george Posted August 9, 2005 Share Posted August 9, 2005 Major commercial banks begin to raise deposit rates BANGKOK: -- Major commercial banks have begun to increase medium- and long-term deposit rates, showing liquidity in the system has eased, according to the Bank of Thailand (BOT). The BOT’s Deputy Governor in charge of the Financial Institutions Stability,Tarisa Watanagase, said yesterday that the interest hike was part of the banks’ efforts to peg long-term costs and evidence that most believed interest rates are on the rise. She said the liquidity had begun to ease, noting although the decrease was relatively small, it had pushed up the interest rates, which would benefit depositors and boost saving in the system. The interest rise is in response to the BOT’s projection that the interest rates offered by local commercial banks would continue to rise. 'Whether the interest rates will increase rapidly and significantly or not depends on the liquidity of each bank. It is beyond the central bank’s ability to anticipate," she said. A source said Siam Commercial Bank Plc yesterday raised its 24-month and 36-month deposit rates by 25 basis points to 2% and 3%, effective yesterday. --TNA 2005-08-09 Link to comment Share on other sites More sharing options...
Firefan Posted August 9, 2005 Share Posted August 9, 2005 Does foreigners get interest at all at the different banks? I do not recall seeing any on my BKK Bank savings account. I believe somebody mentioned other banks that DO pay interest to foreigners? How do they handle taxes on interest then (especially if no work permit and therefore no tax registration). Does anybody have experience with the various time deposits? Can Foreigners (without w. Permit) buy those? Any other ideas to get cash to work for a foreigner here (money market account/short bond funds?) that you know of are appreciated. Cheers! Link to comment Share on other sites More sharing options...
Thetyim Posted August 9, 2005 Share Posted August 9, 2005 I opened an account with Ayudhya Bank with just a passport. This also gives me online access to use AJF Funds. https://www.ajffunds.com Link to comment Share on other sites More sharing options...
Kringle Posted August 9, 2005 Share Posted August 9, 2005 Not sure but I thought I just heard on Channel 11 that all Thai banks will not insure deposits on any funds over 1 million baht. Is this true? What happens if another 97 happens and the country crashes? Doesn't make me interested in keeping my money in the banks here or even have a direct deposit here. Link to comment Share on other sites More sharing options...
monsieurhappy Posted August 10, 2005 Share Posted August 10, 2005 Hi, I have a savings acc. with Bangkok Bank and get interest twice a year - June & Dec. Not sure rate of interest though. I'm here on retirement visa so I don't pay any tax. In my passbook it doesn't show any tax deducted, only int. received. Link to comment Share on other sites More sharing options...
Heng Posted August 10, 2005 Share Posted August 10, 2005 (edited) Not sure but I thought I just heard on Channel 11 that all Thai banks will not insure deposits on any funds over 1 million baht. Is this true? What happens if another 97 happens and the country crashes? Doesn't make me interested in keeping my money in the banks here or even have a direct deposit here. Back in '97 we had funds in all kinds of banks on their way under (Bangkok Metropolitan Bank, Bangkok City Bank, Laem Thong Bank, etc.). Didn't lose a single satang. Even had funds in the Bangkok Bank of Commerce. No losses. Although there's no official FDIC type coverage in place, the gov't has never let any bank fail with losses to deposit holders... shareholder losses, absolutely. Edited August 10, 2005 by Heng Link to comment Share on other sites More sharing options...
Sir Burr Posted August 10, 2005 Share Posted August 10, 2005 A few years ago, there was a scandal with regard to interest payments on bank deposits. Thais were getting around 3% whilst foreigners at the same banks were only receiving 0.75%. All banks were discriminating against foreigners. The only exception was Bank of Asia which at the time was owned by the Dutch bank ABN. Needless to say, a mob of farang shut-down their existing bank accounts and opened one with Bank of Asia. I think this was country wide and not just in Phuket. Presently unsure if this discrimination is still going on. Link to comment Share on other sites More sharing options...
