Bank Savings Interest Rates

[ExpatOilWorker]

Then that's a good decision . Can I ask the term to maturity? Tia. In a climate of rising interest rates, Bonds with an early redemption feature can provide a safe punt, if you can buy them at below par.

They are not callable, but other than that I haven't read the fine print.

[topt]

Bonds with an early redemption feature can provide a safe punt, if you can buy them at below par.

Duh, no! Issuers always skew the redemption features in their favour. They can redeem early if it suits them. It's never for the benefit of the investor.

Bonds, anyway, are a poor investment. Ones with embedded calls are even worse.

Disappointed Oxx, that is such a generalisation and often incorrect. Depends also on what price the investor actually paid...........

[Oxx]

Duh, no! Issuers always skew the redemption features in their favour. They can redeem early if it suits them. It's never for the benefit of the investor.

Bonds, anyway, are a poor investment. Ones with embedded calls are even worse.

Disappointed Oxx, that is such a generalisation and often incorrect. Depends also on what price the investor actually paid...........

My views are based upon those of Swenson, who doesn't hold bonds in the Yale University Endowment Fund. His reasoning being (amongst many other factors) that the risk with bonds is asymmetrical. The upside is extremely limited, whilst the downside is total loss. Equities, property, forestry all have a more symmetric risk profile and a far greater upside potential. (He goes into why bonds can be a bad investment considerable length in the appendix "Impure Fixed Income" in his book "Pioneering Portfolio Management".)

For the long term investor bonds as an asset class underperform equities. Yes, this year or that they might outperform, but over time equities have always outperformed bonds, and there's no reason to think this will change any time soon. So why invest in an asset class that is guaranteed to underperform over the years?

Another problem is that bonds mature, and so the money needs to be reinvested. At times when interest rates are extremely low (or even negative) this can be an extremely unattractive proposition.

The only correction I would make to what I wrote was that I should have made it clear I was referring to conventional bonds. Index linked bonds (such as TIPS) do have a valuable part to play in a portfolio as a protection against rising inflation, and an allocation to them is often a good idea. Ultrashort government bonds can also be a useful alternative to cash within a portfolio, but they are not an investment.

[hyperdimension]

The MTD at present is 1.6% for amounts 100,000 to 10 million.

The Bank of Ayudhya's Mee Tae Dai Deposit interest rates are now:

0.6% for amount under 100k THB

1.4% for amount from 100k to 10M THB

Source: Bank of Ayudhya Deposit Interest Rates Effective from 23 May 2016

Standard Chartered's eSaver account interest rate is now 1.5% for amount 1 THB or over.

Source: Deposit Rates Small and Medium Enterprise (SME)

Are there any other better rates around?

[orientalist]

I got 1.65% for 10 months from Thanachart a month ago.

[jayceenik]

I related above that KTB will not open a Fixed Time Deposit for me unless I give them a Thai Tax Id Number.

Obviously a way to shoo me to anther bank.

I just don't understand why.

I contacted the KTB by email which promptly replied with a copy/paste of their requirements on their web site.

No Thai Tax Id Nr mentioned.

But this time I got a complaint tel nr which I'll use next time I go there.

I just went to the KTB Pattaya branch.

There they were immediately ready to open that Fixed Time right away and were nonplussed when I asked them to confirm that no Thai Tax Id Nr was needed.

Only passport with Retirement visa they said.

Unfortunately my savings account is in BKK and it's where the Fixed Time must be established.

[sendintheclowns]

I related above that KTB will not open a Fixed Time Deposit for me unless I give them a Thai Tax Id Number.

Obviously a way to shoo me to anther bank.

I just don't understand why.

I contacted the KTB by email which promptly replied with a copy/paste of their requirements on their web site.

No Thai Tax Id Nr mentioned.

But this time I got a complaint tel nr which I'll use next time I go there.

I just went to the KTB Pattaya branch.

