Random RCBO Trip...What Next?

[rotherman]

Hi there - I have just got my first 12 month extension - based on a bank deposit of 800,000 baht. Now as I understand, this amount needs to be in my account for 3 months prior to my next application for a extension - ie. in 9 months time. This amount is currently sitting in a basic savings account with Bangkok bank earning 0% interest. Now I was wondering what you expats out there normally do with this money? I was thinking of putting it in a 9 month fixed term deposit (or 6 months + 3 months) - and then return the money into my basic savings account in time for my next visa extension (as I believe a fixed term deposit account is not acceptable as ready cash to immigration, even though it can be drawn out with loss of interest).

If this idea is feasible - what are the best banks/deals at the moment for non thais - I have heard that around 2.5 % interest is possible for farangs. Cheers.

[Darrel]

Mine is in a 15-month step-bond with Kbank that pays about 3.75%. It will still be in this bond when my visa extension comes up for renewal in August.

Most Immigration officers will accept time-deposits as long as the money is accessible at all times. In Pattaya they certainly will, though if you live in the back of beyond you may want to check with your local office first.

As you mention, most if not all Thai time-deposits do allow instant access to the funds though there may be some interest penalty if you do withdraw early. Of course this is not relevant to the Immigration officer.

At the very least a "no-fixed" account with TMB pays 2.5% and is instant access at all times.

Edited January 9, 2012 by Darrel

[rotherman]

Hi Darrel - the 15 month step-bond sounds interesting, although I cant find any info on it on Kasikorns website - I take it there are withdrawal facilities that enable it to be used for visa extensions then? and yes, I do live in Pattaya, so does that mean that fixed terms are acceptable, even though you would lose interest if you did make a withdrawal.

[Naam]

Hi Darrel - the 15 month step-bond sounds interesting, although I cant find any info on it on Kasikorns website - I take it there are withdrawal facilities that enable it to be used for visa extensions then? and yes, I do live in Pattaya, so does that mean that fixed terms are acceptable, even though you would lose interest if you did make a withdrawal.

Kasikorn offers money market fund, maturity 3 months, yield 3.5%, no withholding tax.

[rotherman]

Regarding TMB bank - I copied the following from their website regarding "term deposit" accounts - the rate on a 12 month is 2.25%, which is the same rate as a "no fixed" account. This would appear acceptable to immiragtion, would it not.

• Unlimited withdrawal is allowed at the branch where the account is opened and the other branches within the same clearing house or the same province.
  
• In the category of 3, 6 and 12 terms, partial withdrawal can be made.
  

[Darrel]

Hi Darrel - the 15 month step-bond sounds interesting, although I cant find any info on it on Kasikorns website ...

It was only available for a few weeks last year and was a good deal at the time as rates were lower then.

The 3-month money market fund mentioned by Naam may be more suitable for your needs at the moment, but I dont know anything about it.

[rotherman]

Does anyone know if there is TAX to pay on Thai bank account interest - for farangs ?

[Darrel]

The bank will deduct 15% withholding tax at source on deposit accounts. This can be claimed back by those with no tax liability.

[ludditeman]

TMB 2.25% no fixed account don't take out tax

BKB 3.25% 7 month fixed term deposit account do take out 15% tax.

Both appear acceptable to immigration.

(I would go with BKB, it works out at just under 3% after tax)

@Darrel

TMB reduced the interest rate a month ago.

Edited January 9, 2012 by ludditeman

[rotherman]

Thanks all for your help - I am thinking of doing the bkb 7 month deal - as my savings a/c is already with them so the transfer should be easy - then review the situation in 7 months time - the interest rate should have changed by then - I think claiming back the tax sounds like it could be a nightmare!

[ludditeman]

Thanks all for your help - I am thinking of doing the bkb 7 month deal - as my savings a/c is already with them so the transfer should be easy - then review the situation in 7 months time - the interest rate should have changed by then - I think claiming back the tax sounds like it could be a nightmare!

