Bangkok Bank

[ianguygil]

FYI - the Bank of Thailand (central bank) sets the max.APR which banks may charage for c/card balances.

In some other South East Asian countries the APR is comparable to that of Thailand. If the local banks made more effective use of credit bureau scorecards they may be able to charge a lower the APR for better quality customers, as has happened in more developed economies (what's referred to as risk-adjusted pricing).

Data I reviewed 2 years ago for a major Thai department store credit card showed delinquency (based on account which are more than 30 days past due) then running at 5%.

It is true that the credit card business can be very profitable to banks who under this business well and have strong data analystics capabilities.

The higher risk customers, such as those on smaller incomes, tend to have more revolving card balances (i.e., they just pay the min. mthly payment each month), but these are generally the most profitable customer segment for banks. The min. income of 15,000 baht p/mth is also regulated by the BOT.

It is also much more difficult to collect in Thailand if a card account "goes bad". Which affects the losses written off.

I would note in Philip's post how high interest rates are in the UK. I hope that "Typical 57.8% APR (variable)" must be a typo, but I have seen 30% and higher in the UK. In the US they are also very high at certain banks, although in all developed markets it is possible to find a lower rate and special offers to transfer balances etc.

In Thailand the central bank also closely limits who can get a credit card. They establish the minimum income levels, not just the banks.

So it is a different market in many ways. And people should never simply compare their home country and complain why it does not apply in Thailand (I am absolutely not saying you are doing that, just pointing out that it is different here)

[jfchandler]

Those, unfortunately, are the folks who are really getting soaked.... Destined for a lifetime of debt...

The higher risk customers, such as those on smaller incomes, tend to have more revolving card balances (i.e., they just pay the min. mthly payment each month), but these are generally the most profitable customer segment for banks. The min. income of 15,000 baht p/mth is also regulated by the BOT.

[jfchandler]

Lots of excuses and rationalizations, Ian....

It clearly IS different here... no market competition, no choices for Thai consumers, and higher rates. That certainly is different.

You know what Thai banks pay for their money. And you know the interest rates they are charging... That's the comparison I was making...

And, do you call 15,000 baht monthly income "closely limits" who can get a credit card???

I guess my main point in all of this is:

Wouldn't Thai consumers, and the country in general, benefit from an open marketplace and competition for banking services???

Bankers are supposed to like capitalism, right?? Free markets, free trade? Except, I guess, when their own monopoly is involved...

In Thailand the central bank also closely limits who can get a credit card. They establish the minimum income levels, not just the banks.

So it is a different market in many ways. And people should never simply compare their home country and complain why it does not apply in Thailand (I am absolutely not saying you are doing that, just pointing out that it is different here)

Edited September 16, 2010 by jfchandler

[pkrv]

WOW, PKRV.... that's an interesting card... and it seems you're paying dearly for its privileges....

275 pounds UK per year fee??? And for the life of me, I can't figure their APR explanation....

John - I may have made a mistake with my comment and may have been mixing up i24 and Nationwide. I think i24 is still OK as a credit card. To be honest you go into boots in Thailand and if you pay by credit card you get asked if you wish to pay in THB (and get a really crap conversion rate) or your local currency - we still pay by i24 in GBP. My mistake the options are just becoming bewildering.

Yes my i24 card which is a secondary card to me does cost 275 GBP per year but with the 1% cash back I err end up in credit, they end up paying me, not I paying them.

And yes I have used the lounge facilities via priority pass - I flew on a hop between Bangkok and Tokyo via one of those funny colonial airlines United, if memory serves. As I am not particularly an active member of this airline (it is star alliance, yes I did have a BMI card) I just flew economy - The lounge was welcome.

And yes they do give you the market FX rate - don't forget I have only really got my BBL account working correctly quite recently - but still had to furnish a Thai pad (no pun intended, ok I lie) out in Bangkok, The card has served me well.

However all things change at a bewildering rate.

Edited September 16, 2010 by pkrv

[JimGant]

To be honest you go into boots in Thailand and if you pay by credit card you get asked if you wish to pay in THB (and get a really crap conversion rate) or your local currency - we still pay by i24 in GBP. My mistake the options are just becoming bewildering.

