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Foreign Currency Bank Accounts - Phuket


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Posted (edited)

A post in another thread got me interested in finding out about foreign currency accounts.

I went to Bangkok Bank in Phang-Nga road where I have held a Thai Baht account for many years.

The good news:-

They are a recent addition.

Not hard to open.

Twelve different currencies.

The bad news:-

Euro, US dollar and pounds sterling do not pay interest.

If your chosen currency does pay interest, there is a 15% withholding tax on it.

There is a 2% charge on all withdrawals.

If there is a foreign exchange fee, that comes on top of the 2%.

There is a 2% charge on all deposits unless you use TT.

Too expensive and greedy. I left.

Edited by KarenBravo
Posted

I am still a touch confused why you need an AUD account 'inside' Thailand ??

If I can wire currency from europe to Thailand and get it in my account same day isnt that fast enough ?? Plus you get all the upsides, interest, real bankers, deposit protections, no taxes, etc etc.

I am sure you have reasons, I just dont know what they are.

Posted (edited)

I am still a touch confused why you need an AUD account 'inside' Thailand ??

If I can wire currency from europe to Thailand and get it in my account same day isnt that fast enough ?? Plus you get all the upsides, interest, real bankers, deposit protections, no taxes, etc etc.

I am sure you have reasons, I just dont know what they are.

I get paid in various currencies. Usually, Sterling, US dollar, or Aussie dollar.

I have a US$ and sterling account in the UK, but, I need an Aussie dollar account, so that I'm not forced to change money earned in this currency.

If the scheme with Bangkok Bank was any good, I would have opened an account.

Seeing as it's total pants, I'll open an account with Westpac in Singapore, next time I go through.

Edited by KarenBravo
Posted

I am still a touch confused why you need an AUD account 'inside' Thailand ??

If I can wire currency from europe to Thailand and get it in my account same day isnt that fast enough ?? Plus you get all the upsides, interest, real bankers, deposit protections, no taxes, etc etc.

I am sure you have reasons, I just dont know what they are.

I get paid in various currencies. Usually, Sterling, US dollar, or Aussie dollar.

I have a US$ and sterling account in the UK, but, I need an Aussie dollar account, so that I'm not forced to change money earned in this currency.

If the scheme with Bangkok Bank was any good, I would have opened an account.

Seeing as it's total pants, I'll open an account with Westpac in Singapore, next time I go through.

Good idea best interest, currently all savings deposits guaranteed by the Australian Government

Posted

I am still a touch confused why you need an AUD account 'inside' Thailand ??

If I can wire currency from europe to Thailand and get it in my account same day isnt that fast enough ?? Plus you get all the upsides, interest, real bankers, deposit protections, no taxes, etc etc.

I am sure you have reasons, I just dont know what they are.

I get paid in various currencies. Usually, Sterling, US dollar, or Aussie dollar.

I have a US$ and sterling account in the UK, but, I need an Aussie dollar account, so that I'm not forced to change money earned in this currency.

If the scheme with Bangkok Bank was any good, I would have opened an account.

Seeing as it's total pants, I'll open an account with Westpac in Singapore, next time I go through.

Good idea best interest, currently all savings deposits guaranteed by the Australian Government

Even if not deposited in Oz ?? Westpac Sing would be under different incorporation no ??

Posted

Good idea best interest, currently all savings deposits guaranteed by the Australian Government

Even if not deposited in Oz ?? Westpac Sing would be under different incorporation no ??

If he is paid in Australia dollars, i do not see how he cannot open a account in Singapore with Westpac which is an Australian bank with branches in many country's Not Thailand

Is WP Singapore incorporated in Singapore or just a branch of the Australian bank, i am sure KB will check

I do not know and have no interest in opening a account there, if i was interested i would check

You are the financial expert not me, with your vast knowledge why ask the question you should know the answer to it

Posted

I dont know the answer thats why I asked.

I just find it surprising that the Oz government back up global Westpac AUD deposits ?? Usually those kind of Government deposit guarantees are for domestic deposits only, yet you seem to maintain thats not the case.

Of course he should have no problem opening the account tho.

Posted

I dont know the answer thats why I asked.

I just find it surprising that the Oz government back up global Westpac AUD deposits ?? Usually those kind of Government deposit guarantees are for domestic deposits only, yet you seem to maintain thats not the case.

Of course he should have no problem opening the account tho.