There they were immediately ready to open that Fixed Time right away and were nonplussed when I asked them to confirm that no Thai Tax Id Nr was needed.

Only passport with Retirement visa they said.

Unfortunately my savings account is in BKK and it's where the Fixed Time must be established.

Did I miss why you have to have your fixed time ( that's the same as term deposit, right?) in BKK. ?

[jayceenik]

I related above that KTB will not open a Fixed Time Deposit for me unless I give them a Thai Tax Id Number.

Obviously a way to shoo me to anther bank.

I just don't understand why.

I contacted the KTB by email which promptly replied with a copy/paste of their requirements on their web site.

No Thai Tax Id Nr mentioned.

But this time I got a complaint tel nr which I'll use next time I go there.

I just went to the KTB Pattaya branch.

There they were immediately ready to open that Fixed Time right away and were nonplussed when I asked them to confirm that no Thai Tax Id Nr was needed.

Only passport with Retirement visa they said.

Unfortunately my savings account is in BKK and it's where the Fixed Time must be established.

Did I miss why you have to have your fixed time ( that's the same as term deposit, right?) in BKK. ?

Because there is a bank fee for transfers between Thai provinces.

Even to the same bank group.

I've paid it twice already with transfers BKK to Pattaya and BKK to Ubon.

It's 0.1% with the KTB.

[Oxx]

TMB started offering a spectacular 0% interest rate on Wednesday.

Today they reversed their decision to offer an almost equally spectacular rate of 0.125%

Can't post the link since it's from the other newspaper.

How long before banks here start offering negative interest rates?

[up-country_sinclair]

SCB: 5 month 1.2

8 month 1.3

Bangkok Bank: 5/7/10 month 1.375

12 month 1.5

[chiang mai]

TMB started offering a spectacular 0% interest rate on Wednesday.

Today they reversed their decision to offer an almost equally spectacular rate of 0.125%

Can't post the link since it's from the other newspaper.

How long before banks here start offering negative interest rates?

Highly unlikely in my estimation, negative interest rates are a tool used to combat potential deflation, Thailands GDP remains positive and along with the rest of the region, more positive than most other parts of the world.

[Oxx]

TMB started offering a spectacular 0% interest rate on Wednesday.

Today they reversed their decision to offer an almost equally spectacular rate of 0.125%

Can't post the link since it's from the other newspaper.

How long before banks here start offering negative interest rates?

Highly unlikely in my estimation, negative interest rates are a tool used to combat potential deflation, Thailands GDP remains positive and along with the rest of the region, more positive than most other parts of the world.

And what's your opinion on zero interest rates (as offered earlier this week by TMB)?

[chiang mai]

TMB started offering a spectacular 0% interest rate on Wednesday.

Today they reversed their decision to offer an almost equally spectacular rate of 0.125%

Can't post the link since it's from the other newspaper.

How long before banks here start offering negative interest rates?

Highly unlikely in my estimation, negative interest rates are a tool used to combat potential deflation, Thailands GDP remains positive and along with the rest of the region, more positive than most other parts of the world.

And what's your opinion on zero interest rates (as offered earlier this week by TMB)?

I don't have one, they're at zero but not negative.

The (major) risk that Thai banks have by even considering a negative interest rate is that capital outflows will destroy their balance sheets, especially with neighbouring countries offering positive rates.

[JAS21]

Was at CIMB Today ... their offers this month

Speed Savings ( I use it as a current account) 1.65% above 1M, 1.5% 100K to 1M, 0.4% below 100K ... this %age is revised monthly.

Preferred a/c 5 Months 1.65% (min 50K)

Normal a/c 5 Months 1.55% (min 50K)

For those with Thai ID and over 55 years 12Months 1.95% (min 10K max 1.5M) ... okay for those of you with an elderly wife like myself ... Woops hope she won't read this

24 Months regular saving (save same amount each month ... min 1K max 25K) 2.15%

A BB Term a/c finished today so I put the money into my CIMB CA ... often CIMB have a bond offer in the 3rd week of each month ... will wait and see what the offer is, else Mrs Jas will no doubt do the 1.95% with it.

