Beware Of Bank'S Higher Interest Rates

[gguy]

I visited my local Bangkok Bank Branch and asked about the 3.5% offer.

The offer is a new account that pays 3.5% for 5 months and then the 3 month CD rate which is about 1.5%.

It is very difficult to move your money. You have to personally visit your branch on the expiration to request the money. The money keeps being renewed for 3 months. I think you can get your money but you lose all the accrued interest.

The bank is promoting this very hard. I was given three brochures when I entered the bank. The bank is definitely paying commissions on this product. I had all the paperwork filled out before I could find someone who spoke adequate English to explain the product. I passed and decide to keep my passbook at .75% interest.

You should also beware if you use any or all the money for the 800,000 retirement visa. You may break the chain from overseas transfer to your Thai bank account.

[PattayaParent]

It is very difficult to move your money. You have to personally visit your branch on the expiration to request the money. The money keeps being renewed for 3 months. I think you can get your money but you lose all the accrued interest.

SOP for all banks the world over unless they accept letter, 'phone or fax instructions.

[CMSteve]

Usually there would be a short grace period to stop the rollover and even the possabilty to transfer funds upon maturity(with previous instructions on file).

Also, many Thai banks still pay interest on on broken CD's/TD's. Although the interest paid is much lower than what would have been paid at full maturity. Its nothing like in the US, where you would lose interest and pay a break-funding fee to boot...

It is very difficult to move your money. You have to personally visit your branch on the expiration to request the money. The money keeps being renewed for 3 months. I think you can get your money but you lose all the accrued interest.

SOP for all banks the world over unless they accept letter, 'phone or fax instructions.

[12DrinkMore]

I do not understand the issues you have.

This is a five month bond, after that you can easily move it to wherever you want to. If you need the money before you can get it with no fuss, you will be paid the prevailing savings account interest. After five months the bank has to do something, and by default they will put it on a three month deposit. And?

There is no "chain" to be broken. Absolute nonsense.

The requirement is 800,000 in one or more bank accounts (MM funds not allowed, but fixed deposits and savings are fine) for three months prior to renewal. That is all immigration are interested in.

The only real issue you have mentioned is the requirement to visit the branch where the money is deposited. This is a small nuisance, I have to agree. But nothing insurmountable. In fact it is a pleasure to visit as the service is excellent and the staff very attractive.

Edited July 8, 2011 by 12DrinkMore

[gguy]

I do not understand the issues you have.

This is a five month bond, after that you can easily move it to wherever you want to. If you need the money before you can get it with no fuss, you will be paid the prevailing savings account interest. After five months the bank has to do something, and by default they will put it on a three month deposit. And?

There is no "chain" to be broken. Absolute nonsense.

The requirement is 800,000 in one or more bank accounts (MM funds not allowed, but fixed deposits and savings are fine) for three months prior to renewal. That is all immigration are interested in.

The only real issue you have mentioned is the requirement to visit the branch where the money is deposited. This is a small nuisance, I have to agree. But nothing insurmountable. In fact it is a pleasure to visit as the service is excellent and the staff very attractive.

According to the bank website, you receive no interest if you withdraw within the first three months. But you probably right and the website is WRONG.

Another area you are right about is that you do not have to show the funds for retirement come from overseas. Thai immigration is wrong again.

[el jefe]

As CMSteve said above, you can fill out a form with instructions to transfer the funds upon maturity. I've done that with Bangkok Bank. No need to visit the branch.

[12DrinkMore]

According to the bank website, you receive no interest if you withdraw within the first three months. But you probably right and the website is WRONG.

The website is right, sorry I missed that.

Another area you are right about is that you do not have to show the funds for retirement come from overseas. Thai immigration is wrong again.

The requirements for the visa are here

http://www.mfa.go.th/web/2482.php?id=2493

There is no requirement for the funds to come from abroad. That is, as far as I am aware, only required to purchase a condo in a foreigner's name.

[lopburi3]

1. Immigration is 800k in Thai located bank account for 2/3 months. There is no check for origin in law or normal current practice. And in any event a change of account type would not remove the paper trail even in the old system where checks were made as you keep the passbooks.

2. You only lose interest if you withdraw money prior to end of the fixed deposit period (actually suspect you lose nothing as you do not normally receive any interest until the period ends). If you do not advise them to do something else the money will go into 3 month fixed deposit until you do tell them. Perfectly reasonable and normal to my mind.

[aurelius]

As CMSteve said above, you can fill out a form with instructions to transfer the funds upon maturity. I've done that with Bangkok Bank. No need to visit the branch.

Totally correct.

Also, recently I've checked with Immigration on the 800k requirement and they confirmed that it can be held in a saving or fixed a/c - I had heard that in Pattaya they don't accept fixed accounts, but the official in BKK said there is one national governing regulation which clearly doesn't not differentiate between fixed or saving deposit accounts; the same official said that if anyone in Pattaya immigration was not allowing fixed accounts that people should complain to higher authorities in that office or bring it to the attention of officials in BKK. They did say that having the passbook updated as per the date of application would be useful.

Futhermore (on a roll here).. for those of us buying tax saving retirement funds at the end of the year, or companies that have to squirrel cash away to pay bonuses, this 5 month thing matures just before the due dates for all those types of expenses.