Best Place To Park Cash

[chiang mai]

Just to add, on the point of insured deposits:

In Thailand ex pat deposits in resident accounts are covered by the bank guarantees, non-resident accounts are not insured, ditto Hong Kong and presumably Singapore also.

incorrect assumption. Singapore garanties all deposits. the guarantee -if not renewed- expires october 19th, 2010

Thanks for the clarification.

[how241]

I don't see the increased risk is worth a slightly higher return. I don't feel it is properly balanced : The much higher risk with off-shore accounts vs. the slightly higher return. Maybe, I'm misunderstanding something. Would be the first time.

[marc69]

Just to add, on the point of insured deposits:

In Thailand ex pat deposits in resident accounts are covered by the bank guarantees, non-resident accounts are not insured, ditto Hong Kong and presumably Singapore also.

incorrect assumption. Singapore garanties all deposits. the guarantee -if not renewed- expires october 19th, 2010

Thanks for the clarification.

And thanks for the information on non-resident accounts in Thailand. I thought all deposits were insured. I do have some money in K-bank but I guess chances of them going in bankruptcy are pretty slim.

[PattayaParent]

I don't see the increased risk is worth a slightly higher return. I don't feel it is properly balanced : The much higher risk with off-shore accounts vs. the slightly higher return. Maybe, I'm misunderstanding something. Would be the first time.

Why are you assuming there's an increased risk offshore vs. onshore?

Surely if a bank goes bankrupt it's whole operation goes bankrupt so you lose your money in your perceived 'safer' onshore account also.

And to eliminate the risk you just put the maximum of 50k in the account and open up accounts in several different banking groups to put your other 50ks into as well.

[how241]

If your money is in a US bank, it has FDIC government insurance up to 250,000 USD. No one has ever lost any money with a FDIC insured bank. Most US banks are FDIC insured. If the bank fails, the FDIC finds another bank to take over. It has happened several times lately to me and I've not lost a penny and most times everything stay the same. Same debit cards and checks. Only the name changes.

[flying]

If your money is in a US bank, it has FDIC government insurance up to 250,000 USD. No one has ever lost any money with a FDIC insured bank. Most US banks are FDIC insured. If the bank fails, the FDIC finds another bank to take over. It has happened several times lately to me and I've not lost a penny and most times everything stay the same. Same debit cards and checks. Only the name changes.

True about 150 last year & about 16 so far this year. Main branches that is....

Yes as long as all hold the faith it is no big deal for the FDIC to transfer digits to another computer.

It is only if that faith starts to crumble & folks actually want their physical dollars that the system will falter.

Chair Elizabeth Warren of the TARP Congressional Oversight Panel just released a video saying 2988 more small to medium banks could fail if the commercial real estate bubble causes the problem many foresaw.

But again it is just paper & digits on a computer isn't it? Not like they cannot continue to create a infinite amount of it for what is lost. Because although as you say you just see it is in another banks & your life continues...same...same

There was a loss & the FDIC took up the slack.

Yet eventually what will those diluted dollars buy?........Less

Edited February 19, 2010 by flying

[how241]

You make some interesting if not scary points. Well said.

[woodwork]

For the record this matter was settled a while back by ICICI in a most understanding and generous manner. All earlier criticism of ICICI is now wthdrawn.

[aurelius]

Just to add, on the point of insured deposits:

In Thailand ex pat deposits in resident accounts are covered by the bank guarantees, non-resident accounts are not insured, ditto Hong Kong and presumably Singapore also.

incorrect assumption. Singapore garanties all deposits. the guarantee -if not renewed- expires october 19th, 2010

Thanks for the clarification.

And thanks for the information on non-resident accounts in Thailand. I thought all deposits were insured. I do have some money in K-bank but I guess chances of them going in bankruptcy are pretty slim.

Be careful with the definition/understanding of "non resident" above. It does not have the same meaning as one's visa status. Most of us on work permits and retirement visa's will have resident accounts - a non-resident account (NRBA) is usually only opened by someone needing Bank of Thailand declarations on their investments in Thailand. The accounts are very cumbersome to operate such as not having electronic transactions, no atm cards etc - this is due to the requirement to report the purpose of all transactions on the account to the BOT. Therefore -

the regular run-of-the-mill bank account is in fact a "resident" account (even if held by non-residents!).

[how241]

Thank you for explaining the "resident" account " . I think many with money in Thai banks will rest easier now. Thanks

[Naam]

Be careful with the definition/understanding of "non resident" above. It does not have the same meaning as one's visa status. Most of us on work permits and retirement visa's will have resident accounts - a non-resident account (NRBA) is usually only opened by someone needing Bank of Thailand declarations on their investments in Thailand. The accounts are very cumbersome to operate such as not having electronic transactions, no atm cards etc - this is due to the requirement to report the purpose of all transactions on the account to the BOT. Therefore -

the regular run-of-the-mill bank account is in fact a "resident" account (even if held by non-residents!).

thanks Aurelius! excellent and interesting information.

