Bank Savings Interest Rates

[Briggsy]

My standard savings a/c at SCB now pays 0.5%. Last time I checked it was 0.625%. There must have been a central bank interest rate drop when I wasn't paying attention.

[chiang mai]

CIMB 2.8% for 9 months.

[nong38]

With reference to the charges I have quoted as (krungsri) they do not show up anyway apart from in the paperwork you sign (have seen on occassions),its on the prospectus and here is an eg ( for fixed income fund KFFIF6M7 fund) on page 2.

Fees charged to the fund ( % per year of NAV).

Management fee 1.5%

Trustee fee 0.07%

Registrar fee 0.15%

Other expenses 0.10%

Total not to exceed 1.82%

Fees charged to unitholders ( % of transaction amount)

Subscription fee ( front end ) none.

Redemption fee ( back end ) none.

Switching fee none.

The fee can affect the return to be recived by investors. Therefore,, the investors should study the details about such fee before making investment.

That is copied direct and you can make you will of it, but to my mind the banks are not doing business on your behalf without making something out of it.

Today when I look at a 6 month offer sent to me it says 2.6% headline, somewhere there will be .91% coming off which then does not look so good to me, buyer beware, its up to you. As for me the mee tae dai looks a lot more simple wityh average over the 8 months of 2.75%b and I can claim the tax back. All my assets are in the same place so the wife does not have race round town, for .5% I think it suits me.

Other situations are different, we all have different scenarios, just look out for those charges, I used to work in a bank and they dont anything for nothing.

Edited June 27, 2014 by nong38

[chiang mai]

I haven't read through all the preceding pages in detail but I have glanced at them, just to be clear, what you're describing is an investment account and is no way shape or form related to the deposit accounts or fixed term investments which have been the main stay of this thread thus far - just so that new and existing members are very clear about that..

[KittenKong]

With reference to the charges I have quoted as (krungsri) they do not show up anyway apart from in the paperwork you sign (have seen on occassions),its on the prospectus and here is an eg ( for fixed income fund KFFIF6M7 fund) on page 2.

Fees charged to the fund ( % per year of NAV).

Management fee 1.5%

Trustee fee 0.07%

Registrar fee 0.15%

Other expenses 0.10%

Total not to exceed 1.82%

This is for a bond or unit trust or ETF or some other structured investment.

It has nothing whatsoever to do with any fixed time deposit or savings account such as the ones discussed in this thread. You are comparing apples and oranges.

[JAS21]

With reference to the charges I have quoted as (krungsri) they do not show up anyway apart from in the paperwork you sign (have seen on occassions),its on the prospectus and here is an eg ( for fixed income fund KFFIF6M7 fund) on page 2.

Fees charged to the fund ( % per year of NAV).

Management fee 1.5%

Trustee fee 0.07%

Registrar fee 0.15%

Other expenses 0.10%

Total not to exceed 1.82%

Fees charged to unitholders ( % of transaction amount)

Subscription fee ( front end ) none.

Redemption fee ( back end ) none.

Switching fee none.

The fee can affect the return to be recived by investors. Therefore,, the investors should study the details about such fee before making investment.

That is copied direct and you can make you will of it, but to my mind the banks are not doing business on your behalf without making something out of it.

Today when I look at a 6 month offer sent to me it says 2.6% headline, somewhere there will be .91% coming off which then does not look so good to me, buyer beware, its up to you. As for me the mee tae dai looks a lot more simple wityh average over the 8 months of 2.75%b and I can claim the tax back. All my assets are in the same place so the wife does not have race round town, for .5% I think it suits me.

Other situations are different, we all have different scenarios, just look out for those charges, I used to work in a bank and they dont anything for nothing.

May I respectfully suggest that you stick to a Fixed Rate Account ... no charges ... you worked in a bank and don't understand the difference in these products ... what department were you involved with, it had a door

Edited June 27, 2014 by JAS21

[chiang mai]

In fact, I started this thread two years ago solely with that idea in mind, fixed rate and savings accounts only, no investment or hybrid accounts, please.

[meatboy]

With reference to the charges I have quoted as (krungsri) they do not show up anyway apart from in the paperwork you sign (have seen on occassions),its on the prospectus and here is an eg ( for fixed income fund KFFIF6M7 fund) on page 2.

