Bank Savings Interest Rates

[chiang mai]

I'm guessing from looking at the state of global economic play, combined with reduced forecasts from BOT plus all the potentially nasty stuff going on out there currently that we can expect to see a cut in the bank rate before the end of the year. Plus it seems as though the likelihood of rate increases in the US and the UK are more wishful thinking than anything else, it might therefore be time to lock into a higher rate for a longer period, 3.25% for three years is looking more and more attractive.

[fletchsmile]

I don't see much chance of a Thai rate cut this year. The last MPC meeting was also a unanimous decision not to cut.

http://www.bot.or.th/Thai/MonetaryPolicy/Documents/MPC_62014.pdf

The focus is more on accelerating budgetary spending, and other measures such as SME support, money for farmers etc.

The next move will be up, at some point next year. Then there'll be gradual increases from there. So for me I'd rather take the 2.5% - 2.75% instant access accounts now, keep my money available, and watch for special deals.

Cheers

Fletch

[chiang mai]

I hope you are right and maybe I'm being too pessimistic by suggesting this year but the scenario I see is this:

Thailand's two main export markets are in serious difficulty, the EU looks like it's falling off a cliff and China is in for a very hard landing - tourism is already down and the prospect of Ebola threatens it further. Debt overhang nationally is likely to slow consumer spending and government stimulus can only do so much, so quickly and for so long. The US Fed intends to keep USD weak but BOT seems not to want a weaker Baht, foreign currency reserves are down 8% this year - all of which suggests that exports wont be made any cheaper.

I'm normally very bullish about Thailand and its economy but the factors that impact currently are nearly all external. Again, I hope I'm wrong.

[Oorinara]

LH Bank 3% p.a. for 15 month fixed.

http://www.lhbank.co.th/promotion/description/1496

[meatboy]

looking at the profit and loss for thai big banks.

there could be a some carrot dangling next jan 2015.

scb.q3 2013,vs. q3 2014 + 4.2%.

bbl.q3 2013, vs. q3 2014 + 6.9%.

kb. q3 2013, vs. q3 2014 +16.8%.

LH q3 2013, vs. q3 2014 + 120.8% no its not a missprint.so they are doing something right.thats why we went with them this yr.their rates were better.

results for last month for bbl -2.3%

tmb continue to show good results.

but bay,tisco,kiatnakin are not so good all posting losses.

[binnsy1]

When I was last at Immigration I asked the question and they told me CIMB is a fine for Retirement Visa's

CIMB is offering 3.1% for twelve months, only for Preferred customers (or guests*), minimum 1 million, interest payable at the end of the term.

* guests need a special voucher.

Actually, they pay the full interest on that account on the day you open it. I opened one last week.

are you aware that you cannot use this acc.for immigration purposes.

read post 1353.

[pasak]

Just decided to deposit two approx THB 2 million tranches in two banks as follows. Am limited by the choice of banks in my area. Will be away for one year.

1. SCB 2.8 pc net no tax seem to invest in bills of exchange, similar to Thanachart's T Cash. Approx fixed for 12 months. Produced Tabien Bahn, Passport and copy of T Cash book.

2. Muslim Bank (from 3rd Nov) 3.11 pc gross (-15 pc tax) fixed 11 months. Guvmint backed so insured over 1 mill.

Hope this helps.

[The Fat Controller]

For those of you that have partners working in Government, Nursing etc it is worth looking into whether they have a Credit Union at their workplace.

My wife works for Mahidol University at Siriraj Hospital and they pay excellent rates on savings accounts.

[AyG]

For those of you that have partners working in Government, Nursing etc it is worth looking into whether they have a Credit Union at their workplace.

The executives of Klongchan Credit Union recently embezzled nearly Bt12 billion of their savers money. Your money is safer in a bank or under the mattress.

[Chao Lao Beach]

Bangkok Bank ATM advertising 6% 12month bonds this week in something I forget.

[chiang mai]

[AyG]

Just discovered that LH Bank is up for sale. Charoen Pokphand Group (CP) cited as likely buyer.

Don't know the reason for the sale. Haven't heard they've got problems. However, if they do it would perhaps be prudent to avoid them. One's money may be safe under the deposit protection scheme, but it could take a long time to get it back in the event of serious problems.

[TallGuyJohninBKK]

For those of you that have partners working in Government, Nursing etc it is worth looking into whether they have a Credit Union at their workplace.

My wife works for Mahidol University at Siriraj Hospital and they pay excellent rates on savings accounts.

AyG's answer above was correct, in that Thai credit unions appear to be not protected by the same Thai government-backed deposit protection insurance as the regular commercial Thai banks.

http://www.dpa.or.th/main.php?filename=index___EN

And credit unions may not be regulated by the Thai government as closely as well. Before I'd put any money into a Thai credit union, I'd want to be very clear as to what, if any, outside party is backing their deposits in the event the credit union were to fail.

BTW, about the credit union case involving fraud, the Thai government's deposit protection insurance for banks doesn't protect account holders against fraud by bank employees either. It only protects depositors in the event the bank fails financially, which of course, could end up being the result of fraud. But there certainly could be fraud that doesn't lead to the bank failing, and the government plan doesn't protect against that.