That's a function of Boots, not your credit card. And invariably you should choose the local currency, not your home currency. Many discussions on this forum about this rip-off, called Dynamic Currency Conversion. Here's a quote from Flyerguide:

When you are paying by Visa or Mastercard, some merchants will offer to convert your transaction into your home currency ("'Dynamic Currency Conversion'"). If this offered, you should decline it, as an exorbitant exchange rate of 7% may be charged [2]. Always check your receipt, and if you see anything involving your home currency in a country that doesn't use that currency, ask the merchant to re-do the transaction in the local currency.

[jfchandler]

Thanks for your reply, PKRV... But you missed on this one below???

Do you even know???

Some people may think they're actually charging you 57% APR interest on balances... I suspect NOT.

And for the life of me, I can't figure their APR explanation....

Typical 57.8% APR (variable)

And then...

The APR in the agreement will be 22.0% APR. None of this changes the actual interest rate that applies to your Barclaycard i24 card, which is 13.9% for purchases.

Can you translate that into American English???

[pkrv]

To be honest you go into boots in Thailand and if you pay by credit card you get asked if you wish to pay in THB (and get a really crap conversion rate) or your local currency - we still pay by i24 in GBP. My mistake the options are just becoming bewildering.

That's a function of Boots, not your credit card. And invariably you should choose the local currency, not your home currency. Many discussions on this forum about this rip-off, called Dynamic Currency Conversion. Here's a quote from Flyerguide:

When you are paying by Visa or Mastercard, some merchants will offer to convert your transaction into your home currency ("'Dynamic Currency Conversion'"). If this offered, you should decline it, as an exorbitant exchange rate of 7% may be charged [2]. Always check your receipt, and if you see anything involving your home currency in a country that doesn't use that currency, ask the merchant to re-do the transaction in the local currency.

Ohh god i got that wrong I must be a bit tired - yes you pay in the local currency THB - god do I feel stupid. The i24 rate just happens to be a good rate for the GBPTHB conversion

[JimGant]

I never use a debit card when traveling. Not because of the charges. I use a credit card and pay it off every month in full.

Ian, best advice yet on this thread. Also from Flyerguide:

When making a point-of-sale purchase, it is usually better to use a credit card than a debit card, since if your card is stolen you can easily dispute the charges on a credit card and simply switch to using another credit card for the duration of your trip, while a stolen debit card may lead to an overdrawn bank account requiring many additional hassles. With a debit card, you have to fight with the bank to return money that is fraudulently withdrawn from your bank account.

I'm even leery of my Be1st ATM/Debit card usage in Thailand, and use it only in the ATM mode (having instructed Bangkok Bank to authorize zero amount in the POS mode). It's just so much easier to use my US credit card -- and have my US bank account automatically debited for the full amount due every month. Kinda like having a debit card, with a month or more of float (worth about $.02, with what my checking account pays these days). I guess if you're a credit junky, this might be questionable... However, that's a subject for the health forum.

[jfchandler]

Plus Jim, if you happen to be an existing Schwab credit card holder from the U.S., you're paying no foreign currency fees and getting 2% real cashback on all your purchases, deposited directly to your account monthly.

[JimGant]

if you happen to be an existing Schwab credit card holder from the U.S., you're paying no foreign currency fees and getting 2% real cashback

Now, that I'd be interested in....

But, I guess, "existing" is the operative word.

[jfchandler]

Jim, of course I used the word intentionally.

Schwab closed out that card program to new enrollments earlier this spring... But as I had mentioned previously, has kept the 2% benefit intact for existing cardholders, at least thus far...

[ianguygil]

Just a quick note on the market here. I am not going to directly address the babbling about a lack of competition. I have better things to do.

Many of the largest issuers in Thailand are foreign banks, especially on the high end market. Nobody living here can fail to see the Citi credit card ads and specials everywhere. Also HSBC. Not to mention UOB (Singapore), Standard Chartered (UK), TMB (Netherlands) etc. Then there are the new entrants like CIMB from Malaysia. I met with MICROSOFT at All Seasons last night and there is an RMB bank there (also Malaysian). GE Capital was the largest credit card issuer in Thailand until recently when BAY took over GE Money (actually GE took part of BAY in return for transferring the cards).

May recent studies show huge competition in the Thai market and a market reaching saturation for those eligible to receive credit cards.