Just read LOS: "Is WP Singapore incorporated in Singapore or just a branch of the Australian bank, i am sure KB will check

I do not know and have no interest in opening a account there, if i was interested i would check"

Posted

I dont know the answer thats why I asked.

I just find it surprising that the Oz government back up global Westpac AUD deposits ?? Usually those kind of Government deposit guarantees are for domestic deposits only, yet you seem to maintain thats not the case.

Of course he should have no problem opening the account tho.

Just read LOS: "Is WP Singapore incorporated in Singapore or just a branch of the Australian bank, i am sure KB will check

I do not know and have no interest in opening a account there, if i was interested i would check"

Yeah sure looks like a backtrack from

Good idea best interest, currently all savings deposits guaranteed by the Australian Government

Which is the comment that surprised me.

Posted

I dont know the answer thats why I asked.

I just find it surprising that the Oz government back up global Westpac AUD deposits ?? Usually those kind of Government deposit guarantees are for domestic deposits only, yet you seem to maintain thats not the case.

Of course he should have no problem opening the account tho.

I would check the terms and conditions if i opened an account in Singapore with a Australian bank

If i was going to open a account with a Australian bank in Singapore one of the things i would check is if the funds were guaranteed by the Australian Government

If it is just a branch of a Australian bank and the funds are held in Australia i would make sure they are guaranteed by the government, if not i would not open a account

I am sure KB will do the same, He did check out a FCA here and gave accurate information on the web.

I do not maintain funds are covered i would check as any sensible person would do.

I said the Australian government guarantees saving funds in Australian banks if the branch in is owned and operated by Westpac it should be covered if the funds are held in Australia.

Don't misquote me

Posted

I am pretty sure that you need to have a working visa or PR status to open a bank account in Singapore.

Specialist offshore accounts such as those offered by by HSBC and Citibank are different but you need a large deposit to open an account with them. Not sure if Westpac offer similar.

Posted

I am pretty sure that you need to have a working visa or PR status to open a bank account in Singapore.

Quite correct, but, this applies to a Singapore dollar denominated account only.

Specialist offshore accounts such as those offered by by HSBC and Citibank are different but you need a large deposit to open an account with them. Not sure if Westpac offer similar.

Right again.

Posted (edited)

I am pretty sure that you need to have a working visa or PR status to open a bank account in Singapore.

Specialist offshore accounts such as those offered by by HSBC and Citibank are different but you need a large deposit to open an account with them. Not sure if Westpac offer similar.

Dont think so.. I opened them (tho that was the offshore kind you mention) but my brother wanted a simple basic account and didnt want to put large funds in, they gave him a current account and he has to pay a small fee every 1/4 for a mailbox rental where they keep his statements too IIRC, thereby giving him a singapore address but no PR or visa classification. Apologies but cant remember which bank it was.

I think he only needed 5k Sing or so to do that ?

Edited by LivinLOS
Posted

FCA with SCB using AUD.

They charge 2% on any amount transferred into the account, example 100000 AUD fee 2000 AUD

To transfer money back out of Thailand in AUD to another bank account fee .5%

Changing to Thai Baht no fee.

Interest between 2% and 3% on a AUD account.

The usual other conditions apply.

I would only open this type of account if it benefited me in a financial transaction.

By transferring money direct from my ABA to my TBA converted from AUD to TB by my Thai bank.

Thai banks give a lot better exchange rates when i last checked.and always have.

Fee of 30 AUD no matter how much money i transfer from my Australian bank

No fee by my Thai bank SCB.for receiving money

Exchange rate better than for travellers cheques with no fees.

Bank manager promises me best exchange rate available as long as i inform him before i do the transfer of funds.

He has done this before for me and keeps his word.

Only bummer is the interest on the account is only .5% but i wont be keeping it in the account for long so no problem.

Posted (edited)

Agree with LivinLOS .....why would anyone want to open a FCD account in Thailand with the excessive bank fees etc?

How would any "financial transaction" justify opening such an account.

I transfer money from HSBC Australia to Thailand usually within the hour and constantly get the current TT exchange rate.

Peter how do you get "no fee by my Thai bank SCB.for receiving money"

Most banks in Thailand (including SCB) charge for International tranfers at 0.25% with a minimum of 200 baht.

Maybe you just don't realise that this amount is deducted before it hits your account.

HSBC Australia only charges a maximum of 20 AUD for this type of transfer.

