Kasikorn Step-Up Fixed Deposit 14 Months

[GreenSnapper]

Kasikorn offers a 14-months fixed deposit account with the following step up interest rates:

Step-up Fixed Deposit 14 Months

Deposits from Baht 0.01 million and above Fixed Deposit Term

1-3 1.25 1.25

4-6 1.75 1.75

7-9 2.50 2.50

10-12 3.50 3.50

13-14 4.50 4.50

Has somebody opened it recently and what happens if you withdraw money before maturity?

My idea is to have minimum 800K on this account to be usable for extension of stay at immigration, but possibly use up some amount before maturity. A good idea or not?

(I could just go and ask my Kasikorn branch, but then you are never sure about the answers you get....)

[Tafia]

Bangkok are offering a similar account, received via email today.

Step Up & Save! Bangkok Bank is offering a new 15-month Step Plus Fixed Deposit Account with

a tiered interest rate up to a maximum of 4.50 percent per annum. Interest is paid 6-monthly;

the minimum deposit is 10,000Bt.

This offer is available for Thais and all foreigners (except non-immigrant L–A visa holders), at

Bangkok Bank branches until 16 March, 2011. Visit a branch near you today.

1-6 - 1.75%

7-12 - 2.25%

13-15 - 4.5%

Edited March 4, 2011 by Tafia

[el jefe]

Assuming they have similar rules, the Bangkok Bank offer is almost identical over the term of the deposit. There's about a 0.03% difference. I asked about some of the details at my local Bangkok Bank branch in CM yesterday.

I was told that if I withdraw the funds before the 15 months are up, I forfeit all interest and only get my principal back.

It's my understanding that for visa purposes you cannot have your 800k locked up in a time-deposit type of account. The 800k must be readily available. You should check that at Immigration or ask on the Visa sub-forum as I'm here on a visa that does not require and funds in Thailand.

[thailoneus]

Very tempting. But contrary to all the assurances that the Banks gave me, I chose to go ask Immigration (Phuket). The answer was definitely NO. The retirement visa funds must be in a Savings a/c. It would be great if someone sets a precedent and the Fixed deposit is allowable for Retirement extensions.

[CWMcMurray]

I do not know if this type of account can be used for Immigration purposes but if just for savings, they are not a bad deal. Especially if you want some place to put that portion of your saving that you want to leave liquid "just in case" but that you really do not plan on using unless the

I have similar account with TMB and you can split up in "parts", but only use one account book. So you can break it up into 50,000k chunks (or more or less) so that if you have to pull out some, then you do not loose the higher interest on the rest of the money.

[Phuket Stan]

Very tempting. But contrary to all the assurances that the Banks gave me, I chose to go ask Immigration (Phuket). The answer was definitely NO. The retirement visa funds must be in a Savings a/c. It would be great if someone sets a precedent and the Fixed deposit is allowable for Retirement extensions.

I renewed my retirement visa at Phuket two months ago with funds in a term deposit....another change of rules ?? Did u actually ask Thai officials or the faring volunteer police ??

[janverbeem]

Very tempting. But contrary to all the assurances that the Banks gave me, I chose to go ask Immigration (Phuket). The answer was definitely NO. The retirement visa funds must be in a Savings a/c. It would be great if someone sets a precedent and the Fixed deposit is allowable for Retirement extensions.

I renewed my retirement visa at Phuket two months ago with funds in a term deposit....another change of rules ?? Did u actually ask Thai officials or the faring volunteer police ??

I think fixed interest time deposits are allowed for retirement visa because the principal amount is readily available at any time.

Accounts linked to a market fund are not accepted though.

[thailoneus]

Phuket Stan,

I talked to the Thai officer at the back extreme left about this. However, I can't be certain whether he understood me or didn't want to understand. Simply said "those are the rules, I cannot change". I referred to a "fixed" account. I don't think they relate to "term" deposit terminology.

Very tempting. But contrary to all the assurances that the Banks gave me, I chose to go ask Immigration (Phuket). The answer was definitely NO. The retirement visa funds must be in a Savings a/c. It would be great if someone sets a precedent and the Fixed deposit is allowable for Retirement extensions.