I never bother, I'm living in their country, I don't mind paying a little tax.

[thrilled]

I understand there are some banks that will pay near 5%,but it has to be A million baht or more for at least 12 months,maybe even longer.

[Darrel]

@Darrel

TMB reduced the interest rate a month ago.

[Naam]

I understand there are some banks that will pay near 5%,but it has to be A million baht or more for at least 12 months,maybe even longer.

perhaps you care to elaborate on your understanding which banks? no way 12 months! 5% can be achieved for maturities of 5 years and longer.

[rotherman]

Hello again - well I started a 7 month fixed term deposit at Bangkok bank this morning at 3.25% interest (note offer ends on 16th) I was given a bank book, same as you would with a savings account, and was told withdrawals can be made at any time (with loss of interest) - I asked about re-claiming the Tax, as I have no income in Thailand - was told that they will give me a form on the maturity date to take to the tax office - which is located on Theprasit road, Jomtien. I asked whether it would take a long time - was told - same day. So on 800,000 baht - interest works at at 15,166 bht for the 7 months, TAX - 2,275 Baht - so definitely an amount worth claiming back - if it is indeed that simple! Unlike ludditeman, I do not want to pay money to the Thai government, that I dont have to!

[chiang mai]

The bank will deduct 15% withholding tax at source on deposit accounts. This can be claimed back by those with no tax liability.

No, the banks only deduct interest at source on deposit accounts if the ammount of interest exceeds 20k, time deposit accounts however are taxed regardless of the interest.

[chiangmaibruce]

I asked about re-claiming the Tax, as I have no income in Thailand - was told that they will give me a form on the maturity date to take to the tax office - which is located on Theprasit road, Jomtien. I asked whether it would take a long time - was told - same day.

If you search in the web site of the Pattaya Expats Club you should find a paper on claiming back withholding tax in pattaya. there have also been threads in thaivisa on this topic - the most recent one being chiang mai-based (try a forum search on "withholding" and see if it/others turn up)

[AbeSurd]

If you search in the web site of the Pattaya Expats Club you should find a paper on claiming back withholding tax in pattaya. there have also been threads in thaivisa on this topic - the most recent one being chiang mai-based (try a forum search on "withholding" and see if it/others turn up)

There are two English-speaking expat clubs in Pattaya.

I think you'll find that the paper you're talking about is on Pattaya CITY Expats Club's website (as opposed to Pattaya Expats Club).

http://www.pattayaci...nk_interest.pdf

[12DrinkMore]

Hello again - well I started a 7 month fixed term deposit at Bangkok bank this morning at 3.25% interest (note offer ends on 16th) I was given a bank book, same as you would with a savings account, and was told withdrawals can be made at any time (with loss of interest) - I asked about re-claiming the Tax, as I have no income in Thailand - was told that they will give me a form on the maturity date to take to the tax office - which is located on Theprasit road, Jomtien. I asked whether it would take a long time - was told - same day. So on 800,000 baht - interest works at at 15,166 bht for the 7 months, TAX - 2,275 Baht - so definitely an amount worth claiming back - if it is indeed that simple! Unlike ludditeman, I do not want to pay money to the Thai government, that I dont have to!

Tax is always worth claiming back.

You can only claim back the tax after the tax year has finished, so you will have to wait until early 2013 before you can do this. A relatively simple procedure and you will receive a cheque a few weeks after you submit all the forms. My local tax office is very helpful in dealing with this.

Note that unless you have explicitly asked to have the money deposited as say 100,000 * 8 separate deposits to meet the 800,000 visa requirement, you will have to withdraw the entire sum with loss of interest and then redeposit what you don't immediately need. You cannot take out say 50,000 and leave the rest on a 7 month fixed term deposit.

And Naan's suggestion of a money market fund is unfortunately not acceptable for a retirement visa, even though you can access the money as easy as a fixed term deposit, in fact easier, as you do not lose any interest on withdrawing a partial amount.

TIT