The regulators were concerned at the growth of this form of unsecured credit a few years ago, which is why they introduced the minimum income requirement. Until then the market was growing very fast at the low end and the indicators were interpreted as becoming a potential bubble. Given the disaster in consumer finance in the US and UK, their intervention seems pretty smart.

I have several studies that I can not post due to copyright, but this seems to be a public report, even though it is a few years old.

http://www.vrl-finan...owing-in-t.aspx

Enjoy!

Edited September 16, 2010 by ianguygil

[jfchandler]

Ian, it doesn't matter how many players are sitting at the table, if they're all playing with the same cards...

Uniform interest rates, uniform fees, no innovation of alternative kinds of accounts...

When (apparently) every Thai bank/credit card provider is only offering cards that charge exactly 20% APR interest, please explain to me how that is any kind of competition?

You always seem to trot out claims about foreign corporate presence in the banking sector here.. Well, I've never said anything about who's owning the banks or credit card issuers here....or what countries are involved.

Just because there may be multinational equity players involved doesn't mean the marketplace has any real competition if everyone has the same rates, same fees, etc....

It looks like the report you cited pretty much tells the story, my story:

Changes in the interest rate, fees and service charges must be approved by Bank of Thailand. Companies advertising rates the central bank considers to be ‘unrealistic’ will be censured.

Ohh.... is BKK Bank giving away clocks or jackets again??? Is that your idea of competition???

Edited September 16, 2010 by jfchandler

[pkrv]

Thanks for your reply, PKRV... But you missed on this one below???

Do you even know???

Some people may think they're actually charging you 57% APR interest on balances... I suspect NOT.

And for the life of me, I can't figure their APR explanation....

Typical 57.8% APR (variable)

And then...

The APR in the agreement will be 22.0% APR. None of this changes the actual interest rate that applies to your Barclaycard i24 card, which is 13.9% for purchases.

Can you translate that into American English???

Yes I did see the comments from both you and Ian, I have had a nap so hopefully will not make another stupid mistake.

It is an old card and indeed has moved between companies. It may no longer even be possible to apply for it, I am not sure.

However that fee has no relevance to me. I circumvent the dire consequences of all bills, by paying them off.

Thai credit cards are sort of on my list, but maybe later.

To be honest next on my list and completely off topic is a multi entry Non immigration visa OA and O (I think) -Anyone who looks up The Parks sales of even the cheapest properties (oh and we have one of the cheapest) realises we have assets bought outright with overseas funds - With our Thai and UK resources we sort of exceed Thai requirements, and I'm pretty sure I don't have Elephantiasis plus the other stuff. But these days assets have moved on they are no longer always liquid.

So preparing for the next hurdle.

Edited September 16, 2010 by pkrv

[lopburi3]

Am with John on this one - banks will quickly change policy if they see abuse and are not hesitant in dropping customers when it suites there agenda. Just as you, working for the bank making the money on this ridiculous 150 baht per transaction fee, advise people to pay it and let the other bank take the hit rather than seek a solution where there is no hit for either end.

[jfchandler]

So, to recap, what do we know so far about Thai banking (based on my review of the web site info of the majors like BKKB, SCB, BAY, Kasikorn). If there are others that are exceptions, I'd be happy to be corrected:

--Thai banks all charge the same 150 baht fee on foreign card ATM withdrawals.

--Thai banks charge the same "up to 2.5%" foreign surcharge rate when their own debit cards are used for cash or purchases outside Thailand.

--Thai banks charge the same 100 baht per transaction fee when their debit cards are used to withdraw cash outside Thailand.

--Thai banks charge the same 100 and 200 baht fees for the issuance and annual renewal of their debit cards.

--Thai banks charge the same 20% interest rate (APR) on revolving credit card balances.

I wonder, how much further the uniformity goes???

Ohh...but John...with Bank A, our credit card earns discounts at the Mariiott hotels.... but with Bank B, you get vouchers for the Central Stores... Ain't competition grand!!!

[ianguygil]

John

Thank you for such a candid example of why you are such a biased hack, and failed as a journalist

Ohh.... is BKK Bank giving away clocks or jackets again??? Is that your idea of competition???