I renewed my retirement visa at Phuket two months ago with funds in a term deposit....another change of rules ?? Did u actually ask Thai officials or the faring volunteer police ??

I think fixed interest time deposits are allowed for retirement visa because the principal amount is readily available at any time.

Accounts linked to a market fund are not accepted though.

Edited March 5, 2011 by thailoneus

[Sophon]

Assuming they have similar rules, the Bangkok Bank offer is almost identical over the term of the deposit. There's about a 0.03% difference. I asked about some of the details at my local Bangkok Bank branch in CM yesterday.

I was told that if I withdraw the funds before the 15 months are up, I forfeit all interest and only get my principal back.

I think what you were told was only partially true. From bangkokbank.com:

Penalties apply for early withdrawal:

- If making a withdrawal prior to maturity, a depositor will be required to withdraw the

whole deposit amount.

- If a depositor withdraws money within three months of account opening, the bank will not

pay any interest on the deposit.

- If a depositor withdraws the deposit after three months, but before it matures, the bank

will pay the same interest rate as that on a savings account.

So if you withdraw the funds after more than three months you do get some interest.

And I don't think Kasikorn has the same rules. If withdrawing early it sounds like you get the "interest rate step" you have reached at the time of withdrawing the funds:

Get a guaranteed minimum interest rate of 1.25% p.a. upon maturity (based on the actual deposit period)

But it sounds like the OP is planning to do a partial withdrawal of some of the funds and leave the rest until maturity, which I'm not sure is possible. I think that if withdrawing from the account you will have to withdraw the full amount (as it is clearly spelled out in the rules for the Bangkok Bank product). So, as suggested by another poster, it might be a good idea to split the deposit into more than one account.

Sophon

[janverbeem]

Phuket Stan,

I talked to the Thai officer at the back extreme left about this. However, I can't be certain whether he understood me or didn't want to understand. Simply said "those are the rules, I cannot change". I referred to a "fixed" account. I don't think they relate to "term" deposit terminology.

Very tempting. But contrary to all the assurances that the Banks gave me, I chose to go ask Immigration (Phuket). The answer was definitely NO. The retirement visa funds must be in a Savings a/c. It would be great if someone sets a precedent and the Fixed deposit is allowable for Retirement extensions.

I renewed my retirement visa at Phuket two months ago with funds in a term deposit....another change of rules ?? Did u actually ask Thai officials or the faring volunteer police ??

I think fixed interest time deposits are allowed for retirement visa because the principal amount is readily available at any time.

Accounts linked to a market fund are not accepted though.

I'm getting confused between the names fixed and term used here but 2 years ago I used for my extention an K-bank account which paid a fixed interest at a fixed date,I think that particular account paid interest after 13 months.You are able to withdraw the money at anytime but you will loose all the interest.So what is the name of this type of account.

[aurelius]

"Fixed" in Thailand applies to anything not "on call" - i.e. not savings or current (checking) accounts - its not related to when the interest is paid. The word "term" deposit tends to be a kiwi/ozzie terminology, whereas the US uses "CD" and the UK seems to refer to "fixed term".

Regarding the O visa requirements - I think that a fixed deposit can be used - at the end of the day the funds are available at short notice because the contract can be broken - fact is that there is a penalty incurred in accessing them - which disadvantages the account holder, but is not of any consequence to the immigration office.

[phutoie2]

Bangkok are offering a similar account, received via email today.

Step Up & Save! Bangkok Bank is offering a new 15-month Step Plus Fixed Deposit Account with

a tiered interest rate up to a maximum of 4.50 percent per annum. Interest is paid 6-monthly;

the minimum deposit is 10,000Bt.

This offer is available for Thais and all foreigners (except non-immigrant L–A visa holders), at

Bangkok Bank branches until 16 March, 2011. Visit a branch near you today.

1-6 - 1.75%

7-12 - 2.25%

13-15 - 4.5%

Yes my local BKB tried to get me to change from my savings account (orange book) to this 'step plus'.

I asked the bank staff if it was an account that can be used for annual extension at the Immigration office, after I had to explain what that was all about!.

