Bangkok Bank 5 Month Term - Interest 3.5%Pa

[JAS21]

I was in an branch of Bangkok Bank today. It looks like they are offering 3.5%pa for a fixed period of 5 months. Offer ends 29th of this month.

According to their web site the normal offer for 6 months is 2.125%pa.

[falang07]

http://www.bangkokbank.com/Bangkok%20Bank/Personal%20Banking/Investments%20and%20Fixed/Fixed%20Deposits/Pages/5MonthDeposit.aspx

[pontious]

What about the 15% withholding tax?

[12DrinkMore]

What about the 15% withholding tax?

Well?

That comes off the interest resulting in 3%.

[AbeSurd]

Well?

That comes off the interest resulting in 3%.

Not so, according to the Bangkok Bank branch I went into today.

The bank pays the 15 percent tax. You get the full 3.5 percent.

That's what I was told.

[OriginalPoster]

Well?

That comes off the interest resulting in 3%.

Not so, according to the Bangkok Bank branch I went into today.

The bank pays the 15 percent tax. You get the full 3.5 percent.

That's what I was told.

In some ways that's worse if you're a US citizen and play by the rules in regard to reporting your foreign income. You can take any foreign taxes that you've paid as a credit against your US tax bill, but if there isn't a line item on your bank statements showing the amount of tax paid then you're going to get double taxed on the income. Would be more advantous if the statement showed 4.1% interest being paid with 15% of that being paid in taxes (resulting in a 3.5% net).

[AbeSurd]

Sorry, I must correct myself here! I checked with the bank again today. Yes "the bank pays the 15 percent tax" - but they pay it out of your gross 3.5 percent interest! On, for example, a deposit of one million baht - you end up with about 12,400 baht net interest when the 5 months is up.

[maccaroni man]

i was thinking they had a program that graduated all the way to 5% within 13 mo's with steps at the 7th and 13th months

[aurelius]

Well?

That comes off the interest resulting in 3%.

Not so, according to the Bangkok Bank branch I went into today.

The bank pays the 15 percent tax. You get the full 3.5 percent.

That's what I was told.

In some ways that's worse if you're a US citizen and play by the rules in regard to reporting your foreign income. You can take any foreign taxes that you've paid as a credit against your US tax bill, but if there isn't a line item on your bank statements showing the amount of tax paid then you're going to get double taxed on the income. Would be more advantous if the statement showed 4.1% interest being paid with 15% of that being paid in taxes (resulting in a 3.5% net).

You can request a tax certificate from the branch that holds your account after year end.

[aurelius]

duplicate post

Edited July 27, 2011 by aurelius

[mikebell]

Discussion merely academic - according to web-advert the offer closed Friday last.