What'S The Best Bank Interest Rate In Thailand?

[rmicheald]

I bring money back from the states every year and deposit it in my Thai bank account to draw on as needed each month. Where can I get the best interest rate for the money sitting in the bank or is there a liquid investment account available in Thailand? I generally pull out between 10 and 15 thousand baht a month from the account.

Thanks in advance...

[Rimmer]

Best move this one to Banking where all the experts hang out.

[chiangmaibruce]

Clearly the answer to your question varies from one day to the next.

Google on "Bank of Thailand commercial bank interest rates" to find a page of data that is updated regularly, and then go to individual bank web sites to confirm and get specifics

[12DrinkMore]

As stated above the rates change regularly. Do a bit of homework and look around the main banks' websites.

I believe at the moment the TMB is the best deal for the type of account you are looking for, 2.5% "no fixed".

[Darrel]

I have a "no-fixed" account from TMB. It has quite a lot going for it but you should study the T&Cs before signing up, notably in relation to use with ATM/debit cards, bill payments, etc.

I do get free SMS notifications which is nice, and the ability to withdraw nationwide might be handy for some.

You can get better rates for fixed-term deposits elsewhere, but for something that allows more or less instant access at all times 2.5% isn't bad.

[CMSteve]

Thanachart(Orange) offers 2.65 for > 1mm Baht and 2.5 for <1mm Baht. This is a "no fixed" account with no limit on deposits and 2 "free" withdrawals a month. TMB would not let me open an account because I do not have a work permit.

[Darrel]

TMB would not let me open an account because I do not have a work permit.

I dont have one either. Try a different branch.

Edited November 17, 2011 by Darrel

[djayz]

i think this is what you're looking for...

http://www.bot.or.th/english/statistics/financialmarkets/interestrate/_layouts/application/interest_rate/IN_Rate.aspx

[smedly]

some of those rates are better than I'm getting at home, what's the catch ? are they taxable, I'm over 50 live here on Multple 12month type O

How safe are Thai Banks

[Darrel]

i think this is what you're looking for...

http://www.bot.or.th...te/IN_Rate.aspx

These online lists rarely (if ever) include accounts like the TMB no-fixed account, or the step account I have from Kbank. They just seem to give the basic savings/time deposit rates.

Needless to say, the accounts that aren't included in the list are the ones that seem to pay the best rates.

[Darrel]

some of those rates are better than I'm getting at home, what's the catch ? are they taxable, I'm over 50 live here on Multple 12month type O

How safe are Thai Banks

There's a withholding tax of 15% that you can reclaim, if you can be bothered.

Deposits in Thai banks will be guaranteed up to 1MB per bank per depositor next year (currently the guarantee is much higher).

[Darrel]

I'm over 50 live here on Multple 12month type O

You might want to investigate getting a retirement extension instead. It will probably save you money and will probably be much easier to get.

[TallGuyJohninBKK]

There are a couple issues....

Starting next August 2012, the Thai government insured deposit amount will be drastically reduced to 1 million baht per individual depositor per bank, even if there are multiple accounts held in one branch or different branches of the same bank.

Also, that government backing only covers in the event of the complete failure of the bank. It doesn't cover at all against internal theft or fraud that is not uncommon here in the banking industry (and elsewhere as well).

The difference is, those latter kinds of situations normally would be handled by law enforcement and the civil courts. But good luck as a farang trying to enforce your rights in Thailand if you were unfortunate enough to be victimized in that way. As best as I can tell, BTW, it's not that easy for Thais either.

As for taxes, I believe the Thai banks typically have a 15% withholding on interest earned from Thai bank accounts held by foreigners. How that gets accounted for, in the end, probably depends on the tax laws in the depositor's home country. And I'm not a tax accountant.

But be aware, the U.S. government also has special rules and reporting requirements for anyone who, at any time during the year, has more than $10,000 U.S. in total deposits in foreign accounts, and the penalties for failing to report that are very severe.

See here for info on Thailand's government bank deposits protection rules:

http://www.thailawfo...urance-law.html

See here for info on the U.S. reporting requirements for foreign bank deposits:

http://www.irs.gov/b...=148849,00.html

United States persons are required to file an FBAR if:

1. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

United States person means United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

Right now, regular liquid bank accounts in the U.S. don't pay much... But some can be found for 2+% if you look hard and avoid the major megabanks.

If you want to use a rewards checking account instead, which are offered by a lot of smaller banks and credit unions, you can earn 2.5% to 3.5% right now if you look hard. Rewards checking accounts pay higher interest based on the account holder using his bank debit card for POS purchases 10 or 12 times per month.

For me -- given the U.S. reporting hassles, the lowered Thai bank deposit insurance protections, the lack of a real legal system and the Thai tax withholding -- I'd rather stick with the better U.S. accounts.

Also, as regards Thai liquid deposit account, their rates can change with time. And the Thai Central Bank is talking lately about lowering their standard interest rate because of all the financial issues associated with the flooding disaster.