Sanuk

Edited by sanuk21
Posted

Agree with LivinLOS .....why would anyone want to open a FCD account in Thailand with the excessive bank fees etc?

How would any "financial transaction" justify opening such an account.

I transfer money from HSBC Australia to Thailand usually within the hour and constantly get the current TT exchange rate.

Peter how do you get "no fee by my Thai bank SCB.for receiving money"

Most banks in Thailand (including SCB) charge for International tranfers at 0.25% with a minimum of 200 baht.

Maybe you just don't realise that this amount is deducted before it hits your account.

HSBC Australia only charges a maximum of 20 AUD for this type of transfer.

Sanuk

The bank manager told me no fee if over a certain amount of money and i was not charged last time.

When purchasing a house if the price is right and its worth my while, the payment can be transferred to an overseas bank at time of settlement

The seller can be at the bank with you when you do the transfer of funds into there nominated account

Posted

When purchasing a house if the price is right and its worth my while, the payment can be transferred to an overseas bank at time of settlement

The seller can be at the bank with you when you do the transfer of funds into there nominated account

OK so getting a clearer picture of your needs. Your looking for a way, that safeguards both parties over the issue of trust, to arrange for the cash transaction to another farang (possibly / probably) Australian. It needs to make both parties feel secure.

Given that problem there may be other ways to solve it. Firstly I dont really think thats the ideal solution anyway, whats to stop the person (after you make the transfer instruction) not going and making the land transfer, having a problem somehow, or if in a different order after the land transfer there being some 'problem' with the bank transfer. Ideally both parties will be honest and all will run smooth but it doesnt elegantly solve the trust issue.

One thing to consider is the use of an Aus lawyer as an escrow service, fairly simple and standard I would think. Money is proven to be on deposit and when both parties are agreed money is released to the seller.

If you dont want to use a service like that you might be able to do something with your existing bank. A while back in my old life I used to have similar 'no trust' cash transactions and we used to use a system that was called a 'bar cheque' I have also heard them called cashiers cheques, bank cheques, and a couple of other names. This is a cheque you get from the bank and is 'cash like' basically the holder can cash it, or deposit it, no matter who it is that holds it (and suffers the same pain if its lost or destroyed). The cheque is issued from the bank itself and not you (the money is taken from your bank account when the cheque is issued, not when its cashed) and offers almost no risk to the seller.

Another variation is a certified check, which the bank certifies the money is in the account at the time the cheque is issued and usually puts some kind of lock on the money. Never used one of these myself.

Yet another way to skin this cat could be an 'irrevocable letter of credit' and in this case would be a instant payment one (other LC's sometimes have payment schedules). This is given by your bank and guarantees payment, but I think is rarely used in personal transactions and the little I have heard of these all related to achieving finance / funding for large projects.

All of the different payment papers could be inspected by the seller, verified to be authentic, taken to the land office and physically handed over at the moment of transaction.

Just a couple of suggestions in case they help.

Posted

I do not know how settlements are done here but i do know how the are done in Australia.

If or when i do purchase a house i will employ a good law firm

In Australia at settlement the sellers and buyers representatives are there.

The property has been checked by the buyers representative before hand to make sure there are no caveats etc against it

The freehold title deed is signed over to the purchaser and a bank cheque made out in the sellers name is handed over for the full amount of the purchase price

If banks are involved because of new or existing mortgages there representatives are there and it is a slightly different procedure.

Posted

If you dont want to use a service like that you might be able to do something with your existing bank. A while back in my old life I used to have similar 'no trust' cash transactions and we used to use a system that was called a 'bar cheque' I have also heard them called cashiers cheques, bank cheques, and a couple of other names. This is a cheque you get from the bank and is 'cash like' basically the holder can cash it, or deposit it, no matter who it is that holds it (and suffers the same pain if its lost or destroyed). The cheque is issued from the bank itself and not you (the money is taken from your bank account when the cheque is issued, not when its cashed) and offers almost no risk to the seller.

In Thailand, a name MUST be on the cashiers check. They do not have checks than can be cashed by just a bearer.

Posted

Yes but isnt he intending to do a Aus to Aus transfer outside of thailand ??

Hence its if Oz bankers do cashiers cheques or what other instrument they use for that purpose.

Posted

I do not know how settlements are done here but i do know how the are done in Australia.

