Pensions

[theoldgit]

I don't understand how some people are getting a poor exchange rate and extra charges with their pension transfers.

I get mine paid into Siam Commercial Bank every 4 weeks and as I said the there are no transfer charges and the exchange rate is favorable to the rate of the time.

I'm sure that people are saying they get poor exchange rates with their State Pension, I do with my Civil Service Pension but that's a different system, probably in the region of 1.5 - 2 Baht in the Pound. So it pays me to have it sent to a UK/IOM Bank and take a hit on the transmission fee, more so if I can lump it with mt State Pension and better again if I transfer every three months.

[meatboy]

first of all you must inform the international pension service that your moving abroad tel.no.01912-187777,they will pay it direct to your chosen bank,or if you still have a bank account in the uk have it paid into it,and trans.once a year if conveiniant,that way you trans to thailand when the rate of ex.is favourable and you will only pay swift trans.once a year and a small fee this end,if you do this make sure its trans to thailand in sterling.if you go for the trans.every month you can bet you will be hit with thai banks either skimming a bit off the ex.rate or a conversion fee or both.

[koppite]

first of all you must inform the international pension service that your moving abroad tel.no.01912-187777,they will pay it direct to your chosen bank,or if you still have a bank account in the uk have it paid into it,and trans.once a year if conveiniant,that way you trans to thailand when the rate of ex.is favourable and you will only pay swift trans.once a year and a small fee this end,if you do this make sure its trans to thailand in sterling.if you go for the trans.every month you can bet you will be hit with thai banks either skimming a bit off the ex.rate or a conversion fee or both.

thanks for your help

[davyboy]

No matter what the question whether serious or frivolous there are always some smart ass people giving smart ass answers on subjects they know nothing about.

You can have your UK Government Pension paid directly in to a Thai Bank account. There is no charge for this and the exchange rate is on par with the going rate.

My pension day is every 4th Friday and the money is in my Thai account on start of business on the following Monday.

Sometimes if there is a Thai holiday on the Monday it may be a day late, but on the other hand over Xmas it arrived on the actual Friday.

Contact the pension office to arrange the details.

Easy Peasy..

Yes, as you say 'Easy Peasy'

There is no charge by the Government, but your bank may make a charge.

Krung Thai charge me 120 baht each time, but no big deal!

[prodriver]

I don't understand how some people are getting a poor exchange rate and extra charges with their pension transfers.

I get mine paid into Siam Commercial Bank every 4 weeks and as I said the there are no transfer charges and the exchange rate is favorable to the rate of the time.

Could you be more specific regarding what rate of exchange you get by having your pension paid directly to Thailand as I understand that it is converted into Thai Baht before being transferred. I become 65 this month and have pondered over which way to receive my UK State Pension. I have tried before in the past to establish what rate one gets by having it paid direct to Thailand so that I could compare it to having the money sent in sterling. Unfortunately, I have only ever got the answer as it being 'a favorable rate of the time'. As you get your pension paid every 4 weeks into the SCB, could you perhaps give us the rate you got for september/august.

Many thanks in anticipation :jap:

[theoldgit]

^^^^

Indeed that specific information would be really helpful, even then I suppose it would depend on when Citibank actually purchased the currency, the rate could go either way after the Baht was purchased and before it actually reached your Thai Bank.

[lopburi3]

I'm guessing you are not a U.S. citizen...but maybe some are reading this...so here's what I do.

First I opened a bank account in my home country...the U.S. in my case. My pension is deposited in that bank account every month.

Next I established an agreement with my U.S. bank so I could transfer money by a SWIFT transfer. I had to specify my bank in Bangkok, the maximum amount of each transfer, and name/account number. This had to be done in person and the forms signed by me. They now have my Thai bank info on file.

Bangkok Bank has a branch bank in New York, so my local U.S. bank does the SWIFT transfer through New York.

I start the SWIFT transfer with an email to my U.S. bank to do that transfer.

My U.S. bank charges me $30 per transfer...but as I will be 65 soon, the fee will then be redused to $20 per transfer.

There is no charge here in Bangkok (Bangkok Bank) for the transfer. The money is converted at the bank rate in Bangkok on the day it is recieved.

Usually takes 2 or 3 days for the funds to arrive from the day I send an email starting the process.

I use by Bangkok Bank card to withdraw the funds as required from a local ATM.

Been doing it that way for years.