Fees charged to the fund ( % per year of NAV).

Management fee 1.5%

Trustee fee 0.07%

Registrar fee 0.15%

Other expenses 0.10%

Total not to exceed 1.82%

Fees charged to unitholders ( % of transaction amount)

Subscription fee ( front end ) none.

Redemption fee ( back end ) none.

Switching fee none.

The fee can affect the return to be recived by investors. Therefore,, the investors should study the details about such fee before making investment.

That is copied direct and you can make you will of it, but to my mind the banks are not doing business on your behalf without making something out of it.

Today when I look at a 6 month offer sent to me it says 2.6% headline, somewhere there will be .91% coming off which then does not look so good to me, buyer beware, its up to you. As for me the mee tae dai looks a lot more simple wityh average over the 8 months of 2.75%b and I can claim the tax back. All my assets are in the same place so the wife does not have race round town, for .5% I think it suits me.

Other situations are different, we all have different scenarios, just look out for those charges, I used to work in a bank and they dont anything for nothing.

if as you say you have experience of working in a bank,so you should know that staff in thai banks are programed to sell you not what you ask for, same as a d.i.y.store [this one is better] yes it is for the banks but not for you.i don't understand why you want to complicate your savings by opening accs.that you have a job to understand. as I have the past 4-5yrs.had fixed accs.ranging from lowest 2.85% short term to 3.65% being the longest 18months.i and the wife are currently holding fixed terms.of 3.30%,3.50%.3.20% and 3%.with no fees whatsoever,only the withholding tax.which you get back.and don't forget you can withdraw your savings any time you like subject to loss of some of the interest.

[chiang mai]

"mee tae dai looks a lot more simple with average over the 8 months of 2.75%b and I can claim the tax back" - my understanding is that's a savings account and not a fixed rate/term product that allows two withdrawals per month, if that's correct then tax cannot be reclaimed.

[AyG]

"mee tae dai looks a lot more simple with average over the 8 months of 2.75%b and I can claim the tax back" - my understanding is that's a savings account and not a fixed rate/term product that allows two withdrawals per month, if that's correct then tax cannot be reclaimed.

The original poster is confusing mee tae dai (a savings account with limited withdrawals, currently offering 2.3%) with Krung Sri's 8 month fixed, step up interest rate account which averages out at 2.75% over the eight months.

Tax can potentially be reclaimed on both types of account. Term or savings, it makes no difference.

[mania]

Remember no taxes are taken out of the mee tae dai because it

is not a fixed product which automatically has taxes taken.

Of course taxes are taken out of any savings type account that receives more than 20k baht interest

per calender year but it is easy to watch & when you reach 19k add another account,,,even same type

at same branch & move your funds. This is allowed & is what I do.

I know it is a loophole & may be closed some day but it was the bank that suggested it to

me & I have done so ever since.

Edited June 28, 2014 by mania

[chiang mai]

Remember no taxes are taken out of the mee tae dai because it

is not a fixed product which automatically has taxes taken.

Of course taxes are taken out of any savings type account that receives more than 20k baht interest

per calender year but it is easy to watch & when you reach 19k add another account,,,even same type

at same branch & move your funds. This is allowed & is what I do.

I know it is a loophole & may be closed some day but it was the bank that suggested it to

me & I have done so ever since.

Actually no, I have a preferred savings account at UOB which pays 2%, I use the account for day to day spending - no tax is deducted even after the 20k threshold is exceeded, the tax element is somehow built into the product and presumably paid by the bank else based on a tax free backing product, or similar. Regardless, from the consumers viewpoint it appears tax free and I've seen other similar products elsewhere.

EDIT: sorry I'm wrong on this point, I just checked the UOB website which tells a different story on tax than I was told by the branch, tax is deducted after 20k, I'll have words with the branch

Edited June 28, 2014 by chiang mai

[mania]

Actually no, I have a preferred savings account at UOB which pays 2%, I use the account for day to day spending - no tax is deducted even after the 20k threshold is exceeded, the tax element is somehow built into the product and presumably paid by the bank else based on a tax free backing product, or similar. Regardless, from the consumers viewpoint it appears tax free and I've seen other similar products elsewhere.

