Good Deal From Scb?

[prodriver]

I've just been down to my local SCB branch to withdraw my monthly expenses and to transfer a lump sum from my savings account to my fixed deposit account (3 months). They told me that they have a promotion on at the moment on fixed deposit accounts and that they are offering 7% on a fixed deposit of 11 months. Couldn't resist that offer so I transferred the lump sum into an 11 month fixed deposit account. :)

[Firefan]

Sounds like a very good return indeed. I will go and check it out myself. Thanks. Cheers!

[jbaldwin]

SCB are not offering a 11 month fixed account paying 7%. What is on offer is an account which pays:

2% in months 1-4

3% in months 5-8

7% in months 9-11

The average rate over the 11 month period is 3.73%.

This is still fairly good but not quite 7%.

[Naam]

SCB are not offering a 11 month fixed account paying 7%. What is on offer is an account which pays:

2% in months 1-4

3% in months 5-8

7% in months 9-11

The average rate over the 11 month period is 3.73%.

This is still fairly good but not quite 7%.

not as good as Kasikorn which pays for a 3-month deposit 3.7% p.a.

[Darrel]

The average rate over the 11 month period is 3.73%.

not as good as Kasikorn which pays for a 3-month deposit 3.7% p.a.

That rather depends on what will happen to interest rates between months 4 and 11.

If they go up, then the Kbank 3 month is a good deal. if they go down then the SCB 11 month deal is better.

Personally I went for the Kbank step-up bond over 13 (or was it 15?) months for my visa extension deposit, which pays about the same 3.7%, as it has the vital "withdraw early" feature.

TMB have some better fixed rates than any of the ones mentioned in this thread.

[Chivas]

Have a look at Thanachart Bank which seems to be offering 4.25% term deposit as I wandered by in Buriram today.

Didn't check it out completely, so I will prempt our resident Wisconsin Bunkered Google expert and state this in advance.

[12DrinkMore]

Have a look at Thanachart Bank which seems to be offering 4.25% term deposit as I wandered by in Buriram today.

Didn't check it out completely, so I will prempt our resident Wisconsin Bunkered Google expert and state this in advance.

Here are their rates.

http://www.thanachartbank.co.th/TbankCMSFrontend/downloadrate.aspx?id=482〈=en&rateid=4

Can't see any 4.25% although I can't be bothered to work out the return on the "Super Grow Up" bullshit incremental rates crap.

The only reason I can think of that banks do this is to confuse the customer. I find it so <deleted> annoying.

[Chivas]

Have a look at Thanachart Bank which seems to be offering 4.25% term deposit as I wandered by in Buriram today.

Didn't check it out completely, so I will prempt our resident Wisconsin Bunkered Google expert and state this in advance.

Here are their rates.

http://www.thanachartbank.co.th/TbankCMSFrontend/downloadrate.aspx?id=482〈=en&rateid=4

Can't see any 4.25% although I can't be bothered to work out the return on the "Super Grow Up" bullshit incremental rates crap.

The only reason I can think of that banks do this is to confuse the customer. I find it so <deleted> annoying.

Ok will go into Thanachart next week whilst in Big C and ask, and if it sounds decent will report back.

[Naam]

Have a look at Thanachart Bank which seems to be offering 4.25% term deposit as I wandered by in Buriram today.

Didn't check it out completely, so I will prempt our resident Wisconsin Bunkered Google expert and state this in advance.

Here are their rates.

http://www.thanachartbank.co.th/TbankCMSFrontend/downloadrate.aspx?id=482〈=en&rateid=4

Can't see any 4.25% although I can't be bothered to work out the return on the "Super Grow Up" bullshit incremental rates crap.

The only reason I can think of that banks do this is to confuse the customer. I find it so <deleted> annoying.

please replace "confuse" with "bullshitting"!

[prodriver]

SCB are not offering a 11 month fixed account paying 7%. What is on offer is an account which pays:

2% in months 1-4

3% in months 5-8

7% in months 9-11

The average rate over the 11 month period is 3.73%.

This is still fairly good but not quite 7%.