While there is nothing wrong with small promotions like clocks, and jackets, the article in question clearly states the following as examples of our promotions:

"Bangkok Bank offered one condominium unit each month from December 2006 to March 2007 to boost cardholder spending in the first quarter with its Perfect Life with Bangkok Bank campaign. Other rewards include gold bars and chains, Toyota and Nissan cars, and restaurant discounts."

and

"Bangkok Bank launched a high-profile Bualang Thank You rewards programme; it has an emphasis on the gifts that cardholders are able to redeem using points earned from card usage."

But clearly actually reading the article in question and quoting from it would not be consistent with your biased and small minded campaign. You don't post to inform other members of this forum. You just vent your bitterness towards everybody and every organization you see as being against you.

Enjoy your ranting. I barely even read your posts. I just saw this last line of one of your rants and clearly had to respond.

Now back to the real world.

Edited September 17, 2010 by ianguygil

[jfchandler]

Brick-a-brack and no-odds giveaways maybe be "competition" for you, Ian...

And you're reaching back to a three-year-old short-lived promotion, for which the odds of winning probably were miniscule....to make your case???

If you were a real banker, you'd be focusing on the same things other serious financial people do: it's the bottom lines that matter... APRs, interest rates, fees, real value provided...

Obviously, there's little or no real competition on those items... So you're left throwing out personal insults and not much more...

Edited September 17, 2010 by jfchandler

[jfchandler]

Ian, now in a calmer mood, I have a serious proposal to make on something I've been thinking a lot about lately, and I'd like you to give it some serious consideration.

In my view, people ought to be able to exchange ideas, disagree over facts and opinions, and even put forward strongly held views -- without resorting to personal jibes and attacks. They really don't serve any purpose...and don't contribute to anyone's understanding of issues related to banking...

So #1. From this point forward, I'm going to refrain from engaging in any name-calling here, period. I'm still going to argue my case, raise issues and respond to posts I think are wrong or ill-advised. But I'm not going to make it personal, and I regret having made it so at times in recent posts as things got overheated.... I'd encourage you to consider a similar tack.

#2. I think we can agree to disagree on some things, without verbally beating each other.. You apparently view Thailand's banking market as having competition, by virtue of the multitude players, including non Thais, and a range of marketing and other differences among the accounts. I view Thailand's banking market as being non-competitive by virtue of the uniformity of available rates and fees among the various providers. Why don't we just agree to disagree about that???

This is a public forum. You have a right to be here. So do I.. Why don't we jointly endeavor to conduct ourselves in a bit more professional manner, for the good of everyone??? And have our disagreements over banking matters in a bit more civilized fashion.... That;s my commitment from this point forward.

[MaiThaiMai]

I have the Bangkok Bank NY ACH transaction set-up with Wells Fargo (and Bof A) after WF receives my monthly transfer for Retirement Extension Purposes -- $3.00 transfer fee for 3 business days -

Can you give me an idea how you get off so cheap with a "$3.00 transfer fee for 3 business days"? I just signed a wire transfer agreement with Wells for a one-time lump sum wiring of $5,000 for $30 then a reoccurring agreement at $25 per monthly wire (up to $2,000)...

I wonder why they are soaking me what amounts to almost 10 times as much per wire... ?

Do I need a BofA bank account (out of the question for me) *AND* Wells Fargo to do same-same "$3.00 transfer fee for 3 business days"??

Does one end up with more or less baht if Wells Fargo buys the baht and they wire baht or is it better to have USD wired to LOS bank then let the Thai bank convert to baht? Does one way or the other produce more baht at the end of the wire or is it roughly same-same baht amount based on TT rates at the time of wire?

...or ?

MaiThaiMai

:jap:

Edited September 18, 2010 by MaiThaiMai

[jfchandler]

MTM, what Jazzbo is doing, I presume, is not traditional wire transfers, but rather, online ACH transfers from his U.S. bank account to the New York branch of Bangkok Bank, which has its own U.S. ABA number, also called a routing number. That allows people with U.S. accounts to link to it via their online banking setups with their U.S. banks.

BofA (I can't speak for Wells) charges its regular customers $3 per domestic ACH that they can initiate thru BofA online banking. They also have a next day service for $10... When you send the ACH using BKK Bank's New York branch routing number as the destination, you use the Thailand account number of your Bangkok Bank account. Then, the New York branch automatically forwards it onward to your local BKK Bank branch in Thailand.