Also if you have more than 1.3M in Preferred accounts your ATM card is free for use on your Speed Savings a/c and you can use any Banks ATM... no fee and no limit on usage/month.

info may be of use to someone ........................

[worgeordie]

For my retirement years I just brought in a big chunk of Euros in my KrungThai Bank savings account.

Today I went to see if I could put some of it in a time deposit account.

Refused. Only available for Thai citizens ...

For regular, fixed deposit accounts, with Krung Thai there's absolutely no problem. I've opened several at different branches over the last decade or so.

What type of account, precisely, did you apply for? And if it's a regular type, just try a different branch.

Thanks for the reply.

I have a regular savings account at the KTB main branch on Sukhumvit.

This morning I just asked if I could open a time deposit.

I'm indeed surprised that it was denied.

I'll try again tomorrow !!

Called in at CIMB today ... as we were close by. Their savings interest rated are slightly lower from tomorrow.

I have an account with them,it seemed a good rate,not fixed, at the time,but every month

they have lowered the rate,till now its no better than what other banks are offering, one thing

even the best rates are not covering inflation. P.S. CIMB i mean

regards Worgeordie

[scooterboy]

Was at CIMB Today ... their offers this month

Speed Savings ( I use it as a current account) 1.65% above 1M, 1.5% 100K to 1M, 0.4% below 100K ... this %age is revised monthly.

.......................................

info may be of use to someone ........................

Thanks, most certainly of use - good info, too, I might add.

Very well written - I, for one, always appreciate such posts (even if I can't actually benefit from the info).

Unfortunately, no CIMB out my way...

Cheers

[Henryford]

Was at CIMB Today ... their offers this month

Speed Savings ( I use it as a current account) 1.65% above 1M, 1.5% 100K to 1M, 0.4% below 100K ... this %age is revised monthly.

Preferred a/c 5 Months 1.65% (min 50K)

Normal a/c 5 Months 1.55% (min 50K)

For those with Thai ID and over 55 years 12Months 1.95% (min 10K max 1.5M) ... okay for those of you with an elderly wife like myself ... Woops hope she won't read this

24 Months regular saving (save same amount each month ... min 1K max 25K) 2.15%

A BB Term a/c finished today so I put the money into my CIMB CA ... often CIMB have a bond offer in the 3rd week of each month ... will wait and see what the offer is, else Mrs Jas will no doubt do the 1.95% with it.

Also if you have more than 1.3M in Preferred accounts your ATM card is free for use on your Speed Savings a/c and you can use any Banks ATM... no fee and no limit on usage/month.

info may be of use to someone ........................

Yes CIMB seem to offer the best rates around, maybe because they have closed all their branches in Pattaya except one. I would bank with them but too much hassle to go to their branch when i need to.

[JAS21]

Was at CIMB Today ... their offers this month

Speed Savings ( I use it as a current account) 1.65% above 1M, 1.5% 100K to 1M, 0.4% below 100K ... this %age is revised monthly.

Preferred a/c 5 Months 1.65% (min 50K)

Normal a/c 5 Months 1.55% (min 50K)

For those with Thai ID and over 55 years 12Months 1.95% (min 10K max 1.5M) ... okay for those of you with an elderly wife like myself ... Woops hope she won't read this

24 Months regular saving (save same amount each month ... min 1K max 25K) 2.15%

A BB Term a/c finished today so I put the money into my CIMB CA ... often CIMB have a bond offer in the 3rd week of each month ... will wait and see what the offer is, else Mrs Jas will no doubt do the 1.95% with it.

Also if you have more than 1.3M in Preferred accounts your ATM card is free for use on your Speed Savings a/c and you can use any Banks ATM... no fee and no limit on usage/month.

info may be of use to someone ........................