[TallGuyJohninBKK]

Just discovered that LH Bank is up for sale. Charoen Pokphand Group (CP) cited as likely buyer.

Where did you come across that info?

As for CP... why not??? They already own (most of) everything else in Thailand!

[AyG]

Just discovered that LH Bank is up for sale. Charoen Pokphand Group (CP) cited as likely buyer.

Where did you come across that info?

As for CP... why not??? They already own (most of) everything else in Thailand!

The information came from a throwaway comment in the newspaper we're not allowed to quote or link to.

And as for CP, they're heavily indebted with massive expansion plans.

However, the point wasn't about CP's financial stability, it was about L&H's possible lack thereof and a possible lack of access of funds deposited with them should the ordure strike the electrical cooling device.

[meatboy]

Just discovered that LH Bank is up for sale. Charoen Pokphand Group (CP) cited as likely buyer.

Where did you come across that info?

As for CP... why not??? They already own (most of) everything else in Thailand!

The information came from a throwaway comment in the newspaper we're not allowed to quote or link to.

And as for CP, they're heavily indebted with massive expansion plans.

However, the point wasn't about CP's financial stability, it was about L&H's possible lack thereof and a possible lack of access of funds deposited with them should the ordure strike the electrical cooling device.

OH SHIT have you seen the profit they made this yr.i posted it in this forum back a couple of weeks ago.

my mrs.is on her way to the bank.

[meatboy]

Just discovered that LH Bank is up for sale. Charoen Pokphand Group (CP) cited as likely buyer.

Where did you come across that info?

As for CP... why not??? They already own (most of) everything else in Thailand!

The information came from a throwaway comment in the newspaper we're not allowed to quote or link to.

And as for CP, they're heavily indebted with massive expansion plans.

However, the point wasn't about CP's financial stability, it was about L&H's possible lack thereof and a possible lack of access of funds deposited with them should the ordure strike the electrical cooling device.

as for this rumour it should be deleted.there is nothing in todays news,and their share's are trading up.

throwaway comment yes in the BIN.nothing on the money chanel either.

[AyG]

as for this rumour it should be deleted.there is nothing in todays news,and their share's are trading up.

throwaway comment yes in the BIN.nothing on the money chanel either.

That's not a very charitable attitude. I've already stated it was in the Bangkok Post yesterday.

And a 30 second search on Google brings up a newspaper I believe I can link to:

http://www.thephuketnews.com/big-chains-wait-to-see-if-tesco-will-sell-asia-assets-49458.php

[meatboy]

as for this rumour it should be deleted.there is nothing in todays news,and their share's are trading up.

throwaway comment yes in the BIN.nothing on the money chanel either.

That's not a very charitable attitude. I've already stated it was in the Bangkok Post yesterday.

And a 30 second search on Google brings up a newspaper I believe I can link to:

http://www.thephuketnews.com/big-chains-wait-to-see-if-tesco-will-sell-asia-assets-49458.php

on reading the link the story has come from a local banker not lh themselves.

as for my attitude we have a large interest with this bank and rumours like this does not do anything for ourBP.

as soon as the bank opens i will post the latest from the horses mouth.

[meatboy]

as for this rumour it should be deleted.there is nothing in todays news,and their share's are trading up.

throwaway comment yes in the BIN.nothing on the money chanel either.

That's not a very charitable attitude. I've already stated it was in the Bangkok Post yesterday.

And a 30 second search on Google brings up a newspaper I believe I can link to:

http://www.thephuketnews.com/big-chains-wait-to-see-if-tesco-will-sell-asia-assets-49458.php

on reading the link the story has come from a local banker not lh themselves.

as for my attitude we have a large interest with this bank and rumours like this does not do anything for ourBP.

as soon as the bank opens i will post the latest from the horses mouth.

all i can find out is whats going on is behind closed doors.but nothing to worry about.

fk.i havent felt like this since the halifax got bailed out.

[AyG]

all i can find out is whats going on is behind closed doors.but nothing to worry about.

fk.i havent felt like this since the halifax got bailed out.

I think you're stressing too much. Sorry to have triggered that. However, provided that you're under the limit on depositor protection, whatever happens you'll get your money back. Just make sure that you have enough money with a different bank to tide you over for a year or so if (and it is if) things turn bad.

As for the secrecy, whatever the situation, LH Bank doesn't want a run on its money so it's keeping schtum for now, and it's for the best.

[meatboy]

looking at the profit and loss for thai big banks.

there could be a some carrot dangling next jan 2015.

scb.q3 2013,vs. q3 2014 + 4.2%.

bbl.q3 2013, vs. q3 2014 + 6.9%.

kb. q3 2013, vs. q3 2014 +16.8%.

LH q3 2013, vs. q3 2014 + 120.8% no its not a missprint.so they are doing something right.thats why we went with them this yr.their rates were better.

results for last month for bbl -2.3%

tmb continue to show good results.

but bay,tisco,kiatnakin are not so good all posting losses.

this was 17days ago profits for q3 up 120.8%.

looks like someone wants to make more pork.

