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Retirement Visa...Interest Rates On 800K Baht...Bangkok Bank


bucklt

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Retirement visa...interest rates on 800k baht...Bangkok Bank

Some of you - with retirement Visas and 800k baht deposited with the Bangkok Bank - may be

interested in something that happened to me yesterday whilst visiting my local branch at Kad

Suan Kaew.

I mention this now, as there does not appear to be any form of advertising in English (all

literature is in Thai) and in addition, there appears to be a cut-off date of July 27th.

Background: about 2 years ago, and in support of my annual retirement Visa requirements, I

opened a separate account for my 800k baht and was told that the interest rate would be

1.75% gross (this eventually gave me interest of c19,000 baht gross and c16,000 baht after

tax).

The interest rate dropped to 0.75% the following year (and I only became aware of it when I

up-dated my passbook some months ago).

Yesterday, whilst there on other matters, I was asked if I wanted to deposit my 800k baht

into a new type of account which pays 4.5% after 25 months. Large sums of money deposited

under this scheme, will earn:

if deposited for 6 months: 1% interest

if deposited for 12 months 1.5% interest

if deposited for 18 months 2% interest

if deposited for 24 months 2.25% interest

if deposited for 25 months 4.5% interest

Needless-to-say. I took them up on their offer and the whole process took about 20

minutes...bring passbooks and passport.Staff members who dealt with this were: Kea (female)

and Yonk (male).

note: I am aware that there may be banks out there who may offer a better deal etc, in which

case I say 'go for it', but I am more than happy to stay with this one as I find their

internet/currency exchange/credit-debit card services more than adequate for my needs here

in SE Asia. Hence the original comment: that this post may be more suitable for members who

feel similar to myself. Hope it's of use to some of you.

Bucklt

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under this scheme, will earn:

if deposited for 6 months: 1% interest

if deposited for 12 months 1.5% interest

if deposited for 18 months 2% interest

if deposited for 24 months 2.25% interest

if deposited for 25 months 4.5% interest

As I read the information on Bangkok Bank's home page what you actually receive is 1% interest for the first 6 months, 1.5% interest for the following 6 months, 2% interest for the next 6 months and so on. As far as I can calculate it ends up giving you on average 1.8% p.a. if you keep the money in the account for the full 25 months. I haven't checked the market, so I don't know how that compares with other fixed deposits on the market.

From Bangkok Banks homepage:

Up to 5.00% interest for Bangkok Bank’s Step Khao Klai deposit account

17 June 2010

Bangkok Bank is offering a special interest rate of up to 5.00% per annum for the ‘Step Khao Klai’ fixed deposit account. Customers can choose a fixed deposit term of either 25 or 37-months with Bangkok Bank paying interest every six months.

“Available until 27th July, the 25-month Step Khao Klai account offers an interest rate of up to 4.50% per annum, while the 37-month account offers an interest rate of up to 5.00% per annum,” said Bangkok Bank Executive Vice President, Ruchanee Nopmuang. “The bank will deposit interest into customers’ deposit accounts every six months and at the end of the account period. The minimum deposit is Bt 10,000,” continued Mrs. Ruchanee.

The 25-month Step Khao Klai fixed deposit account offers an interest rate of 1.00% for the first six months, 1.50% for the 7th-12th months, 2.00% for the 13th-18th months, 2.25% for the 19th-24th months and 4.50% for the 25th month. The 37-month Step Khao Klai fixed deposit account offers an interest rate of 1.00% for the first six months, 1.50% for the 7th-12th months, 2.00% for the 13th-18th months, 2.50% for the 19th-24th months, 2.75% for the 25th-30th months, 3.25% for the 31th-36th months and 5.00% per annum for the 37th month.

“Bangkok Bank’s Step Khao Klai deposit account is the latest savings option in addition to mutual funds, bonds and Bancassurance.. Furthermore, the Sinmathaya Subthawee fixed deposit account offers customers a tax waiver on interest and a monthly saving plan over at least two years,” said Mrs. Ruchanee.

“Interested customers can open a Step Khao Klai account or seek further information about Bangkok Bank’s saving and investment options at any Bangkok Bank branch nationwide. For further details or questions, call Bualuang Phone 1333 or go to www.bangkokbank.com,” Mrs. Ruchanee concluded.

Sophon

Edited by Sophon
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Sophon is right. It is not a bad account, but nothing like the OP suggests. The 4.5% applies only to the 25th month, not to all 25 months. It should be acceptable to immigration because you can withdraw the money at any time (although the bank will usually charge a penalty for this).