Thanks for clarifying that. That's what the diagram they drew illustrated. I misinterpreted it. As usual, if it seems too good to be true, it most probably is! Still, better than nowt.

[Sophon]

not as good as Kasikorn which pays for a 3-month deposit 3.7% p.a.

More details please, what kind of account is this? According to Bank of Thailand Kasikorn Bank only offers 1.85-2.20% p.a. for a standard 3 month fixed deposit.

Sophon

[GreenSnapper]

not as good as Kasikorn which pays for a 3-month deposit 3.7% p.a.

More details please, what kind of account is this? According to Bank of Thailand Kasikorn Bank only offers 1.85-2.20% p.a. for a standard 3 month fixed deposit.

Sophon

30 months 'happy senior' get 3.25% per year. Monthly interest payment.

[Darrel]

Happy Senior has quite a few restrictions on it.

I think the step-up bonds are much better value.

[12DrinkMore]

Happy Senior has quite a few restrictions on it.

I think the step-up bonds are much better value.

Bangkok Bank, TMB, Krungsri are all offering around 3.7% for an 11 or12 month term deposit.

All better than the step-up bullshit stuff, marketed to attract the morons and gullible. Krungsri also pay the interest monthly into a deposit account, which might be useful.

[Darrel]

Bangkok Bank, TMB, Krungsri are all offering around 3.7% for an 11 or12 month term deposit.

All better than the step-up bullshit stuff, marketed to attract the morons and gullible. Krungsri also pay the interest monthly into a deposit account, which might be useful.

There's no bullshit involved with the step-up bonds. Just read the AER interest figure instead of the headline last month figure. No big deal.

My Kbank step-up bond pays a reasonable 3.7%AER, paid out every two/three months to my savings account, and, above all, allows for the possibility of immediate withdrawal without which it would not meet my visa extension requirements.

Regular term deposits are not suitable for this use.

So horses for courses, inevitably.

[12DrinkMore]

Bangkok Bank, TMB, Krungsri are all offering around 3.7% for an 11 or12 month term deposit.

All better than the step-up bullshit stuff, marketed to attract the morons and gullible. Krungsri also pay the interest monthly into a deposit account, which might be useful.

There's no bullshit involved with the step-up bonds. Just read the AER interest figure instead of the headline last month figure. No big deal.

My Kbank step-up bond pays a reasonable 3.7%AER, paid out every two/three months to my savings account, and, above all, allows for the possibility of immediate withdrawal without which it would not meet my visa extension requirements.

Regular term deposits are not suitable for this use.

So horses for courses, inevitably.

Misinformation

Regular term deposits are accepted by immigration for extension purposes.

Not all banks publish the AER rate, the SCB doesn't

http://www.scb.co.th...it-en-54-32.pdf

So you have to work out what the "Rising Rate" bullshit delivers, around 3.42% over 11 months, so you can compare it to the fixed rate for 11 months, which is 3.8%.

So why do they offer these accounts if it isn't there to bullshit the customer into thinking they are getting the headline 7%?

As indeed the OP thought, and is now earning 3.6% less than he thought he would get and 0.4% less than he could get. That, IMO, is BULLSHIT.

Edited September 4, 2011 by 12DrinkMore

[Darrel]

Regular term deposits are accepted by immigration for extension purposes.

That may depend on the office you have to use. Apparently my office does not accept them.

There is also the potential advantage of being to withdraw the cash if you actually need to for some reason. The step deposit allows this. Fixed deposits do not.

I am happy with my step deposit.

[12DrinkMore]

There is also the potential advantage of being to withdraw the cash if you actually need to for some reason. The step deposit allows this. Fixed deposits do not.

Misinformation

I have term deposits with the Bangkok Bank, Krungsri and SCB. All allow me to withdraw cash before the term expires, but I lose out massively on the interest.

My friendly bank manager at the Bangkok Bank even suggested that I made a number of smaller deposits rather than one chunk in case I needed to withdraw money early, so that the loss of interest would only apply to that smaller chunk I was withdrawing.

