Krung Thai Bank Offers Higher Interest To Lure Customers To New 'Netbank'

[george]

KTB offers higher interest to lure customers to 'netbank' service

By Sucheera Pinijparakarn

BANGKOK: -- Krung Thai Bank expects its new Internet banking service, which it calls "netbank", to gain 50,000 new customers and raise new deposits of Bt100 billion within five years.

Apisak Tantivorawong, KTB president, said the bank had 18 million accounts and a customer base of 14 million. About 10,000 accounts use Internet banking. KTB projects that the total number of accounts will increase by 1 million within two or three years and the bank will have 50,000 new customers within five years through its netbank.

The number of customers using Internet banking is not large because some might not be familiar with doing transactions through a computer. However, as smart phones and tablet computers become popular, the bank has designed financial transactions to be done on such devices besides Internet banking via personal computers.

Customers can make all transactions from opening new accounts to withdrawals via netbank, he said.

Customers who apply for netbank will not be required to own a deposit account book. In addition, netbank customers will receive interest 50 basis points higher than that for traditional bank customers.

"Financial costs from netbank are lower than from traditional banking, so we can offer a special rate for savings depositors. We believe the higher interest will attract more customers to use netbank," Apisak said.

He added that netbank was developed to encourage new customers to use the service instead of traditional banking. KTB believes the convenience of the service and the higher interest rate will encourage some existing customers to shift to netbank as well, he said.

Netbank users will be required to make a minimum deposit of Bt10,000.

Anuchit Anuchitanukul, executive vice president, said the bank's target netbank customers were younger people and depositors who have a monthly income of Bt23,000-Bt25,000.

The first phase will be for savings deposits. The bank also plans to use the same platform for fixed deposits.

-- The Nation 2011-05-10

[Berek]

Welcome to the 20th century

What next? Bpay?

Edited May 10, 2011 by Berek

[Pib]

But I bet for a farang to get a Netbank account they will have to provide 3Kgs of paperwork and a DNA sample.

[soulinchiangmai]

All banks giveth - then taketh away

[dindong]

But I bet for a farang to get a Netbank account they will have to provide 3Kgs of paperwork and a DNA sample.

and get an interest rate of .0005% whoopeeeeeee

[KhunOr]

KTB has had internet banking for years. Interesting to know how this new service will differ.

Taliking of interest, I wonder if they will change their policy of NOT giving any interest to foreign customers.

Right now interest is only given to Thais.

[Pib]

KTB has had internet banking for years. Interesting to know how this new service will differ.

Taliking of interest, I wonder if they will change their policy of NOT giving any interest to foreign customers.

Right now interest is only given to Thais.

I expect they do give interest as long as your account is coded as being long stay resident/residing in Thailand (i.e., on a long stay visa/extension of stay of 1 year). Seen many posts on TV where some farangs get full interest on their accounts and other don't. I get full interest (just like a Thai) on my two Bangkok Bank accounts....I'm on a long stay retirement visa....but I got full interest even before I became a long stay resident. Depends on how the bank has coded your account. They probably have you coded as a non-resident.

Edited May 11, 2011 by Pib

[KhunOr]

KTB has had internet banking for years. Interesting to know how this new service will differ.

Taliking of interest, I wonder if they will change their policy of NOT giving any interest to foreign customers.

Right now interest is only given to Thais.

I expect they do give interest as long as your account is coded as being long stay resident/residing in Thailand (i.e., on a long stay visa/extension of stay of 1 year). Seen many posts on TV where some farangs get full interest on their accounts and other don't. I get full interest (just like a Thai) on my two Bangkok Bank accounts....I'm on a long stay retirement visa....but I got full interest even before I became a long stay resident. Depends on how the bank has coded your account. They probably have you coded as a non-resident.

[KhunOr]

Other banks do give interest to foreigners.

KTB does not give interest to foreigners as a matter of policy.

If any KTB customers receive interest, please post here.

KTB has had internet banking for years. Interesting to know how this new service will differ.

Taliking of interest, I wonder if they will change their policy of NOT giving any interest to foreign customers.

Right now interest is only given to Thais.