You know now that you reminded me yes I have seen no tax adverts on some accounts.

Like you say it must be built in but would be interesting to hear how they calculate it in.

Edited June 28, 2014 by mania

[chiang mai]

Actually no, I have a preferred savings account at UOB which pays 2%, I use the account for day to day spending - no tax is deducted even after the 20k threshold is exceeded, the tax element is somehow built into the product and presumably paid by the bank else based on a tax free backing product, or similar. Regardless, from the consumers viewpoint it appears tax free and I've seen other similar products elsewhere.

You know now that you reminded me yes I have seen no tax adverts on some accounts.

Like you say it must be built in but would be interesting to hear how they calculate it in.

I had to edit my post after checking, I was wrong on the UOB point.

[Oorinara]

Gov't Savings Bank (GHB) High Savings offers 2.75%. Non fixed term.

http://www.ghbank.co.th/en/services_loan_detail.php?cms_id=136&cms_cate_id=6&parent=services_loan.php?cms_cate_id=6

http://www.ghbank.co.th/en/content.php?id=40

Min and max amount on the web seems to be inaccurate, though. Offer ends by 30 Jun, but hope it be extended or another similar offer comes in.

Sent from my iPhone using Thaivisa Connect Thailand

[Oorinara]

Me by TMB offers 3.25% to 3% for non fixed term account, but necessitates Thai national ID to open accounts.

https://www.mebytmb.com/home

https://www.tmbbank.com/personal/deposits/nofixed/tmb-no-fixed-account-en.php

Cannot appreciate discrimination by nationality rather than residency.

Sent from my iPhone using Thaivisa Connect Thailand

[chiang mai]

Me by TMB offers 3.25% to 3% for non fixed term account, but necessitates Thai national ID to open accounts.

https://www.mebytmb.com/home

https://www.tmbbank.com/personal/deposits/nofixed/tmb-no-fixed-account-en.php

Cannot appreciate discrimination by nationality rather than residency.

Sent from my iPhone using Thaivisa Connect Thailand

Most of the banks have similar accounts that farangs can't open, they are designed for older Thai retirees, or so I'm told.

[AyG]

Of course taxes are taken out of any savings type account that receives more than 20k baht interest

per calender year

AFAIK, it depends upon the account type. There are tax-privileged accounts that don't withhold tax and have a maximum amount of investment/interest, and these are clearly promoted as such. However, for ordinary savings accounts, tax is deducted from the very first Baht of interest - not once the accumulated interest reaches 20,000 Baht.

[meatboy]

wife has just come home 2.5hrs.closing one acc.and opening another,LH bank 3.5% over 15months is the best you can get till end of jan.so its my turn on tues,the interest is paid monthly and the tax certificate you get at the end of term.

well cm.what about this the fixed acc.what just matured thai gov.savings bank over 399days paid 3.30% and did not withhold any tax

I wonder cm.can you explain this.dec.2012 me and the wife opened 2 fixed term accs.with TGSB.advertized at 3.30% over 399days.on maturity there was no tax deducted,this I found very strange as this was the first time.as 3.30 was much much better than any of the other banks this was a bonus.on their web site I saw this,3.30% FIXED AQUIVELANT TO 3.75%

before tax.even today they still advertise a product using the same wording.

so my question is was the actual rate 3.75% but took the 15% tax.there was nothing on our passbooks to indicate this.

because never mind which way you look at it if your a tax payer they get away without paying the tax,

or as my wife and me are non tax payers we are getting robbed.

[chiang mai]

wife has just come home 2.5hrs.closing one acc.and opening another,LH bank 3.5% over 15months is the best you can get till end of jan.so its my turn on tues,the interest is paid monthly and the tax certificate you get at the end of term.

well cm.what about this the fixed acc.what just matured thai gov.savings bank over 399days paid 3.30% and did not withhold any tax

I wonder cm.can you explain this.dec.2012 me and the wife opened 2 fixed term accs.with TGSB.advertized at 3.30% over 399days.on maturity there was no tax deducted,this I found very strange as this was the first time.as 3.30 was much much better than any of the other banks this was a bonus.on their web site I saw this,3.30% FIXED AQUIVELANT TO 3.75%

before tax.even today they still advertise a product using the same wording.

so my question is was the actual rate 3.75% but took the 15% tax.there was nothing on our passbooks to indicate this.

because never mind which way you look at it if your a tax payer they get away without paying the tax,

or as my wife and me are non tax payers we are getting robbed.