If or when i do purchase a house i will employ a good law firm

In Australia at settlement the sellers and buyers representatives are there.

The property has been checked by the buyers representative before hand to make sure there are no caveats etc against it

The freehold title deed is signed over to the purchaser and a bank cheque made out in the sellers name is handed over for the full amount of the purchase price

If banks are involved because of new or existing mortgages there representatives are there and it is a slightly different procedure.

I would say thats ballpark how they are done everywhere.. Including here.

But the issue as I understood it was you wanted to avoid putting the money into THB and into a Thai lawyers escrow system, which would do the above for you. So was trying to find a way where both you and the seller can remain 'covered' without bringing the funds into THB / Thailand.

I also recall a BM put the money into escrow with the lawyer who then credited the seller and didnt get the deed transferred and the seller ran away with the purchase price, while the nice Thai lawyer said 'oops' !! Or something to that effect.

Posted

I do not know how settlements are done here but i do know how the are done in Australia.

If or when i do purchase a house i will employ a good law firm

In Australia at settlement the sellers and buyers representatives are there.

The property has been checked by the buyers representative before hand to make sure there are no caveats etc against it

The freehold title deed is signed over to the purchaser and a bank cheque made out in the sellers name is handed over for the full amount of the purchase price

If banks are involved because of new or existing mortgages there representatives are there and it is a slightly different procedure.

I would say thats ballpark how they are done everywhere.. Including here.

But the issue as I understood it was you wanted to avoid putting the money into THB and into a Thai lawyers escrow system, which would do the above for you. So was trying to find a way where both you and the seller can remain 'covered' without bringing the funds into THB / Thailand.

I also recall a BM put the money into escrow with the lawyer who then credited the seller and didnt get the deed transferred and the seller ran away with the purchase price, while the nice Thai lawyer said 'oops' !! Or something to that effect.

I don't really care if i pay in Thai baht or AUD, it makes no difference to me but may be important to the seller

I will be using a reputable law firm, not looking for a back yard cheapo.

If i am not happy with the way the property is being transferred into my name or the person/company i nominate no money will change hands.

I know about the fake title deeds here, everything will be checked out, i also know the different ways of purchasing a property.

I also know if i decide to build all documentation should be in my name not the builders.

You can always learn when you listen to other peoples advice no matter how much you think you know.

Unfortunately a lot of the so called good information i have been given in Thailand from mainly farangs is a load of CODSWALLOP (new word for b/s which is not a swear word)

Posted

I don't really care if i pay in Thai baht or AUD, it makes no difference to me but may be important to the seller

I will be using a reputable law firm, not looking for a back yard cheapo.

If i am not happy with the way the property is being transferred into my name or the person/company i nominate no money will change hands.

I know about the fake title deeds here, everything will be checked out, i also know the different ways of purchasing a property.

I also know if i decide to build all documentation should be in my name not the builders.

You can always learn when you listen to other peoples advice no matter how much you think you know.

Unfortunately a lot of the so called good information i have been given in Thailand from mainly farangs is a load of CODSWALLOP (new word for b/s which is not a swear word)

It was one of the large law companies operating on Phuket IIRC.. No appearance of it being a backyard cheapo. Just a case of them not doing what they were told with the money.

EDIT :: Found it.. International Law Office.. Sam Fauna.. Unlucky buyer was our Simon43 (and another poster).

Posted

I don't really care if i pay in Thai baht or AUD, it makes no difference to me but may be important to the seller

I will be using a reputable law firm, not looking for a back yard cheapo.

If i am not happy with the way the property is being transferred into my name or the person/company i nominate no money will change hands.

I know about the fake title deeds here, everything will be checked out, i also know the different ways of purchasing a property.

I also know if i decide to build all documentation should be in my name not the builders.

You can always learn when you listen to other peoples advice no matter how much you think you know.

Unfortunately a lot of the so called good information i have been given in Thailand from mainly farangs is a load of CODSWALLOP (new word for b/s which is not a swear word)

It was one of the large law companies operating on Phuket IIRC.. No appearance of it being a backyard cheapo. Just a case of them not doing what they were told with the money.

EDIT :: Found it.. International Law Office.. Sam Fauna.. Unlucky buyer was our Simon43 (and another poster).

http://www.thaivisa....here-in-phuket/

I can assure you though i do not see why its necessary, i will be checking out the law firms with people who have used them when the time comes

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