I expect they do give interest as long as your account is coded as being long stay resident/residing in Thailand (i.e., on a long stay visa/extension of stay of 1 year). Seen many posts on TV where some farangs get full interest on their accounts and other don't. I get full interest (just like a Thai) on my two Bangkok Bank accounts....I'm on a long stay retirement visa....but I got full interest even before I became a long stay resident. Depends on how the bank has coded your account. They probably have you coded as a non-resident.

[Sophon]

Other banks do give interest to foreigners.

KTB does not give interest to foreigners as a matter of policy.

If any KTB customers receive interest, please post here.

KTB has had internet banking for years. Interesting to know how this new service will differ.

Taliking of interest, I wonder if they will change their policy of NOT giving any interest to foreign customers.

Right now interest is only given to Thais.

I expect they do give interest as long as your account is coded as being long stay resident/residing in Thailand (i.e., on a long stay visa/extension of stay of 1 year). Seen many posts on TV where some farangs get full interest on their accounts and other don't. I get full interest (just like a Thai) on my two Bangkok Bank accounts....I'm on a long stay retirement visa....but I got full interest even before I became a long stay resident. Depends on how the bank has coded your account. They probably have you coded as a non-resident.

It's true that Krung Thai Bank has a policy of not giving interest to non-residents, but note that it's "non-residents" not "foreigners". If you can show that you live in Thailand on a more permanent basis, then KTB will give you interest on your account. Exactly what kind of documentation is required to achieve this may vary from branch to branch.

I opened my KTB account in 2002 and received interest for the first couple of years. Then their policy changed and until early this year I did not receive interest on my account. But after showing KTB my yellow tabien bahn and a non-immigrant visa my account was registered as an interest bearing account again.

Sophon

[Sophon]

As an addendum it also looks like Krung Thai Bank's policy of not giving interest to non-residents are limited to certain types of accounts.

According to the interest information sheet on their web site non-residents do not receive interest on savings accounts, 3 months fixed deposit accounts and their KTB 15 Bonus account. But they do receive interest on fixed deposit accounts with longer maturity at the same rates as residents.

I don't know how accuate the information on the website is, I have no personal experience with fixed accounts in KTB until after I was registered as a resident in their system.

Sophon

[Pib]

It's true that Krung Thai Bank has a policy of not giving interest to non-residents, but note that it's "non-residents" not "foreigners". If you can show that you live in Thailand on a more permanent basis, then KTB will give you interest on your account. Exactly what kind of documentation is required to achieve this may vary from branch to branch.

I opened my KTB account in 2002 and received interest for the first couple of years. Then their policy changed and until early this year I did not receive interest on my account. But after showing KTB my yellow tabien bahn and a non-immigrant visa my account was registered as an interest bearing account again.

Sophon

It's probably going to vary a little from bank-to-bank, branch-to-branch as to what documents they want, but generally a long stay visa/extension of stay (i.e., 1 year) or a Certificate of Residence or a Yellow Book opens the door to an interest bearing savings account versus a savings account which don't. Of course, if you are working in Thailand and have a work permit you can also get a interest bearing savings account. It's basically convincing the bank you live in Thailand most of the year.

Although this Bangkok Bank Web Link don't specifically talk what it takes to have interest paid on your savings account, I think it clearly shows account privileges (like maybe interest) will vary between people considered to be in Thailand for a "short time" or a "long time." I still remember when I opened by 2nd Bangkok Bank account as the representative was entering information in their system to setup/open the new account, she noticed near the end of the setup she had incorrectly entered some code that didn't indicate my full time residence as being in Thailand and it took her a few minutes to correct that. I can't be sure but from talking to her, that code may have been key in determining whether the account paid interest or not, related to my Thailand residence, etc. When opening this account, I basically showed my passport with Retirement Extension of Stay and my Yellow Book.

I can't say I really needed the Yellow Book to open this second account (didn't need it for the first account years back) which includes interest, but over the years it just seems showing the Yellow Book when applying for certain things moves away a lot of the huddles since Thai govt agencies/banks/companies are so use to requiring a Thai ID (or passport for farangs) and a Blue Book/House Registration (Yellow Book serves the same basic purpose for foreigners) at a minimum when trying to do/register for certain things.

Edited May 11, 2011 by Pib