I'm sure it's a marketing thing, I'm almost certain the tax will have been paid but you just never saw it - and since it was 399 days that means two tax years so it was 15% times two, times two people. Having said that, I can't get the math to come back to your figures, anyone?

[meatboy]

further to my above post I found a thread on this acc.11-10-2012 thai government savings bank.thai visa.

it seems that most were confused by the ad.but it could be down to google's translation.

they translated personel customers tax WILL be deducted.

but it should have read business customers tax will be deducted not personel.

the actual ad.is displayed on the posting.

on the % it was 3.30% affective apr[3.63%] not 3.75%

Edited June 28, 2014 by meatboy

[meatboy]

further to my above post I found a thread on this acc.11-10-2012 thai government savings bank.thai visa.

it seems that most were confused by the ad.but it could be down to google's translation.

they translated personel customers tax WILL be deducted.

but it should have read business customers tax will be deducted not personel.

the actual ad.is displayed on the posting.

on the % it was 3.30% affective apr[3.63%] not 3.75%

sorry CMbut I cant get my head around this.just been on their web site,www.gsb.or.th and they have an ad.

2.10% for 4months then before tax in brackets 2,47% before tax.

I wouldn't be concerned but the diff.between 3.30 and 3.63 on our deposits amount to 19,000bht or 8cases of cider

[chiang mai]

further to my above post I found a thread on this acc.11-10-2012 thai government savings bank.thai visa.

it seems that most were confused by the ad.but it could be down to google's translation.

they translated personel customers tax WILL be deducted.

but it should have read business customers tax will be deducted not personel.

the actual ad.is displayed on the posting.

on the % it was 3.30% affective apr[3.63%] not 3.75%

sorry CMbut I cant get my head around this.just been on their web site,www.gsb.or.th and they have an ad.

2.10% for 4months then before tax in brackets 2,47% before tax.

I wouldn't be concerned but the diff.between 3.30 and 3.63 on our deposits amount to 19,000bht or 8cases of cider

2.47% minus 15% is 2.0985% or 2.10% rounded. What they are saying is that they will pay you 2.10% tax free which equates to an interest rate of 2.47% before tax. The 2.47% before tax number is a bit misleading, again, it's a marketing thing to make you think you're getting a better rate than you actually are.

[nong38]

Firstly, I was suggesting that what ever investment you look at you look what charges are involved if any, they are not always obvious, then there is the translation. I am told that I will pay tax on mee tae dai whilst other investment products I will not, I can, of course claim the tax back.

Secondly regarding working for a bank, it was a long time ago when the TSB was a regional bank run by the Govt, they never had the products to sell they do today. What I was trying to illustrate was that banks have to make money to pay the running costs of the bank and they dont anything for nothing. In those days the TSB had just 2 accounts and ordinary account and a special investment account. The ordinary account paid 2.5% and was tax free, when you had £50 in it you open a special investment account which was taxable but still gave you a better return. The bank paid all the running costs of the bank by investing in 3% Govt bonds and paying the investor 2.5% that .5% did the trick.

Investors could have bought the bonds themselves, if they had known how to, but in those days they did not.

Today banks, investment vehicles all have charges or they would not be in business, in the UK it is now much simpler to see what they are, here it is not, so look at your prospectus whether its online in paper and hope the translation is correct, it will be your fault if it is not.

I found the info about mee tae dai on here in march and I am pleased that I did, that is what the thread is for to alert us things, that is what I have been trying to do with charges, if there are no thats fine, just look, dont shoot the messenger.

I gave you an expample of where to look, maybe it was your orange or apple, maybe be not.

[Pib]

Of course taxes are taken out of any savings type account that receives more than 20k baht interest

per calender year

AFAIK, it depends upon the account type. There are tax-privileged accounts that don't withhold tax and have a maximum amount of investment/interest, and these are clearly promoted as such. However, for ordinary savings accounts, tax is deducted from the very first Baht of interest - not once the accumulated interest reaches 20,000 Baht.