For providing this service, the New York branch charges a sliding scale of fees based on the amount you send, ranging from free for smaller amounts to $10 for very large amounts, and the Thailand end of BKK Bank charges a 0.25% fee transaction fee, minimum 200 baht and maximum 500 baht. The whole process normally just takes a day or two.

I'd assume your Wells account allows you to send online ACH transfers to other U.S. banks, and to link them via Wells online banking. You do the same exact process with BKK Bank's New York branch. Typically, your bank will verify the external link via two small trial deposits, which will be put into your BKK Bank account. So you'd then need to call BKK Bank's main customer service number, and get them to tell you the amounts deposited in U.S. currency, so you can enter those amounts back into your Wells online banking setup to verify the link.

All of this assumes you have a BKK Bank account in Thailand. If you don't, and you want to continue sending money in this fashion, you should get one. These kinds of transfers are invariably going to be less expensive than traditional wire transfers, unless your U.S. bank is one of very few that offers free international wire transfers. And unfortunately, BKK Bank may well be the only Thai bank that has this kind of setup available, where a U.S. person can use a low-cost ACH to send funds to Thailand.

As to your last question, it's ALWAYS going to be to your benefit to send funds from the U.S. denominated in U.S. $, and not have the U.S. bank do the conversion to baht. You'll invariably get a better exchange rate by letting the receiving bank on the Thai end do the conversion. PS - With the BKK Bank ACH, there's no issue about that, since your home bank would only be sending the ACH in U.S. $.

The BKK Bank ACH method has been widely discussed and described in banking threads here on TV, including this one. The process works well.

Edited September 18, 2010 by jfchandler

[MaiThaiMai]

MTM, what Jazzbo is doing, I presume, is not traditional wire transfers, but rather, online ACH transfers from his U.S. bank account to the New York branch of Bangkok Bank, which has its own U.S. ABA number, also called a routing number. That allows people with U.S. accounts to link to it via their online banking setups with their U.S. banks.

BofA (I can't speak for Wells) charges its regular customers $3 per domestic ACH that they can initiate thru BofA online banking. They also have a next day service for $10... When you send the ACH using BKK Bank's New York branch routing number as the destination, you use the Thailand account number of your Bangkok Bank account. Then, the New York branch automatically forwards it onward to your local BKK Bank branch in Thailand.

For providing this service, the New York branch charges a sliding scale of fees based on the amount you send, ranging from free for smaller amounts to $10 for very large amounts, and the Thailand end of BKK Bank charges a 0.25% fee transaction fee, minimum 200 baht and maximum 500 baht. The whole process normally just takes a day or two.

I'd assume your Wells account allows you to send online ACH transfers to other U.S. banks, and to link them via Wells online banking. You do the same exact process with BKK Bank's New York branch. Typically, your bank will verify the external link via two small trial deposits, which will be put into your BKK Bank account. So you'd then need to call BKK Bank's main customer service number, and get them to tell you the amounts deposited in U.S. currency, so you can enter those amounts back into your Wells online banking setup to verify the link.

All of this assumes you have a BKK Bank account in Thailand. If you don't, and you want to continue sending money in this fashion, you should get one. These kinds of transfers are invariably going to be less expensive than traditional wire transfers, unless your U.S. bank is one of very few that offers free international wire transfers. And unfortunately, BKK Bank may well be the only Thai bank that has this kind of setup available, where a U.S. person can use a low-cost ACH to send funds to Thailand.

As to your last question, it's ALWAYS going to be to your benefit to send funds from the U.S. denominated in U.S. $, and not have the U.S. bank do the conversion to baht. You'll invariably get a better exchange rate by letting the receiving bank on the Thai end do the conversion. PS - With the BKK Bank ACH, there's no issue about that, since your home bank would only be sending the ACH in U.S. $.

The BKK Bank ACH method has been widely discussed and described in banking threads here on TV, including this one. The process works well.

Thanks for the detailed info. I actually e-mailed another member [Lefty who has replied for whatever reason] that had a post right above Jazzbo that was claimed a straight Wells-to-LOS transfer of funds without detail, but at this point I feel lucky I have been able to get the wire transfer agreement because I have no Thai account currently where this agreement is allowing me to submit that info AFTER I open a Kasikorn account upon arrival to which WF fees are nominal compared to the other options especially Western Union that wants $215 to wire $5,000 when my bank will send me USD same-same for $30.