Anyway they could not really give a definate answer.

My extension is due in July, so does anyone know if you can use this account??, for showing you have the 800k etc.

[Darrel]

Regarding the O visa requirements - I think that a fixed deposit can be used - at the end of the day the funds are available at short notice because the contract can be broken - fact is that there is a penalty incurred in accessing them - which disadvantages the account holder, but is not of any consequence to the immigration office.

Precisely. Assuming that the Immigration Officer understands the nature of the deposit it is clearly valid for this purpose as the money is immediately available. But it is the Officer who has to understand this. AFAIK in Jomtien they do understand it.

Either way I will be doing this very soon. If Immigration dont allow the deposit I will just withdraw it and put it in a savings account, and too bad for the lost interest.

[how241]

I was told at Kasikorn and also Siam that these types of accounts CAN be used to do the 800,000 baht reporting....Because the money is available to be withdrawn at anytime....Of course, this is Thailand and every time you talk to someone you get a different answer. Good Luck...

[tode66]

Kasikorn Bank is now offering 7.5% for 12-13 months

[John 1]

Kasakorn will not be offering 7.5% for 12/13 months, it might be step ed to that amount averaging 3.75%.

[Darrel]

AER 3.827%

http://www.kasikornbank.com/EN/PromotionPrivileges/Pages/KDeposit_23062011.aspx

Not bad, and (for visa purposes) withdrawals are permitted at any time.

[12DrinkMore]

AER 3.827%

http://www.kasikornb...t_23062011.aspx

Not bad, and (for visa purposes) withdrawals are permitted at any time.

Still reckon the BKK Bank 3.5% fixed for five months is the way to go. Interest rates are heading up thanks to the Bank of Thailand taking their remit of containing inflation seriously, unlike Ben and Merv.

[Darrel]

The Kbank appears to have most of the advantages of a regular savings account in that you can withdraw at any time and still get the basic interest rate that applies to the period up to when you withdraw. So somewhere between 2% and 7.5%.

Interest is paid out to a regular Kbank account at the end of each tranche.

What isn't clear is whether or not you can make a partial withdrawal and leave the rest in the account without penalty. I will go in and ask them today.

I agree that on paper the 3.5% 5-month account is better, but it's a pain having to switch banks in the first place, and also to have to think about accounts every 5 months.

There's enough to do wondering whether European banks will still be trading in 5 months' time.

[GreenSnapper]

The Kbank appears to have most of the advantages of a regular savings account in that you can withdraw at any time and still get the basic interest rate that applies to the period up to when you withdraw. So somewhere between 2% and 7.5%.

Interest is paid out to a regular Kbank account at the end of each tranche.

What isn't clear is whether or not you can make a partial withdrawal and leave the rest in the account without penalty. I will go in and ask them today.

I agree that on paper the 3.5% 5-month account is better, but it's a pain having to switch banks in the first place, and also to have to think about accounts every 5 months.

Yep, I'd rather stay with my KBank too. I rather believe that the stepup account allows partial withdrawals. But I like to hear a definite answer. At my branch only very little English is spoken, so I cannot ask.

[Darrel]

Yep, I'd rather stay with my KBank too. I rather believe that the stepup account allows partial withdrawals. But I like to hear a definite answer. At my branch only very little English is spoken, so I cannot ask.

The girls in my branch (Pattaya Central) speak very good English. I asked the question and she said yes, you can withdraw early but you will probably lose all the interest. I said that the website says the opposite. She said yes, it does. But someone was in previously complaining that they had lost all the interest when they withdrew early, and so she thought it best to warn me.

As I almost certainly wont need to withdraw early I opened an account with 801K anyway. I may open another type of account with one of the next-door banks though, for the Baht I have over and above the 801K.

It also occurred to me that if you are likely to want a partial withdrawal, you could always just open several smaller stepup accounts. This limits the potential loss of interest.

One other thing I noticed: the passbook issued makes no mention of the "stepup" name, and the only interest rate mentioned on the book is the starting rate (2%). I mentioned it to the girl and she just stapled the "stepup" flyer to the passbook.

I will go in again this week and question another staff member about this, not that I suppose it will do much good.