Banking

[SCARLETIBIS1]

Bangkok Bank is now offering a 3.75% rate for money held 11 mos. I am told money is only insured for up to 1,000,000 baht as of Jan 1, 2012. That is roughly $30000 US which isn't a whole lot. The rate is pretty good but is it safe to put a 100000 US in to Bangkok Bank or any other bank?

[CharlieH]

It doesnt bother me in any way, but If you are concerned then spread it over several banks, they are all offering pretty much the same.

TMB even has one at 3.94% but for longer period I believe.

Edited September 20, 2011 by CharlieH

[JamesSwan]

I have run close to 180 G.US Funds in Thai Banks with "NO" problems.I also jumped on the "3.75%" for 11 months(takes care of my marriage visa/secures a Thai credit card)I have the latter on auto-pay to keep from paying any interest....No where on the "Fixed acct." shows that i am also using that savings acct.to procure a Thai credit card,and the bank will @ my request give me a written letter of funds on deposit for my marriage visa,It is a easy to "Kill Two Birds with one stone!".I have use "ATM's/wired funds/direct deposits with no problems".I have in fact had more issues with my American Bank,and just try and get that cleared up from here!I no longer use that bank in the States,but i do have a acct.with "Bangkok Bank of New York"...i send funds direct deposit,both Govt. & Private...anything happens to the funds,"BB" is under "US Banking Laws"..Bangkok Bank is a very good & safe bank,so i would not worry about in-house problems...other issues our your job to take care of..I always check my acct. regularly

[TallGuyJohninBKK]

To the OP, there are a couple issues here...

1. Here's a law forum article on the issue of Thai government insurance amounts and the changes to them for bank deposits... The change to 1 million baht per account holder per bank takes effect August 2012 and onward...

http://www.thailawforum.com/thai-deposit-insurance-law.html

But be aware, that government backed insurance only applies if the bank were to fail/go bankrupt.... It doesn't protect you in any way against other things, like having a crooked bank employee steal or siphon your funds, as has been known to happen here.

2. To get the kind of interest rate you're talking about, I'm presuming you're envisioning doing a time deposit with the bank. Those are probably somewhat safer. But be aware of anything involving regular savings or current accounts here where an ATM/debit card is involved. Because, unlike other countries, the rules in Thailand basically say that if your card or card number is stolen or compromised, you're responsible for any expenditures on your card (up to your daily limit each day) until AFTER you've formally reported the theft/fraud, apart from the issue of when/how you might become aware of it.

3. For Americans, be aware that having $10,000 or more on deposit in foreign bank accounts (anywhere, all accounts combined) triggers a special annual reporting requirement with the U.S. government.

4. Check with your Thai bank about how they will handle tax withholding (will they automatically deduct 15% of your interest earnings for Thai taxes), and will they pay the interest on your deposit monthly or quarterly or only at the end of the year?

[WilliaminBKK]

A major bank in the Philippines went bust last week, LBC and left thousands of people without money, they are only insured for equiv of 10K USD and in the small print non-filiono passport holders are not covered, it will take up to two years to get their money back. I'd make sure the insurance covers non Thais and spread it out over multiple banks.

[lomatopo]

Bangkok Bank is a very good & safe bank,so i would not worry about in-house problems

Just a few weeks ago a Bangkok Bank employee confessed to stealing 25 million baht (gold, valuable, amulets, cash) from several safety deposit boxes (rented by other senior BBL employees) at the Lat Phrao branch.

[givenall]

It doesnt bother me in any way, but If you are concerned then spread it over several banks, they are all offering pretty much the same.

TMB even has one at 3.94% but for longer period I believe.

I also a bit worry about only 1mil grantee.

But on the other hand does it really matter if the governmentgrantees. They probably will give the depositor a lot of problem if by anychance the depositor has put for aclaim

[TallGuyJohninBKK]

Bangkok Bank is a very good & safe bank,so i would not worry about in-house problems

Just a few weeks ago a Bangkok Bank employee confessed to stealing 25 million baht (gold, valuable, amulets, cash) from several safety deposit boxes (rented by other senior BBL employees) at the Lat Phrao branch.

Yep, I found it to be a particularly entertaining story....

http://www.thaivisa....afe+deposit+box

Though such insider theft doesn't just happen in Thailand.... Here's a recent BofA case from the U.S., for example...

http://www.computerw...-to-data-theft/

But in Thailand, the usual insider routine seems to be crooked bank employees using their bank's computer system to drain and/or transfer funds out of people's accounts...

The real question -- and I haven't seen a clear answer to this in Thailand -- is what do the Thai banks do with their customers and their drained accounts in such cases, particularly if they are farang....

I remember reading one news report here on such a case involving Thai account holders/victims where, at least in the newspaper article, someone from the bank was quoted as saying the bank wasn't responsible, that it was a criminal case and act by an individual (who of course was a bank employee) and the victims needed to pursue it with the police and/or the courts....

As I said, I don't know what Thai banks' policy is in such cases... But I was sure shocked when I read that account.

One thing is clear, however, and that's that the government's deposit insurance protections don't apply in the case of bank employee theft.

Edited September 22, 2011 by TallGuyJohninBKK