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1.75% gross (this eventually gave me interest of c19,000 baht gross and c16,000 baht after

apparently you can claim this tax back, this has been done by a number of expats in Pattaya.

Agree...and there's an excellent post somewhere (Thaivisa? or Expat-club forum/magazine?) on how to do this.

But, when I read about the actual procedures and paperwork involved...I decided to leave it.

Maybe I will do it in another year or so, and *assume* you can then make a 'collective' claim covering the previous 3 to 5 years etc. Might be worth the effort then. But for those with millions of bath, it's well worth the effort in claiming it back.

Bucklt

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You are lucky to get interest my bank here says sorry no interest paid to me. My money just sits there and depreciates. i figure its the up front cost to live here. I should change banks maybe huh. Mine is Krung Thai

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I got this offer recently, in the form of a small card in the post, from my local Bangkok Bank. I took them up on it,which required a new passbook and 25 forms to be filled in, as term deposits have always had been acceped by CM and Bangkok immigration although I know some will argue that this is not so but has never been a problem for me or others. The money can be withdrawn, whole or part, at any time but of course your relatively high interest rate is kapoot. If you feel that you can leave it alone its a good deal.

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In my case I received VIP treatment as two representatives came to my office in person to talk to me after calling me about it. My fixed accounts started at 3+ percent for 4 months (promotion) but as the world economic situation caught up it's very little now so this promotion beats what I'm getting now by quite a bit. I was skeptical due to it being a cold call but when they arrived I knew them both, one being my personal bank representative assigned to me.

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In my case I received VIP treatment as two representatives came to my office in person to talk to me after calling me about it. My fixed accounts started at 3+ percent for 4 months (promotion) but as the world economic situation caught up it's very little now so this promotion beats what I'm getting now by quite a bit. I was skeptical due to it being a cold call but when they arrived I knew them both, one being my personal bank representative assigned to me.

3% FOR 4 MONTHS ? Oh ,what a little mirage you got there ,but as long as your happy . :ph34r:

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3% FOR 4 MONTHS ? Oh ,what a little mirage you got there ,but as long as your happy . :ph34r:

Didn't say I was happy but beats the .75% or less previously. I haven't been happy about rates since I was getting 14% when I first came to Thailand. ;)

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The Bangkok Post publishes once a week a chart in the financial section (think it is Monday's edition) that shows the deposit rates for all the banks. Been following it and generally the best published rate is 2% for 24 months at Siam Commercial. Currently I'm drawing 2.5% but account comes due in January so plan on going from bank to bank to see what kind of deals can be had.

On the immigration issue we went in for renewal recently and took bank records. Due to a credit card withdrawal our operating account dropped just below 800K for a week or so in the last month, but they looked at fixed deposit account information and said no problem.

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Just makes no sense why people do the 800k vs the monthly deposits. That way you keep your money in a domestic account and don't have tooo worry about what to do with a lum sum over here. If for any reason you head back for an emergency, it is there where you are...

Don't Thai (humor) up large amounts over here unless you have money to burn...

CB

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Not all types of accounts are acceptible to immigration. Have you checked that this is?

Valid point!

Yonk (083-4777881)confirms it is acceptable by Immigration.

Bucklt

Well 'Yonk' is wrong! the money must be 'immediately' available and long term interest accounts are not acceptable and I had to close mine down - you may be lucky with someone at Immigration but I would never take the chance as it has to be in there for 3 months and 'available'.

This has been covered in other threads in the 'Finance' section - my advice is do not take the risk because 'Yonk' won't be the one standing there with no visa. So, to sum up, do ya feel lucky? I wouldn't do it and paid a penalty to close my account down and put into a deposit account - it would be like saying 'my condo is worth 1m so that covers the 800,000' - it doesn't because it is not available for 'instant' use which is what the 800,000 rule is there for.

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went BKK bank yesterday and was offered the same thing,although i thought it was 4.5% from day one until term ends.There's always a catch to thai term deposits,an interest difference of some 19000 baht doing it their way less 15% at the end of it,plus you are dealing with the aximoron called thai immigration that change the rules like we change money.Personally i would n't do it with my 800,000 baht,better to swallow hard and accept you are only going to get 0.75% but you will be sweet with immigration that like to see it in a savings account.You could bring over extra funds for the term deposit though.However i'd rather leave that money off shore earning 6% per annum from day one and only pay 10% interest.

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