Firefan Posted August 10, 2005 Share Posted August 10, 2005 According to their homepage we still get ZERO while others get 0.75% on their savings account. Mr. Happy must be lucky that his account is listed as a Thai national I guess. I will check out Ayudhya Bank and Asia Bank. Cheers! Link to comment Share on other sites More sharing options...
Eric Davis Posted August 10, 2005 Share Posted August 10, 2005 I have 98 Baht in my Thai bank account and I am fearing the loss of this should another 97 appen. Link to comment Share on other sites More sharing options...
Firefan Posted August 10, 2005 Share Posted August 10, 2005 Eric! Pull them out NOW and I will pay an additional 2 Baht to you and you will have enough for 4 hours of happy hour drinking at Cathouse! Link to comment Share on other sites More sharing options...
lingling Posted August 10, 2005 Share Posted August 10, 2005 The only exception was Bank of Asia which at the time was owned by the Dutch bank ABN.<{POST_SNAPBACK}> That was back then. I have done all my local banking (personal and corporate) with BoA but I will switch now. My company has a decent amount of THB stashed in our BoA THB savings account. I went in to BoA's head office on Sathorn a couple of days ago and inquired into opening a USD FCD account since the majority of my company's income is in USD. The nice clerk informed me that although my company is a Thai Co Ltd with a majority of the shares owned by Thai nationals, she could not open a USD account because the managing director is a "non resident foreign national". I replied that although I am a foreign national I am a resident and my visa status should have no impact in the ability for my company (as a Co Ltd engaged in export of services) to open a FCD account. She then went on to tell me that this is a Bank of Thailand regulation. I asked for a copy of the specific regulation. She gave me a copy of the general BOT rules for FCD accounts where it is spelt out that both me and my company would be eligible to open such an account. Next week I will send my accountant out on a tour of other banks to see what bank we are going to switch to. (She already went to KTB today and they would have no problem taking our business, including FCD etc) Link to comment Share on other sites More sharing options...
cclub75 Posted August 11, 2005 Share Posted August 11, 2005 She then went on to tell me that this is a Bank of Thailand regulation. <{POST_SNAPBACK}> Ah, ah "the" famous point. We experienced also this one, with Bangkok Bank, in our shitty branch in north BKK, for other issues. "It's like that, it's BOT regulation". Blablabla. So, same as you, we walked away with our big account.... And went in business finally with... Thai Military Bank ! I have to say that they are not the most "glamorous", I agree, nor the most "modern" (no internet banking) ;-) but for a company who cares ? They were polite and ultra proactive. Link to comment Share on other sites More sharing options...
Tywais Posted August 11, 2005 Share Posted August 11, 2005 According to their homepage we still get ZERO while others get 0.75% on their savings account. Mr. Happy must be lucky that his account is listed as a Thai national I guess.I will check out Ayudhya Bank and Asia Bank. Cheers! I also am with Bangkok Bank and my passbook shows INT in June and December and I am not a Thai national. Link to comment Share on other sites More sharing options...
charles Posted August 11, 2005 Share Posted August 11, 2005 According to their homepage we still get ZERO while others get 0.75% on their savings account. Mr. Happy must be lucky that his account is listed as a Thai national I guess.I will check out Ayudhya Bank and Asia Bank. Cheers! <{POST_SNAPBACK}> I also am with Bangkok Bank and my passbook shows INT in June and December and I am not a Thai national. <{POST_SNAPBACK}> Same here. Have an account at Emporium branch where the interest rate board on the wall clearly states 0% for "non-residents" but passbook updates show interest paid. TIT! Link to comment Share on other sites More sharing options...
Firefan Posted August 11, 2005 Share Posted August 11, 2005 He, he - I will have to check as I rarely update my bank book but I have not seen any interest on it. I guess you get the 0.75% then - still better than nothing (keeping up a bit with inflation) and also a matter of principle. Heren is the BKK Bank homepage with the rates: http://www.bangkokbank.com/Bangkok+Bank/Pe...erest+Rates.htm I guess it depends how one interpretate the "non-resident". Cheers! Link to comment Share on other sites More sharing options...