Easy and quick.

However Bangkok Bank indeed will make a charge on receipt of .25% up to 500 baht after conversion (just removed from your total account deposit but listed if you get SMS). There will also be an intermediary bank withdrawal of $2-5 before the US amount is sent onward to Thailand. You could save on the SWIFT charge by using ACH transfer directly to Bangkok Bank New York (but take about two days that way). Many banks do not charge any fee for that but you will still get the intermediary bank and Bangkok Bank in Thailand deductions. UK has a similar system which might be a better idea than directly sending to Thailand as you then have money in UK for mail order and such.

[Daffy D]

Could you be more specific regarding what rate of exchange you get by having your pension paid directly to Thailand as I understand that it is converted into Thai Baht before being transferred. I become 65 this month and have pondered over which way to receive my UK State Pension. I have tried before in the past to establish what rate one gets by having it paid direct to Thailand so that I could compare it to having the money sent in sterling. Unfortunately, I have only ever got the answer as it being 'a favorable rate of the time'. As you get your pension paid every 4 weeks into the SCB, could you perhaps give us the rate you got for september/august.

Many thanks in anticipation :jap:

Difficult to be specifically specific

Exchange rates vary from day to day so it depends on what day the actual transfer took place and what rate you check. Look at any of the Exchange rates on the Web and they will all be slightly different.

I estimate the my rate by dividing the Baht that arrives in my account by the Pounds Sterling and it will be within the ballpark of the published rates. And as I said the Thai bank makes no charges for this.

My rate for August was 48.11

It is only recently (couple of years) that UK State Pension can be paid into a Thai Bank. Before this, as I don't have a UK address, I had to open an account with a Channel Island Bank where they charged 20Pound per month because the balance was below a certain level plus a percentage of transfer fee and then the 150Bt for using ATM here

As already discussed there are different ways of transferring money. Previously I had lump sums transfered by SWIFT

which incurred bank charges and possibly poor exchange rates. Here we are talking specifically about UK State Pension payments.

[prodriver]

Could you be more specific regarding what rate of exchange you get by having your pension paid directly to Thailand as I understand that it is converted into Thai Baht before being transferred. I become 65 this month and have pondered over which way to receive my UK State Pension. I have tried before in the past to establish what rate one gets by having it paid direct to Thailand so that I could compare it to having the money sent in sterling. Unfortunately, I have only ever got the answer as it being 'a favorable rate of the time'. As you get your pension paid every 4 weeks into the SCB, could you perhaps give us the rate you got for september/august.

Many thanks in anticipation :jap:

Difficult to be specifically specific

My rate for August was 48.11

I agree that it is difficult to be 'specifically specific' for the reasons that you mentioned.

Anyway, your rate of 48.11 for August gave me something to work on. Looking back at the T/T rate for around the end of that month I see that it was between 49 and just under 49.5. So it appears that you get a rate of somewhere between 1 to 1.5 baht less than the telex transfer rate.

I have decided to have my pension paid to my account with Nationwide International I.O.M. and to get it transferred over to Thailand three times a year which will cost me £60 sterling (3 x £20) in transfer fees. My pension will be £153 per week and by doing the calculations it appears that I will gain roughly anywhere between 8,000 - 12,000 baht per annum more than if I had opted to have it paid directly into my Thai bank. Admittedly, not a fortune saved but these days every little helps.

Thanks Daffy D for stepping up to the plate and giving me a figure.

[koppite]

Thanks for that its all new to me my bank wanted to charge me 30 to send it over

Of course your bank will charge you for a SWIFT transfer... we are not not-profit organisations... we want salary and bonuses... ;-)

You should be offered two options 1) transfer cost charged to the sender 2) transfer cost charged to the receiver

in option 1) your bank might charge you only 10$ but the Thai bank will take 500-1'000 Baht for booking the money to your account

in option 2) your bank might charge you 30$ but your Thai bank will only take 100-200 Baht for booking the money to your account.

I am always taking option 2, for me with the fees my bank takes, I get more money (and I send in Thai baht, as the exchange rate of my bank is better than the one of the Thai bank). That is another option you must try.

To find out, open an account on a Thai bank and then do 4 different transfers

- transfer in home currency, cost to the sender

- transfer in home currency, cost to the receiver

- transfer in Baht, cost to the sender

- transfer in Baht, cost to the receiver

and find out which option is best for your situation.