Last trip a year and half ago I considered getting a Thai account but was still unsure on retirement or timeframe which in a way almost cost me dearly but then again the length of time of inactivity a Thai account probably would have been closed anyway costing me whatever was in it....this way still adds up to $300 a year (months rent for the frugal) but I'll have to research and keep on top of how to get my money without enriching greedy banks any thanks again more than I have to...

US Treasury checks whether SocSec or "other" cannot be directly deposited in Thai banks as I am told by our government...are they correct or is there a Thai bank where direct deposit is possible of a US Treasury check? Wells recently offered a different corporate bank-to-bank online transfer service but it was limited to U.S, a few close allies (as in borderline close) and its territories but Thai banks were not considered a good enough ally apparently.

If you have a suggestion or link on how I can save a good-sized chunk of that $300 every year I'd love to hear about it ...?

Thanks again...

MaiThaiMai

:jap:

[lopburi3]

As said above the talk was about using ACH domestic US transfer to the Bangkok Bank New York which in turn forwards to local account by the account number.

Fees:

Your home Bank ACH transfer fee (if any)

Bangkok Bank NY fee (for 5k 4,990 will be forwarded) $10

Bangkok Bank local fee of .25% in range 200-500 baht 383

So actual cost of 5k transfer with no home bank fee would be $10 removed at Bangkok Bank NY plus 383 baht removed from account balance at Bangkok Bank Thailand (as of 10 September 2010 transfer)

[jfchandler]

MTM, the BBK Bank New York route is one of the better options for moving larger amounts of funds from the U.S. to Thailand. You should open a BKK Bank account, if you intend to continue moving funds.....unless you want to end up wasting a lot of money.

Also, it's no problem to set up that arrangement once you're already in Thailand. Once in LOS, just open your BKK Bank account, and then use that account number and the BKK Bank NY ABA number to create a link in your Wells Fargo online banking module.

However, if you really can't or won't do that for some reason, there is another option:

--keep your funds in a U.S. account, and use your U.S. bank debit card to withdraw them from ATMs in Thailand. But you really have to be careful about that to not get reamed. 1. You need a U.S. bank account that doesn't charge foreign currency fees like Capital One or Charles Schwab, among others. And 2. You'd be better off using only AEON ATMs in Thailand if they're accessible to you, because they don't charge Thai banks' 150 baht foreign card ATM withdrawal fee. Also, ATM machines typically will only dispense 25,000 baht or so per withdrawal, and most U.S. accounts have daily withdrawal limits as well.

Another reason to open is BKK Bank account is, they do have established procedures that would allow you (and others) to have both U.S. Social Security and other pension type monthly payments direct deposited into your BKK Bank account. The advice you're apparently getting from others about that not being possible was wrong.

If you've got a recurring monthly payment to transfer, I'm pretty sure BKK Bank would be more than happy to open and maintain a Thai bank account for you. The do have some requirements for foreigners wanting to open accounts, and I believe there's a link to their bank web page explaining those requirements at the beginning of this thread.

Even for a relatively modest fee of $25 a month to do monthly wire transfers, you're going to be wasting a lot of money if you continue in that direction with traditional wire transfers. You really can do much better, if you learn a bit more about your banking options.

Edited September 18, 2010 by jfchandler

[mania]

Last trip a year and half ago I considered getting a Thai account but was still unsure on retirement or timeframe which in a way almost cost me dearly but then again the length of time of inactivity a Thai account probably would have been closed anyway costing me whatever was in it...

Excuse me for asking but, Is this something you know is fact or just something you thought?

The reason I ask is I leave my accounts in Thailand unused for over a year at times & never had any problems.

So I wondered if it was some new regulation you know of.

Thank You for any info

Edited September 18, 2010 by mania

[ianguygil]

Last trip a year and half ago I considered getting a Thai account but was still unsure on retirement or timeframe which in a way almost cost me dearly but then again the length of time of inactivity a Thai account probably would have been closed anyway costing me whatever was in it...

Excuse me for asking but, Is this something you know is fact or just something you thought?

The reason I ask is I leave my accounts in Thailand unused for over a year at times & never had any problems.

So I wondered if it was some new regulation you know of.

Thank You for any info

Thai accounts are closed when dormant for several years, not 1 or 2. I can ask the business side on Monday to get the exact number of years. But it is a long time. You just need to use it every time you visit. The funds are not taken. They are given to the government after a long time.