I don't know what the terms of your "step up" are, I couldn't find them on the internet. But I assume its the same, any early withdrawal will result in loss of interest.

[Pib]

My friendly bank manager at the Bangkok Bank even suggested that I made a number of smaller deposits rather than one chunk in case I needed to withdraw money early, so that the loss of interest would only apply to that smaller chunk I was withdrawing.

Yeap, and to quote the Bangkok Bank website on this approach:

Do you know? You can add multiple deposits to the same account. This gives you the advantage of not having to carry more than one passbook. If you add your deposits over a period of time they will mature at different times which gives you more flexibility when it comes to withdrawing your money.

Bangkok Bank web page on Fixed Deposits overview. Link

[Darrel]

I have term deposits with the Bangkok Bank, Krungsri and SCB. All allow me to withdraw cash before the term expires, but I lose out massively on the interest.

...............

I don't know what the terms of your "step up" are, I couldn't find them on the internet. But I assume its the same, any early withdrawal will result in loss of interest.

No, my step-up bond allows me to retain all interest acquired, even if I close the account early. Only future interest is lost.

As I said, it suits me fine. It also suits my immigration officer, which is of more importance.

[Naam]

not as good as Kasikorn which pays for a 3-month deposit 3.7% p.a.

More details please, what kind of account is this? According to Bank of Thailand Kasikorn Bank only offers 1.85-2.20% p.a. for a standard 3 month fixed deposit.

Sophon

i don't have any details and know only that a friend of mine just put THB 2mm in a 3months fixed deposit and gets 3.7%

[tartempion]

I opened a Quick 12 month deposit account with TMB on 30 august 800K at 3.75% and had my interest posted to a savings account today 05 September, 25.500THB, 15% tax deduction withheld. Thus you get your yearly interest on day 7 of deposit!

Will use the account for my retirement extension, it seems Udon immigration will accept this kind of account, if not, I don't care really, will use the embassy letter as before.

You can withdraw early, but must withdraw all of it with loss of interest, understandably.

Edited September 5, 2011 by tartempion

[Pib]

I opened a Quick 12 month deposit account with TMB on 30 august 800K at 3.75% and had my interest posted to a savings account today 05 September, 25.500THB, 15% tax deduction withheld. Thus you get your yearly interest on day 7 of deposit!

Will use the account for my retirement extension, it seems Udon immigration will accept this kind of account, if not, I don't care really, will use the embassy letter as before.

You can withdraw early, but must withdraw all of it with loss of interest, understandably.

But it doesn't appear you lose all the interest if withdrawing after three months per TMB's webpage on the Quick Term Deposit Program. Link. A quote from the Fees/Interest Rate on the Quick Term web page states (note the "Advance Interest Paid" portion of the quote:

If money is withdrawn prior to the 3 months period, the interest will not be paid. If money is withdrawn after the 3 months period but before maturity, normal savings rate (at the day of account opening) will be applied together with deduction on withholding tax. Advance interest paid and withholding tax will be deducted from the principal.

But apparently you can not withdraw a partial amount...you have to withdraw everything....and then the bank starts taking back X-amount of the adance interest paid. I wonder when they pay the 15% tax withholding on the Advance Interest paid....I expect if they have paid it already the bank can't pull that back from the govt and give it back to you if you withdraw funds early; instead, you will need to file income tax type paperwork with the govt to get it back.

But it should be a nice feeling to have the advance interest paid upfront and for some folks it could make that little bit of extra difference to reach the 800K baht point for a retirement extension of stay. Not to imply anything. I too have been using the Embassy Letter approach for my extensions, but this year I'm going to use the 800K baht in the bank method since I just a happen to have that much due to a pending large buy....next year I'll probably be back to using the Embassy Income Letter, but at least this year I'm going to save almost $47 in the extension process by using the bank letter with 800K deposit versus paying $50 for the U.S. Embassy Income Letter.

Edited September 5, 2011 by Pib

[Darrel]

The TMB 24 month step-up bond gives a slightly better rate of 4%AER. Interest is paid every 3 months, I think.

This account should also qualify for visa extensions as you can withdraw early (with penalty).

