Bank Deposit Insurance

[parallaxtech]

I learned something interesting from my bank today (purple one starting with "S"). All fixed deposit savings accounts (terms of 3,6,12 mos) are not guaranteed by the bank or Thai government. Regular savings accounts (immediate withdrawal) still have a guarantee up to 1MB. I asked the bank officer if they have ever had a problem with missing funds from these accounts and she of course said never. I would like to hear from anyone out there with one of these accounts whether they are concerned or not.

[Boater]

Never any missing funds from my scb .. But there internet banking is shocking ,

[notmyself]

I'm not concerned. I consider every single Baht I have or bring into Thailand to be lost, if I manage to use that money then I consider it a bonus.

[yoshiwara]

The problem in Thailand is not so much whether you have insurance or not. It is the horrible thought that one day you might have to navigate the Thai legal system.

[flare]

Fixed deposits are covered by the DPA- it used to be for up to 50mil baht, but it will drop to 1mil baht in August- if you check their website, you will see that your bank is listed.

Edited June 1, 2012 by flare

[chiang mai]

The OP has been misinformed regarding depsoit protection in Thailand, fixed term depsoits are covered.

[parallaxtech]

I found this on an old forum:

Deposit Insurance Act

24 June 2008

The Deposit Insurance Act, taking effect on 13 February 2008, establishes a Deposit Insurance Agency to guarantee depositors' funds in the event of a bank bankruptcy. The Agency will reduce the amount insured for each depositor for all deposits insured in the first year, to a maximum insured of 100 million baht the second year, 50 million baht the third year, 10 million baht the fourth year, and 1 million baht the fifth year. According to sources, the act is perceived by many as a means of strengthening consumer confidence in the Thailand financial system.

http://thailawforum....s-June3-08.html

This seems to cover your money in the case of bankruptcy. Other Thais have told me that on the news they saw where bank employees have stolen money from accounts and account holders were not reimbursed for the loss. If anyone has any personal experience of a Thai bank or employee stealing their money please reply.

[chiang mai]

You shouldn't get too excited about funds magically disappearing from your account, in my nine years here I've never had any such thing happen and where reports have appeared, it's usually come from someone three bar stools down who heard of someone .......! Any Thai's who have reported such things are almost certainly trying to cover up something else such as a relative who "borrowed" money without permission or a customer who had a Lao khao moment.

[parallaxtech]

Thanks, CM, I feel better now. I transferred money from a US account to take advantage of the 3.5% interest vs 1% in the US and I wanted to make sure my smart move didn't turn out to be a disaster.

[Postmaster]

Could you tell me about the 3.5 % deal. Was this with that 'S' Bank ? What was the name of the account with them or was it a fixed term bond without access to your funds during the duration of the deal ?

Thanks

[MJCM]

Fixed deposits are covered by the DPA- it used to be for up to 50mil baht, but it will drop to 1mil baht in August- if you check their website, you will see that your bank is listed.

Can we have a Link please ?

Edit: //

Found the info in post #7

Edited June 1, 2012 by MJCM

[parallaxtech]

PM: S bank 3.3% for six months or 3.7% for 12 mos fixed. Last month I got 4.2% fixed for one year so you have to check with them monthly.