[fletchsmile]

Meatboy,

Wouldn't worry too much about LH. It is one of the smaller weaker banks, but you're still covered by DPA, and it's not in bad shape.

There's very little correlation between the profit numbers you posted and deposit rates. If anything the more profitable banks will have higher NIMs (net interest margin = difference or spread between lending rates and deposit rates), so more profitable will be more likely worse deposit rate for customers as a crude general rule of thumb correlation

I don't follow LH that closely with it being one of the smaller less important banks, but a few overview points to note:

- It's jump in 3Q2014 profits vs 3Q2013 is more a reflection of a poor 3Q13 than a great 3Q14

- A large part of the increase was in non-interest income, so has nothing to do with deposit and loan rates. A larger part of non-interest income is from trading activity. It had a poor 3Q13 and hence the jump this time

- It has the worst ROE of any of the main dozen non-state Thai banks (around 6% if I recall, whereas averages are more like 14%)

- It's NIMs are also about the worst of that same dozen banks at around 2% compared to 3% ball parks for others. This links more to the reason you get decent deposit rates. As a small bank with a smaller network and worse credit rating it needs to pay more to attract depositors. Also it's a relatively new bank

On liquidity and capital health metrics:

- It has one of the lowest loan deposit ratios LDRs of that same group. A low LDR reflects more liquidity to an extent, i.e more deposits than loans and not reliant on interbank funding

- it's overall capital adequacy ratio is lower than the same group (13%+ if I recall), whereas the others average 15%+. On the positive side most of it is CET1/Tier1 (higher quality capital)

If you wanted to see more you could look at the info on the SET as a start, particularly under the news section. This includes management discussion and analysis (MDA) on the numbers. Tho' LH MDA isn't usually well written.

http://www.set.or.th/set/companynews.do?symbol=LHBANK&language=en&country=US

Also the bank's own website under investor info or financial info:

- It's Basel Pillar III disclosures (latest capital and risk qualitative numbers) will be on the Bank's website, though they don't always do English for all their disclosures if I recall

- It's half year and full year accounts will be there.

There was an odd emphasis of matter from their auditor for the half year about their doubtful loans. In the MDA it wasn't very clear what they were talking about to be honest, although I do know it's probably to do with the countercyclical buffer BOT brought in for Thai banks around June 2013. Wasn't clear if they had done what they needed to in June 2013 or 2014 - as I say there stuff is usually not that well written in English, and as it's a bank I don't follow much I didn't bother with the Thai, only the key high level metrics and brokers summaries for the banking sector generally

Cheers

Fletch

Edited November 4, 2014 by fletchsmile

[meatboy]

thanks fletch its the wife's capitol thats with them,if anything happened to me it has to see the wf.through till she gets her pensions.it does make quite a sizeable lump of interest thet tops up my pensions and helps to pay for my cider.

it brought back memories of the halifax scare not long after the run on northern rock,then we had all our savings for the build and living exs.for 5yrs.before my pensions kicked in,it was the mrs.who got her bp.racing.she did get intouch but they wouldnt say much but there is something going on.

[55Jay]

Would probably impact the sale if depositors made a nervous run on the bank. I worked for a company that told all of us across the globe that it wasn't up for sale. About a month later we learned that was a bald faced lie as we were issued new business card logos. LOL.

[binnsy1]

Anyone aware of any good fixed 1 year deal available for my Retirement Extension Visa cash available at the moment?

[AyG]

Anyone aware of any good fixed 1 year deal available for my Retirement Extension Visa cash available at the moment?

You'll do better with non-standard term deposits. For example, Bangkok Bank is offering 2.8% for an 11 month deposit.

http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/InvestmentsAndDeposits/FixedDeposits/Pages/SpecialFixedDeposits.aspx

[topt]

Anyone aware of any good fixed 1 year deal available for my Retirement Extension Visa cash available at the moment?

You'll do better with non-standard term deposits. For example, Bangkok Bank is offering 2.8% for an 11 month deposit.

http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/InvestmentsAndDeposits/FixedDeposits/Pages/SpecialFixedDeposits.aspx

I am still seeing 3% for 9 months on SCB branch windows..........

[Tywais]

Anyone aware of any good fixed 1 year deal available for my Retirement Extension Visa cash available at the moment?

You'll do better with non-standard term deposits. For example, Bangkok Bank is offering 2.8% for an 11 month deposit.

http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/InvestmentsAndDeposits/FixedDeposits/Pages/SpecialFixedDeposits.aspx

My Bangkok Bank representative came to my office today for me to roll over my just expired fixed account to the 2.8%/11 month one.

[Jack Mountain]

Anyone aware of any good fixed 1 year deal available for my Retirement Extension Visa cash available at the moment?

You'll do better with non-standard term deposits. For example, Bangkok Bank is offering 2.8% for an 11 month deposit.

http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/InvestmentsAndDeposits/FixedDeposits/Pages/SpecialFixedDeposits.aspx

My Bangkok Bank representative came to my office today for me to roll over my just expired fixed account to the 2.8%/11 month one.

She's your wife right?