Having opened a TMB account recently I am rather pleased with them. They seem to be a bit more generous than Kbank as far as interest goes, and the accounts/services they offer seem to be slightly better designed.

[GreenSnapper]

Happy Senior has quite a few restrictions on it.

I think the step-up bonds are much better value.

The stepups seem to be cancelled at Kasikorn. Now the average interest is slightly above 2% only.

[Darrel]

The stepups seem to be cancelled at Kasikorn. Now the average interest is slightly above 2% only.

The Kbank step-up was only available for 2 months.

The TMB step-up is still available.

[prodriver]

Let's see if I've got this right. I have a 3 month fixed deposit account with SCB which according to my passbook is currently paying an annual interest rate of 1.6%, at least until 19th of this month anyway. I've now opened another fixed deposit with the same bank which has a 'step up' type of interest rate which seems to pay a better rate than the other account over an 11 month period.

According to "12DrinkMore" these 'step up' types of account are to attract morons and the gullible. I have not got money in a Thai bank for investment purposes as such. It's there for living expenses and to meet visa extension requirements. It would therefore seem reasonable, as the money is here anyway, that I take the opportunity of getting a few thousand baht more whilst it's there for the taking. Am I missing something here? Is there some great pitfall that I have not foreseen?

As "12DrinkMore" suggests that I am a gullible moron for having any money in one of these accounts, perhaps he could explain the reasons why?

Edited September 6, 2011 by prodriver

[Darrel]

As "12DrinkMore" suggests that I am a gullible moron for having any money in one of these accounts, perhaps he could explain the reasons why?

Like me, you have let yourself be swayed by flash advertising and smooth-talking cashiers, and are now earning more interest than you would get from a regular time deposit.

God, do I feel stupid now! I'm sure you do too.

[12DrinkMore]

Let's see if I've got this right. I have a 3 month fixed deposit account with SCB which according to my passbook is currently paying an annual interest rate of 1.6%, at least until 19th of this month anyway. I've now opened another fixed deposit with the same bank which has a 'step up' type of interest rate which seems to pay a better rate than the other account over an 11 month period.

According to "12DrinkMore" these 'step up' types of account are to attract morons and the gullible. I have not got money in a Thai bank for investment purposes as such. It's there for living expenses and to meet visa extension requirements. It would therefore seem reasonable, as the money is here anyway, that I take the opportunity of getting a few thousand baht more whilst it's there for the taking. Am I missing something here? Is there some great pitfall that I have not foreseen?

As "12DrinkMore" suggests that I am a gullible moron for having any money in one of these accounts, perhaps he could explain the reasons why?

Hi,

Sorry that comment was not aimed in any way at you. The banks advertise in big numbers the 7% interest (or whatever) which is only paid during the last month or two of the term. So IMO people are deceived into opening an account expecting to get 7% over the year. Now why do they do this instead of simply offering and advertising a flat return? IMO this is simply the bloody banks misleading the public with their marketing.

Currently you can get 3.7% on a term deposit at several banks, as far as I know none of the Step Up type accounts will offer that annualised over the year, unless you put the money on a two year term, which I think is a too long in the current economic situation.

You might be interested in the TMB 'no fixed' account for monthly expenses, which pays 2.5%, allowing four free withdrawals/month, and the interest is paid withholding tax free.

[12DrinkMore]

As "12DrinkMore" suggests that I am a gullible moron for having any money in one of these accounts, perhaps he could explain the reasons why?

Like me, you have let yourself be swayed by flash advertising and smooth-talking cashiers, and are now earning more interest than you would get from a regular time deposit.

Right, here we go.

We're talking about the SCB. Here are the latest interest rates.

http://www.scb.co.th/stocks/media/ratesfees/deposit-en-54-32.pdf

The easy one is the 11 month fixed deposit at an annualised 3.8%

The Rising Rate thing will give you over the same period 4 months at 2%, 4 months at 4% and 3 months at 7% which is an annualised rate of 3.72%, provided I've done the sums correctly.

So at the SCB the standard fixed term will give you a bit more, not much, but more. Why do they do this?