There are few charges for accounts, most charges are for activity (inter province transfer, foreign ATM etc.). I think none for inactivity (I am 99% sure but I will check this). So I would not worry.

Ian

Edited September 18, 2010 by ianguygil

[mania]

Thai accounts are closed when dormant for several years, not 1 or 2. I can ask the business side on Monday to get the exact number of years. But it is a long time. You just need to use it every time you visit. The funds are not taken. They are given to the government after a long time.

There are few charges for accounts, most charges are for activity (inter province transfer, foreign ATM etc.). I think none for inactivity (I am 99% sure but I will check this). So I would not worry.

Ian

Thanks for that Ian !

Good to know. One other thing I wondered is if I am transferring monies into the account during the year from the USA

or even from another Thai bank...

That would qualify as activity wouldn't it?

Thank you for your help & it is very nice to have an actual Bangkok Bank voice on this forum.

[jfchandler]

Interesting editorial in The Nation today about the discussions between the Bank of Thailand and Thai banks over reducing some banking fees, mostly for inside Thailand fund transfers (though absolutely no mention of anything relating to the 150 baht foreign cards ATM withdrawal fee).

The editorial includes the following item:

The Bank of Thailand has estimated that reducing this fee charge will cut into banks' profits by about Bt100 million a year. This amount is insignificant when we take into account the banks' bottom lines. In the first half of this year, the commercial banking system posted profits of Bt60-Bt70 billion.

The entire article is online here on ThaiVisa here.... It's well worth reading for anyone interested in Thai banking.... Considering that the BOT regulates and effectively sets fees and rates in many cases, you could argue that they're as much responsible for the current circumstances as the banks.

[ianguygil]

Thai accounts are closed when dormant for several years, not 1 or 2. I can ask the business side on Monday to get the exact number of years. But it is a long time. You just need to use it every time you visit. The funds are not taken. They are given to the government after a long time.

There are few charges for accounts, most charges are for activity (inter province transfer, foreign ATM etc.). I think none for inactivity (I am 99% sure but I will check this). So I would not worry.

Ian

Thanks for that Ian !

Good to know. One other thing I wondered is if I am transferring monies into the account during the year from the USA

or even from another Thai bank...

That would qualify as activity wouldn't it?

Thank you for your help & it is very nice to have an actual Bangkok Bank voice on this forum.

Yes, a deposit definitely rates as "activity". Our favorite type of activity !

[MaiThaiMai]

MTM, the BBK Bank New York route is one of the better options for moving larger amounts of funds from the U.S. to Thailand. You should open a BKK Bank account, if you intend to continue moving funds.....unless you want to end up wasting a lot of money.

Also, it's no problem to set up that arrangement once you're already in Thailand. Once in LOS, just open your BKK Bank account, and then use that account number and the BKK Bank NY ABA number to create a link in your Wells Fargo online banking module.

However, if you really can't or won't do that for some reason, there is another option:

--keep your funds in a U.S. account, and use your U.S. bank debit card to withdraw them from ATMs in Thailand. But you really have to be careful about that to not get reamed. 1. You need a U.S. bank account that doesn't charge foreign currency fees like Capital One or Charles Schwab, among others. And 2. You'd be better off using only AEON ATMs in Thailand if they're accessible to you, because they don't charge Thai banks' 150 baht foreign card ATM withdrawal fee. Also, ATM machines typically will only dispense 25,000 baht or so per withdrawal, and most U.S. accounts have daily withdrawal limits as well.

Another reason to open is BKK Bank account is, they do have established procedures that would allow you (and others) to have both U.S. Social Security and other pension type monthly payments direct deposited into your BKK Bank account. The advice you're apparently getting from others about that not being possible was wrong.

If you've got a recurring monthly payment to transfer, I'm pretty sure BKK Bank would be more than happy to open and maintain a Thai bank account for you. The do have some requirements for foreigners wanting to open accounts, and I believe there's a link to their bank web page explaining those requirements at the beginning of this thread.

Even for a relatively modest fee of $25 a month to do monthly wire transfers, you're going to be wasting a lot of money if you continue in that direction with traditional wire transfers. You really can do much better, if you learn a bit more about your banking options.

Thanks gotta run just replying to say I'll definately check into the same setup as your input and top of thread