[Naam]

I don't see the increased risk is worth a slightly higher return. I don't feel it is properly balanced : The much higher risk with off-shore accounts vs. the slightly higher return. Maybe, I'm misunderstanding something. Would be the first time.

your assumption that offshore accounts carry a higher risk is a misconception. of course nobody is interested to have his/her money in an offshore account with an unknown bank located on the Christmas Islands, the highlands of Papua New Guinea or North Korea. when talk is about "offshore" then generally the subsidiaries of multinational banks and also domestic banks in various locations -where guarantees exist- are meant.

[how241]

Yes, point taken, but even the biggest banks have failed recently. My point was that without some government backing, what protection do you really have? Of course, I understand that with government protection comes government "eyes".

[Naam]

Yes, point taken, but even the biggest banks have failed recently. My point was that without some government backing, what protection do you really have? Of course, I understand that with government protection comes government "eyes".

government protection exists virtually in all major financial centers and (except Iceland) i don't know of any big bank failure where depositors lost any money. unfortunately for American citizens... they are the only ones which have to fear their government's eyes if they have assets offshore because the Greatest Nation on Earth™ can pressure nowadays nearly any country to reveal the financial status of her citizens. the country where the government's eyes are all over is the U.S. of A.; not Singapore, Hong Kong or the Channel Islands et al.

[how241]

Your points are vaid. I think many people prefer off-shore banking to avoid the government "eyes" . Your right that the USA gets involved in things that are not so important and misses the BIG points many times.

[chiang mai]

Thank you for explaining the "resident" account " . I think many with money in Thai banks will rest easier now. Thanks

I have two non-resident accounts in Thailand (not by my design I might add), both have ATM cards and both use electronic transactions (transfers/payments) - one of those accounts is with HSBC and the other is with BB and I'm in the process of converting one of them currently. The major difference between resident and non-resident accounts from my perspective is that my NR account will not accept Baht deposits, only foreign currency, in all other respects they appear the same.

[chiang mai]

My apologies for posting my response to the resident/non-resident account issue where I did but I'm having problems with the reply function this morning for some reason. Anyway, I believe that the answer given on this subject is only partially correct.

As explained above the main difference between the two account types from a customers is the inability to deposit Baht into a non-resident account - retirement visa holders for example are not allowed to work in Thailand hence they are not expected to have Thai Baht income and are required to import their funds from overseas thus there is some logic to it all - eight years ago the standard account type issued to HSBC ex pat customers in Thailand was non-resident and that was how I got mine. The issue of insurance coverage only came to light quite recently as a result of bank indemnities et al.

Edited February 20, 2010 by chiang mai

[marc69]

Be careful with the definition/understanding of "non resident" above. It does not have the same meaning as one's visa status. Most of us on work permits and retirement visa's will have resident accounts - a non-resident account (NRBA) is usually only opened by someone needing Bank of Thailand declarations on their investments in Thailand. The accounts are very cumbersome to operate such as not having electronic transactions, no atm cards etc - this is due to the requirement to report the purpose of all transactions on the account to the BOT. Therefore -

the regular run-of-the-mill bank account is in fact a "resident" account (even if held by non-residents!).

Thanks for the information. I opened my saving account in K-bank while I was staying in BKK with a Non-B visa. I have an ATM card and I can deposit baht and transfer money from Europe to my account. Given your explanation it should be then covered by bank guarantees.

[markeewan]

You didn't say how much money you wanted to "park", but like any investment don't put all your eggs in one basket. Spread it around.

Australian banks are giving a good return on deposit accounts, but it may be difficult for you to set up an account. The Perth Mint is an available option for non residents who have a 1-2 year timeframe. Not more than 5-10% though. Look at the 5 year price increase in gold, with all the money printing going on then I don't see this changing in the near future.

Personally I like people to deposit money with the banks so then I can borrow it and put it to good use, but I have no respect for bankers and their ridiculous bonuses.

[woodwork]

get quotes from ICICI Bank Singapore Branch... good rates, slightly higher than other places..

good service and smart... ICICI is listed in the NYSE..

Word of caution re icici Singapore branch;

http://www.thaivisa.com/forum/Difficulties...ga-t165197.html

For the record this matter was settled a while back by ICICI in a most understanding and extremely generous manner.

This bank is nothing but wonderful

All earlier criticism of ICICI is now wthdrawn