As a banker, we like the first way best (send in home currency, cost to sender)... gives all profit to us

banker or wanke_r

[JohnC]

Trying to do a comparison on international transfers is complicated by the date and time of transfer due to currency fluctuations, however to clarify the situation that the original op asked I have done some comparisons from my own receipts from Citi Bank UK over the past four months using three baselines, the historical forex rate on a given date, the Bangkok Bank rate on the same date and the actual rate received in my Bangkok Bank on that date.

Forex Rate Received Citi Bangkok Bank

June 22 49.11 48.53 48.64

July 22 48.60 47.28 47.92

Aug 22 49.22 48.39 48.39

Sept 47.38 47.02 46.77

The average difference extrapolated over a twelve month period based on 100 pounds is 54 baht whilst a basic state pension of 102 pounds per week would cost you 642baht per year! given that a swift transfer is now a minimum of 25 pounds at today's rates this would be 1195 baht! per transfer, I incur no charges from either Citi Bank or Bangkok Bank and can only assume they make their profit somewhere on the money market between receiving the lump sum for all government payments and them actually transferring to the recipients account. As I have internet banking with the Bangkok Bank I find this both the cheapest and easiest way to receive my private pension as I then pay my bills online and if I need cash then there are plenty of Bangkok Bank ATM s around and I do not incur any withdrawal charges. Incidentaly I used to have this pension paid into the Nationwide BS but since last year the have introduced a 2% plus one pound charge for all foreign withdrawals therefore on a state pension quoted above you would pay 3.04 pounds per month giving an annual fee of 36.48! I am due my UK state pension in just over six months and have already decided to pay it direct to my Bangkok Bank via Citi Bank and thereby avoiding both charges and hassle in transferring money.

[giddyup]

Do you get any increases using this system or is your pension froze ? what is your status expat, uk resident ?

Your Pension is frozen at the rate when you start to collect it. Thailand is not one of the reciprocal countries so it's frozen no matter how you collect your pension.

Not sure about my status.

To be a UK resident, and get Pension increases, you need a UK address and live in the UK a certain numberer of moths per year.

Thank God I get an Australian pension, indexed to the CPI twice a year.

[nong38]

Koppite. I am assuming you are at or near Merseyside if so I cannot help you with alternative, if one the other hand you are close to the "Smoke" I may have an alternative for you which would be cheaper, so let me know.

[Daffy D]

Thank God I get an Australian pension, indexed to the CPI twice a year.

Thats very nice But:-

As I understand it, unless it has changed, you have to be in Australia for 2 years to qualify for the pension.

That means if you are living in Thailand when you apply for your pension you have go go back and live in Aussiland for 2 years to get your pension

At least us Poms living here already can get our pensions without having to return to Pommyland

I think the cost of going to and living back in the old country for two years is going to be much more than the small amount if annual increase.

[poanoi]

I'm just using the ATM when i need, and on occasion i go into the bank using my visa card

[giddyup]

Thank God I get an Australian pension, indexed to the CPI twice a year.

Thats very nice But:-

As I understand it, unless it has changed, you have to be in Australia for 2 years to qualify for the pension.

That means if you are living in Thailand when you apply for your pension you have go go back and live in Aussiland for 2 years to get your pension

At least us Poms living here already can get our pensions without having to return to Pommyland

I think the cost of going to and living back in the old country for two years is going to be much more than the small amount if annual increase.

That's true, depending on how long you have been out of the country, but I was already getting my pension before living here permanently. So in 10 years I would be getting approx. double of what I was getting when I arrived, whereas the UK residents are still getting the same. Take into account the cost of living increases that will occur in Thailand in 10 years and the UK pensioners might be struggling to survive. Assuming that the UK can even afford to pay a pension in 10 years.

Edited October 7, 2011 by giddyup

[Kwasaki]

first of all you must inform the international pension service that your moving abroad tel.no.01912-187777,they will pay it direct to your chosen bank,or if you still have a bank account in the uk have it paid into it,and trans.once a year if conveiniant,that way you trans to thailand when the rate of ex.is favourable and you will only pay swift trans.once a year and a small fee this end,if you do this make sure its trans to thailand in sterling.if you go for the trans.every month you can bet you will be hit with thai banks either skimming a bit off the ex.rate or a conversion fee or both.

thanks for your help

About 3 months before you get your pension you will get info and paperwork to fill out and can tell them what you intend to do on receiving a retirement pension.