A fixed time deposit in a Thai bank would be protected from market interest rate changes during its duration, the same like a CD. But a liquid account wouldn't have that rate protection, generally speaking.

Edited November 17, 2011 by TallGuyJohninBKK

[ajahnlau]

some of those rates are better than I'm getting at home, what's the catch ? are they taxable, I'm over 50 live here on Multple 12month type O

How safe are Thai Banks

Bank Of BKK and Ayutthaya Have 3.5% FIXED from 5-12mos.

[TallGuyJohninBKK]

Yes, but the OP wanted an account where he could make withdrawals each month to fund his living expenses..

I don't know the specific accounts you're referring to above, but I don't think they allow monthly withdrawals and still pay the 3.5% rate you mentioned.

[djayz]

@ TallGuyJohinBKK: You refer to internal theft or fraud that is not uncommon in the banking industry. I've never heard of this before. Are you saying that banks / bank employees steal from our (customers) accounts? If so, how?

Edited November 19, 2011 by djayz

[TallGuyJohninBKK]

Yes, that's exactly what I'm saying... I'm not saying it happens every day. But it definitely does happen.

There have been lots of news reports of that here in past years... typically some bank employee/employees and/or their bf/spouses run some scheme by using the bank's internal systems to transfer funds to other accounts and various other kinds of account skimming fraud. Typically smaller amounts from a lot of different accounts to try to avoid notice.

I'm talking about internal/employee fraud, which is an entirely separate matter from external fraud involving ATM card skimming and similar things like that.

I remember reading one news report here where the victims were Thai depositors, they complained to the involved bank, and the bank's response was to say they weren't responsible, and it was a criminal matter, and the victims should seek redress from the police... Ya right....

[Pinot]

Let me suggest an alternative. If you open an account at Charles Schwab in the US and use their free online banking, you will be issued a debit Visa card. You can pull money from any ATM and the fees are all refundable in LOS. Easy to transfer money between an investment account and your checking account online. There is of course some risk but you can then invest that money in your checking account in a lot of things that pay better than the 2% you would be making in a Thai bank. Schwab has many no fee mutual funds and ETF's that you can sit in earning far better than 2%. Your level of risk depends what you might earn. High yield bonds can earn in the 10% range. Treasuries are in the 3% range.

Let me add that if you decide to do this use a US address and choose paperless transactions. Any relative's address will do. You can become an International Schwab customer but you won't be able to trade mutual funds and some further bs complications. Charles Schwab banking is the only way go IMO. Exchange rates are always the highest. I save $20 a month in ATM fees. If you do have a problem you can always talk to them using Skype.

[TallGuyJohninBKK]

I generally like Pinot's suggestion above, and I'm a Schwab banking and brokerage customer, because of the many good features they have for ex-pats...

But it's only fair to note: the mutual funds and high yield bond option that he's mentioned are investments where a person's principal (original funds) are not insured against market loss.

That said, when I think about the relative risks of depositing large sums in Thai banks vs. U.S. mutual funds, for example, I'm not sure which I'd consider to be the safer choice. Of course it ought to be Thai banks because they're fixed value, interest-earning accounts.

But the coming low level of Thai bank deposit insurance (1 million baht per depositor per bank starting next fall), the government's insurance scheme failing to protect against bank fraud, and a farang's relative inability in Thailand to access meaningful civil or criminal enforcement in the event of a problem, make it a much closer call for me than it ought to be.

[TallGuyJohninBKK]

@ TallGuyJohinBKK: You refer to internal theft or fraud that is not uncommon in the banking industry. I've never heard of this before. Are you saying that banks / bank employees steal from our (customers) accounts? If so, how?

This is a bit of a different subject, but related to your question...about the risks of doing business with Thai banks... See the following thread:

[TallGuyJohninBKK]

And here's some more examples on the issue of bank employee fraud/theft:

(credit card numbers seller gets info from bank employees)

[peergin]

Yes, that's exactly what I'm saying... I'm not saying it happens every day. But it definitely does happen.

There have been lots of news reports of that here in past years... typically some bank employee/employees and/or their bf/spouses run some scheme by using the bank's internal systems to transfer funds to other accounts and various other kinds of account skimming fraud. Typically smaller amounts from a lot of different accounts to try to avoid notice.

I'm talking about internal/employee fraud, which is an entirely separate matter from external fraud involving ATM card skimming and similar things like that.

I remember reading one news report here where the victims were Thai depositors, they complained to the involved bank, and the bank's response was to say they weren't responsible, and it was a criminal matter, and the victims should seek redress from the police... Ya right....

Yes, I remember a case (already quite a few years ago) where the branch manager of a Thai bank ran away with money he took from clients' accounts. There was one (Thai) lady who lost more than B 10,000,000... The bank refused responsibility until, finally, after trying "softly" for half a year, she started screaming. She wrote to the Bangkok Post which investigated the case and then printed an article on the subject listing the bank's name and the names of the bank's staff who had been rejecting responsibility. That helped. I think it took 2 weeks to get her money back. Needless to say I have never used that bank, although I have accounts with several other banks in Thailand.

