Moving Us Dollars To Thai Baht

[jfchandler]

Do the Thai banks still charge you 150 baht? Is it a debit card? Can you direct deposit into it?

I'll look into it before I leave.

I still think you work for them.

In answer to your question, I don't and never have... Have absolutely no current or past business/employment or investment/economic relationship with anything to do with banking or finance... I'm strictly a consumer...

But in answer to your questions, I'm assuming you mean about the Schwab accounts....

The Schwab checking account comes with a Visa logo debit card.... If you use that card at a Thai bank ATM to withdraw funds from your Schwab checking account, the Thai bank ATM will assess the 150 baht foreign card fee...the same as with using any other non-Thai bank card.

The only difference is, Schwab at the end of each calendar month automatically reimburses you for any of those ATM fees you've been charged by other banks....whether they're other banks in the U.S., in Thailand, or anywhere else for that matter... No claim forms or receipts to submit... They just do it automatically as a month end credit to your account.

And, as I mentioned before, unlike most if not all of the major U.S. banks, Schwab doesn't charge any foreign currency exchange fee on ATM withdrawals or POS purchase transactions done outside the U.S. -- compared to the typical 3% surcharge tacked on by a lot of the other big banks.... Between those two features, it has the potential to save someone quite a bit of money.

As for your direct deposit question, I believe the answer is yes... It's just like any other bank checking account, so you'll have an account number and ABA/routing number... You provide those to whomever you want to be doing the direct deposit, and then it will show up in your account each month, with the funds accessible in the same manner as any other normal checking account.

The one limitation that I should mention, which really is a minor one, requires a bit of explaining... If you do this with Schwab, you'll have two linked accounts in their online banking setup, one the checking, and two the brokerage... And, with their online banking, you have the ability to move funds immediately back and forth between those two Schwab accounts as you might wish via electronic transfer... Nothing unusual there.

You also have the ability, the same with many other banks, to electronically link your Schwab accounts to your other accounts at other banks, so you can do free ACH (online electronic funds transfers) from your Schwab account to other external accounts you hold, or in reverse, pull funds from other accounts you hold into your Schwab accounts.

The one limitation is that Schwab, unlike most banks, still requires account holders to mail in a paper form to set up those kinds of links to their checking account, whereas most banks these days offer the ability to do that online via a process involving trial deposits.... I'm talking only about a one-time setup process here for any new linked account, and not about what's required for making online funds transfers...just to be clear.

But I said above this is a minor issue and it is, because, inexplicably, Schwab does allow online only linking (no mailed form required) between your external accounts and their Schwab brokerage account... So, you could always just push or pull funds into/out of your brokerage account and any online linked accounts there, and then do an immediate online transfer from your brokerage account into your Schwab checking account... Takes about 30 seconds and a few clicks to do online.

If you read through the many comments that others here on TV have posted in the banking forum on the value of banking with Schwab, that latter issue is pretty much the only negative comment that anyone here has had... So it's not just me who's offering that opinion and assessment. It's recognizing a good deal when you see it.

BTW, anyone interested in a Schwab account should open it from the U.S., not once they might already be abroad. It's much simpler and easier that way...

[Shotime]

I was going to look into it, but thanks.

You should work for them.

[Shotime]

Apologies are in order. I opened my Schwab account today. No more ATM fees anywhere.

I was never a big Jeff Candler fan, but things change.

[jfchandler]

Thanks for that.... As I said before, I have no vested interest in Schwab. But the fact is, right now with their current set-up, they offer one of the best deals going for those who are ex-pats or who travel abroad a lot...

There are other banks and CUs that offer similar set-ups and come close... But few are as simple and uncomplicated (meaning no account requirements to meet in order to obtain various benefits) as Schwab.

If Schwab were ever to change their current policies, I'd certainly then recommend whatever would be the best available option(s) in that scenario...

Lastly, as has often been said here before, Schwab account holders traveling in Thailand, when they can, certainly should try to make use of the AEON fee-free ATMs, as opposed to having your own bank reimbursing you 150 baht for the ripoff Thai bank fee every time. By doing so, hopefully, you'll help preserve the Schwab benefits for a long time to come.

[JimGant]

Good report, JFC, per usual.

Just to add. You can apply online to open an account -- as a single. But for a joint account, you need to printout their pdf application form (most blocks can be filled-in online), then get both signatures, and mail it in. I tried a sneaky, since wife was in Thailand, and I was in States. I used one of those programs that unlocks all the fields in a secure pdf document, including the signature field. Nope, I got discovered. Was told to mail in "the original." Oh well.

Also, setting up an ACH with Schwab checking was no problem -- since I worked it from the other end, i.e., setting up a 'push' 'pull' from the financial institutions that might ever interact with Schwab.

End of month credit for the ATM fee was as advertised -- posted same day as the monthly interest.

Used the card Tuesday, 16 Aug. Got Visa's advertised rate, dead-on to the third decimal place, of 29.821. BOT's IER was 29.845, and their Buying TT rate was 29.695. Better than what I've averaged, but still in the same relative positions to TT and IER. MasterCard's advertised rate for 16 Aug: 29.596 -- a 13 satang lower rate...

No fees, ATM reimbursement, and the Visa exchange rate -- can't do better than that (well, you could, if Visa ate their spread, and gave you the Interbank Exchange Rate (IER)-- but, close enough).

Oh, unless this has changed, you can't notify them via email or secure online messaging that you'll be using the card in Thailand. Need to phone them -- and even then they tried to tell me to call back when I'm within 30 days of travel. We instantly corrected that, however. Not sure if this is 'permanently' on file -- or if I have to periodically update, particularly if there's a lull when back in the States...(?). No biggy, so I'm sure I'll update, just to be sure.