I will add that once you have chosen the bank of choice you cannot change it until the next year.

There have been many threads on this subject and for me what ' Daffy D ' says and does is a 100% correct and the best way for me.

Yes the pension is frozen for living in Thailand but you can go back to England for a certain amount of time if you wish, which would have to be a least a year or more and in view of the rises the UK pensions get it probably wouldn't be worth the bother at least for a long time.

Personally I have opened in my sole name a Bangkok bank account and the International pension service will pay my UK pension into this.

You can use this monthly pension payment amount to add up to the amount you require for your 1 year extension application whether for retirement or marriage.

[wandrinstar]

Do BKK Bank pay direct into a given Provincial Acc No,or does it go to Bkk first where they manage to delay transfer to your provincial branch. ?.

[wandrinstar]

As for Meatboys skimming comment Bkk Bank found a way round that,i transfered a bucketfull from my Swiss acc and they lost it in Cyberspace for 3 weeks before going into my Provincial Acc , i got compensated , but nothing like the amount it would have cost me to borrow that amount of money on a short loan.

[JohnC]

Do BKK Bank pay direct into a given Provincial Acc No,or does it go to Bkk first where they manage to delay transfer to your provincial branch. ?.

No sure way of knowing I just know that my payment appears in my local Bangkok Bank normally within two days of the original payment date in the UK

[wandrinstar]

Thanks for that,so if i give my Bkk Provincial Acc No to the Pension Folks back home, that should be O.K..

[JohnC]

Yes, they will pass it to Citi Bank who will pay it into your local account.

[wandrinstar]

Who is City Bank, im out of touch with Brit Banks.Where do they come in.?.

[JohnC]

http://www.citibank.co.uk/ Used by UK government departments to facilitate all pension payments etc to foreign accounts. They will write to you giving you your account details used to transfer your payments, no action needed on your part they are purely the handling bank.

[wandrinstar]

Nice and clear John, perhaps you could give Bkk Bank a lesson in Waffle Free Replies .They are much improved these days, but why do they keep promoting their finest, and replacing them with a Grange Hill Replica

[klons]

From which country? Private or State pension? The answers to those questions make a lot of difference.

from england and its a state pension

Transfer money from the UK to Thailand

A cost-effective way to transfer money from the UK to Thailand

Whether you would like to send or receive money from UK to Thailand, you can choose a cost effective way to transfer your funds through Bangkok Bank London branch, using the UK BACS system.

http://www.bangkokbank.com/Bangkok%20Bank/Personal%20Banking/Transfering%20Funds/Transferring%20into%20Thailand/Receiving%20Funds%20from%20UK/Pages/Receiving%20Funds%20from%20UK.aspx

[wandrinstar]

But why bother if its a U.K. State one and you have a Bkk Bank Acc here .As John said , City Bank does it.

[Kwasaki]

But why bother if its a U.K. State one and you have a Bkk Bank Acc here .As John said , City Bank does it.

He is referring to the private pension payment I reckon which is something I have got to sort out yet, the state one is not a problem.

[JohnC]

He is referring to the private pension payment I reckon which is something I have got to sort out yet, the state one is not a problem.

Actually it was a government war pension but the same applies for the state pension which I will be doing next year, using the bacs system incurs SWIFT charges even if using the London Branch of the Bangkok Bank. State Pensions can be paid into your local Thai Bank by the Pension Service who use Citibank Uk as their clearing bank with no charges.

[Kwasaki]

He is referring to the private pension payment I reckon which is something I have got to sort out yet, the state one is not a problem.

Actually it was a government war pension but the same applies for the state pension which I will be doing next year, using the bacs system incurs SWIFT charges even if using the London Branch of the Bangkok Bank. State Pensions can be paid into your local Thai Bank by the Pension Service who use Citibank Uk as their clearing bank with no charges.

Yes that London branch Bangkok Bank arrangment don't look that good, why would I pay £15 when I can use First Direct over the phone get it sent to my Thai bank for £9 through swift.

Seeing as my private pension was sort off linked to my government one, I am hoping it will come along with the state one.

They are not wanting to be too helpful at the moment, they say please wait until it is nearer your time and that I will be getting my info paperwork about Feb'12.

sera', sera'.

Edited October 9, 2011 by Kwasaki