benefits cost money, and since a bank has the intent to remain profitable, it will likely charge a handsome interest rate for the loans it provides, and pay a puny interest rate for those who have savings. Get used to this fact.

Edited April 25, 2009 by Gumballl

[FlorC]

I'm in exactly the same position you are.

Last year bought SCB and Bangkok Bank funds investing in Korean gov bonds, up to 4,35% /year. They are ending now, sadly !

I have the SFF gov bond fundbook at SCB , and it is now around 1,2 %.

Bangkok Bank has a similar one.

Unless you're willing to take riscs , there is not much else to do.

I have asked the Bank why I can't buy Thai gov bonds, that don't stop at 6 or 12 months, and give around 3,5%, and they tell me I can't . Don't understand why.

I guess the global resession hits us too.

But with al the money I save on low fuel prices , it doesn't bother me that much, for now...

Why do I have Thai Baht in the bank? For my visa! Luckily bought most of then while the rate was good, nearly 50 B/Euro.

So now no need to check forex.

Edited April 26, 2009 by FlorC

[egg6447]

if you're a brit, over 50yrs. u can earn up to 12% and down depending on age..i'm talking a immediate vesting pension. source telegragh. 14 jan 2009. its deeper than this so source it yourself. so the 12% joke earlier was near the truth.

[chiangmaibruce]

I have asked the Bank why I can't buy Thai gov bonds, that don't stop at 6 or 12 months, and give around 3,5%, and they tell me I can't . Don't understand why.

I don't understand why either ... which bank told you that? Suspect it might be along the lines of the "you need a work permit to open a bank account" nonsense that some bank staff come out with

I put the question to several financial institutions and here were the first two responses:

SCB: "With reference to your email regarding to invest Bond, Debentures and Bill of Exchange , we would like to inform you that for foreign customer who want to do investment with our bank and affiliate they are able to do investment as Thai customer."

Asian Development Bank: "There are no restrictions on non-residents investing in bond market instruments in Thailand."

[FlorC]

I have asked the Bank why I can't buy Thai gov bonds, that don't stop at 6 or 12 months, and give around 3,5%, and they tell me I can't . Don't understand why.

I don't understand why either ... which bank told you that? Suspect it might be along the lines of the "you need a work permit to open a bank account" nonsense that some bank staff come out with

I put the question to several financial institutions and here were the first two responses:

SCB: "With reference to your email regarding to invest Bond, Debentures and Bill of Exchange , we would like to inform you that for foreign customer who want to do investment with our bank and affiliate they are able to do investment as Thai customer."

Asian Development Bank: "There are no restrictions on non-residents investing in bond market instruments in Thailand."

I asked the 4 banks where I have an account, BGK bank, Kasikorn, SCB and Ayudhya.

Most of them just want to push one of their funds with life insurance, which I don't want.

My Thai is limited, so is their English. I get vague and avoiding answers.

These government bonds now give around 3 % and according to one of them , you need

a safe because that kind of bonds are materially delivred.

In oct or sept last year there was a promotion at BGK bank for a special account, but

only for Thai or farang with WP. The woman was a little pissed at me for wasting time

filling in all the forms and then noticing I didn't have a WP.