[fletchsmile]

And here's some more examples on the issue of bank employee fraud/theft:

(credit card numbers seller gets info from bank employees)

And do you think these things don't happen outside Thailand? Or they don't happen in other industries?

BTW MF Global anyone?

Funnily enough Charles Schwabb as mentioned above have expressed an interest in some of MF Global's business, and used to use MF Global for certain client retail transactions. Are they really that different

Edited November 22, 2011 by fletchsmile

[TallGuyJohninBKK]

Fletch, of course these kinds of things happen in other countries besides Thailand...

But the difference is, in the places where a lot of us come from, people who do these kinds of things usually end up in jail, and the applicable laws at least try to reimburse and protect the victims...

Here, those who pull these frauds/scams often are barely punished, and the legal/banking system does almost nothing to try to reimburse and protect the victims.

That's the point, in case you missed it the first time round.

[12DrinkMore]

But the difference is, in the places where a lot of us come from, people who do these kinds of things usually end up in jail, and the applicable laws at least try to reimburse and protect the victims...

Sorry, but I do not see hoards of western bank employees being sent behind bars for the massive damage they have inflicted across Europe and the US. The debt crisis continues unabated, must be over 600 US banks that have been dissolved in the last couple of years, in the UK RBS, Northern Rock, Lloyds are utterly screwed and government owned.

There may have been the odd instance of Thai bank employees misbehaving, But in a lot of the cases I have seen or known about there has been involvement with Thai partners stealing money from accounts, which has somehow firstly been blamed on the Thai banks. Same happens all over the world.

After some fifteen years of using Thai banks I do not have a serious complaint about them. They have been fair, reasonable charges, efficient services, friendly and good exchange rates. In fact, pretty much the total opposite of any UK bank I have ever dealt with. Try and open an account in the UK compared to the hassle free system here.

I have absolutely no concern over the money I have lodged with Thai banks.

But to the initial post, the TMB "no fixed" is still the best on the market, and interest up to 10,000 Baht is paid without tax being deducted.

[TallGuyJohninBKK]

12, I think you've been drinking way to much...

Hassle free system for opening accounts here??? Maybe you should start reading the myriad of TV posts on farang getting jerked around trying to open Thai bank accounts...

As for criminals in jail, well, Bernie Madoff is sitting in federal prison. And at least in the U.S., I can pretty much guarantee you that the common bank employee who engages in fraud or stealing money from bank customers is almost certain to face a stay in federal prison... No paying off the police to walk away or skipping town there. Bank fraud is a federal crime, meaning the criminals are dealing with the FBI, not the local police, typically. Once they're caught, they rarely walk free.

As for the broader economic woes, those are systemic issues brought on by government and bank policies, and greedy and probably unsound business practices by a lot of financial folks. Not quite the same as a Thai bank employee draining the funds directly out of your account. But at least for all the banks that have failed in the U.S., depositors have been mostly protected due to a very sound government insurance program.

And apart from the criminal law system, people who have been victimized by fraud have a real right and ability to pursue civil litigation against the offenders for reimbursement and damages. When was the last time you heard of a farang in Thailand prevailing in that kind of a civil case?

In Thailand next year, the government insurance on bank deposits will fall to about $33,000 per bank per depositor... In the U.S. the comparable government insured amount is $250,000, and I'd wager the comparable amount in the UK is a fair bit more than $33,000 U.S.

So where again in the safer, more secure place to keep one's funds? Even after considering all the failings of the U.S. banking system, it's not even a close contest compared to the world of Thai banking.

[ludditeman]

But to the initial post, the TMB "no fixed" is still the best on the market, and interest up to 10,000 Baht is paid without tax being deducted.

And with the TMB 'no fixed' you can only take money out in person at the counter with bank book and passport in hand.

No cards, so chance of theft or fraud very small. And all TMB transactions give an SMS alert to your mobile instantly.

When I use my normal TMB current account (ATM card but no interest) the SMS arrives before the card is out of the machine showing withdrawal amount and remaining bank balance.

Also the TMB current account ATM card gives free withdrawals at all bank machines (cos they don't have many of their own ATMs)

Edited November 24, 2011 by ludditeman

[Darrel]

And with the TMB 'no fixed' you can only take money out in person at the counter with bank book and passport in hand.

No cards, so chance of theft or fraud very small. And all TMB transactions give an SMS alert to your mobile instantly.

Indeed. I am satisfied with mine. Though bizarrely the cashier asked me if I wanted an ATM card when I opened it.

[Darrel]

Hassle free system for opening accounts here??? Maybe you should start reading the myriad of TV posts on farang getting jerked around trying to open Thai bank accounts...

I found it extremely quick and painless to open my four accounts, with three different banks.

[Darrel]

There can be no doubt that depositor protection in Thailand can best be described as minimal when compared to that in the UK for example.

I doubt that anyone has permanently lost money due to fraud by a UK bank employee in decades.

Of course the same applies to consumer protection generally. There just isn't very much of it here.