I've never had tax withheld from my ordinary savings accounts. Or at least I've never seen a tax withheld entry in my regular savings account passbook like you see when 15% tax was withheld on my fixed savings accounts. Seems I've always read tax on a ordinary savings account doesn't start getting withheld until you reach the Bt20K interest earned per year level.. I just know on my numerous regular savings accounts I have and have had over the years there has never been a tax withheld entry in my passbooks/shown on my ibanking transactions; only an interest earned entries.

Edit: doing some googling found below quote from page 5 in a tax guide at this Link which seems to support what I've read now and then at other places. Where it says "savings deposits" I'm assuming that to mean a regular savings account and not a fixed saving.

INTEREST

Interest income derived by a resident individual may, at the taxpayer’s election, be excluded

from the computation of income tax provided that tax at 15% is withheld at source.

However, the following forms of individual’s interest income are exempt from any tax:

• interest on bonds or debentures issued by a government organisation

• interest on saving deposits in commercial banks if the aggregate amount of

interest received is not more than Baht 20,000 during a taxable year.

Edited June 28, 2014 by Pib

[Pib]

Here's a question. Has anyone ever got the fixed account 15% withholding tax "waived" as implied by the Bangkok Bank fixed account statement below? And here's the Link to their fixed account webpage.

For tax year 2012 and when applying for my fixed account withholding tax refund I did not have a tax number.. .and none was issued...the revenue office processed my refund without any tax number specific to me. Now last year, tax 2013, when I went to the tax revenue office it was only at the very final step of the filing that they said I needed a tax number...5 minutes later they issued me a tax number....they wrote it on the tax refund request...and my refund went through fine just like for tax year 2012. So, as of Jan 14 I have a tax number for future refund filings.

Now my latest fixed account with Bangkok Bank was opened late last year--before I had a tax number...and this account will not mature until Dec 14/this year. When I visit the Bangkok Branch where I have this particular fixed account in another two months or so I plan to ask more questions about their statement below regarding the possible waivering of the 15% withholding tax if providing your tax ID. But until then, has anyone got the 15% withholding tax waivered on their fixed account simply by providing their tax ID?

Terms and Conditions

Retail consumers are liable for a withholding tax of 15% on the interest received on a deposit account. It will be paid automatically by Bangkok Bank.

If you give us your tax ID, you may be eligible for a waiver of tax.

[meatboy]

Here's a question. Has anyone ever got the fixed account 15% withholding tax "waived" as implied by the Bangkok Bank fixed account statement below? And here's the Link to their fixed account webpage.

For tax year 2012 and when applying for my fixed account withholding tax refund I did not have a tax number.. .and none was issued...the revenue office processed my refund without any tax number specific to me. Now last year, tax 2013, when I went to the tax revenue office it was only at the very final step of the filing that they said I needed a tax number...5 minutes later they issued me a tax number....they wrote it on the tax refund request...and my refund went through fine just like for tax year 2012. So, as of Jan 14 I have a tax number for future refund filings.

Now my latest fixed account with Bangkok Bank was opened late last year--before I had a tax number...and this account will not mature until Dec 14/this year. When I visit the Bangkok Branch where I have this particular fixed account in another two months or so I plan to ask more questions about their statement below regarding the possible waivering of the 15% withholding tax if providing your tax ID. But until then, has anyone got the 15% withholding tax waivered on their fixed account simply by providing their tax ID?

Terms and Conditions

Retail consumers are liable for a withholding tax of 15% on the interest received on a deposit account. It will be paid automatically by Bangkok Bank.

If you give us your tax ID, you may be eligible for a waiver of tax.

I have seen that at other banks but I have shown them my tax id,and the wf.has but bkkb.and scb,and lh.have still taken tax.as I posted 17jan.this yr.only tgsb.are the only ones that did not withhold tax.

[Choonpon]

Bangkok bank now offering 2.8% for 11 months FD.

[falang07]

SCB fixed deposit at 4% for 15 months

[falang07]

odd, please delete

Edited July 2, 2014 by falang07