IMA_FARANG Posted August 11, 2005 Share Posted August 11, 2005 (edited) Does foreigners get interest at all at the different banks? I do not recall seeing any on my BKK Bank savings account. I believe somebody mentioned other banks that DO pay interest to foreigners?How do they handle taxes on interest then (especially if no work permit and therefore no tax registration). Does anybody have experience with the various time deposits? Can Foreigners (without w. Permit) buy those? Any other ideas to get cash to work for a foreigner here (money market account/short bond funds?) that you know of are appreciated. Cheers! <{POST_SNAPBACK}> This is probably not what you wanted but here is some info. At least 20 years ago I opened a JOINT savings account with Bangkok Bank. Account was intended so I could transfer money from U.S. to Thai Girlfriend and family in Bankok for their monthly rent/expenses. Yes, I do recieve interest, usually twice a year. Interest rate is extremely low. I opened account with only passport. This acount was opened about 1983. Can't recall exact date. So it is possible to have interest earning account for Farang in Thailand, at least if it is joint account with Thai. Note: for all you skeptics who are smirking knowingly about the idea of a joint account with a Thai girlfriend: it was the best thing I ever did with my money and Thai girlfriend. She was quite happy to spend MY MONEY, but once it became joint money or OUR MONEY, her natural caution about spending money kicked in. She was quite happy to spend someone else's money, but didn't want to spend any part of her (our) money unless she had to. Edited August 11, 2005 by IMA_FARANG Link to comment Share on other sites More sharing options...
Rickman Posted August 28, 2005 Share Posted August 28, 2005 According to their homepage we still get ZERO while others get 0.75% on their savings account. Mr. Happy must be lucky that his account is listed as a Thai national I guess.I will check out Ayudhya Bank and Asia Bank. Cheers! <{POST_SNAPBACK}> I also am with Bangkok Bank and my passbook shows INT in June and December and I am not a Thai national. <{POST_SNAPBACK}> Same here. Have an account at Emporium branch where the interest rate board on the wall clearly states 0% for "non-residents" but passbook updates show interest paid. TIT! <{POST_SNAPBACK}> I also have had an account with Bangkok Bank Emporium branch for 3 years and my passbook clearly shows interest paid 1/2 yearly with tax also paid half yearly. Interest is significantly more than the tax. Is everyone taxed? Link to comment Share on other sites More sharing options...
trigz Posted August 29, 2005 Share Posted August 29, 2005 I also have had an account with Bangkok Bank Emporium branch for 3 years and my passbook clearly shows interest paid 1/2 yearly with tax also paid half yearly. Interest is significantly more than the tax. Is everyone taxed? <{POST_SNAPBACK}> Similarly, I have had a savings passbook account with Krung Thai Bank for 6 years and always have been paid interest 1/2 yearly with tax deducted at the same time....they show up as two seperate entries; first the credit of the interest and then the debit of the tax. Link to comment Share on other sites More sharing options...
Scott Posted August 29, 2005 Share Posted August 29, 2005 Some years back, I opened an account with Bangkok Bank. My local bank couldn't accept overseas transfers of money and since I would be working out of the country for a time and needed to have expenses etc. paid, I opened the account. In the mid-90's, I returned and took the money out of BKK Bank and put it in my regular account. I did leave a small sum of a few thousand baht and then forgot about it. While digging through some old papers, I found the passbook and took it in to see if I could get the money. It took them a long time to calculate the interest over all those years (I assume at variable rates). It came up to around 5,000 Baht in interest. Hope I find some more lost passbooks! Link to comment Share on other sites More sharing options...
Phil Clark Posted August 29, 2005 Share Posted August 29, 2005 Interest income is taxed at 15% and is deducted at source by the bank. I currently get 1% gross interest, 0.85% net on a Fixed Deposit account with Siam Commercial. Link to comment Share on other sites More sharing options...
Firefan Posted August 29, 2005 Share Posted August 29, 2005 The link I gave earlier clearly says 0 % interest for foreign accounts in BKK Bank - but that might not be the same as saving accounts for foreigners" (TIT) as I finally got my lazy butt down to update my savings account book and lo and behold - received 1500 B in (happy hour!) interest! That corresponds to about 0.75%. Cheers! Link to comment Share on other sites More sharing options...
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