Yes CIMB seem to offer the best rates around, maybe because they have closed all their branches in Pattaya except one. I would bank with them but too much hassle to go to their branch when i need to.

I have internet banking with them, their ATM card that works in any ATM and their Credit Card. So really don't need to visit unless I want to deposit cash, start a new fixed term account or get a letter for Immigration.

[orientalist]

Was at CIMB Today ... their offers this month

Speed Savings ( I use it as a current account) 1.65% above 1M, 1.5% 100K to 1M, 0.4% below 100K ... this %age is revised monthly.

Preferred a/c 5 Months 1.65% (min 50K)

Normal a/c 5 Months 1.55% (min 50K)

For those with Thai ID and over 55 years 12Months 1.95% (min 10K max 1.5M) ... okay for those of you with an elderly wife like myself ... Woops hope she won't read this

24 Months regular saving (save same amount each month ... min 1K max 25K) 2.15%

A BB Term a/c finished today so I put the money into my CIMB CA ... often CIMB have a bond offer in the 3rd week of each month ... will wait and see what the offer is, else Mrs Jas will no doubt do the 1.95% with it.

Also if you have more than 1.3M in Preferred accounts your ATM card is free for use on your Speed Savings a/c and you can use any Banks ATM... no fee and no limit on usage/month.

info may be of use to someone ........................

Does Thai ID mean something like the pink ID card or a driving licence with Thai 13-digit "citizen's number" from tabien baan? Or does it mean only a Thai citizen?

[orientalist]

Ah, I see from their website that it is for "individual residents in Thailand with identification number." Good.

[chiang mai]

Ah, I see from their website that it is for "individual residents in Thailand with identification number." Good.

Thai ID at CIMB means a Tabien Bahn or a work permit, it doesn't mean a Thai drivers license.

[orientalist]

I got 1.65% for 10 months from Thanachart a month ago.

Yikes! It's down to 1.5% this month. And the best Ultra Savings rate is down to 1.35% (but tax-free) Thanachart used to be one of the best banks for fixed deposit deals but they seem to be falling behind a bit now. CIMB has still has 1.55%/1.65% for 5 months and 1.65% for Speed Savings.

[Oorinara]

Bank of Ayudhya (BAY) in Vientiane offers 4% for 2 yr in Baht. No income gain tax there. Lao country risk comes in though.

[orientalist]

Ah, I see from their website that it is for "individual residents in Thailand with identification number." Good.

Thai ID at CIMB means a Tabien Bahn or a work permit, it doesn't mean a Thai drivers license.

In my case, opening a Speed Savings account (without a work permit) they wouldn't accept a drivers licence with 13-digit Thai ID number or anything else other than my pink Thai ID card with the same ID number. They said this was because the account was tax free and my tax number would be the same as my 13-digit ID (it isn't).

[orientalist]

I had a disappointing experience at CIMB Thai head office today. After much arguing they said the special Senior Fixed Deposit account was only for Thai citizens - even though their website states quite clearly that it is "For foreigners with identification number shown in house register," and I have such a number. Same-old, same-old.

Another thing they told me is that right now you only need to deposit 1 million baht with them to get Preferred status and benefits, not 3 million.

I did sign up for the Speed Savings account. This is a bit different from Thanachart's Ultra Savings in that you can withdraw whenever you like without fees.

[chiang mai]

I had a disappointing experience at CIMB Thai head office today. After much arguing they said the special Senior Fixed Deposit account was only for Thai citizens - even though their website states quite clearly that it is "For foreigners with identification number shown in house register," and I have such a number. Same-old, same-old.

Another thing they told me is that right now you only need to deposit 1 million baht with them to get Preferred status and benefits, not 3 million.

I did sign up for the Speed Savings account. This is a bit different from Thanachart's Ultra Savings in that you can withdraw whenever you like without fees.

If you have a yellow tabien bahn, most branches of CIMB will allow you access to the Thai only accounts, like most banks CIMB has idiots that work at head office as well as in the branches so I wouldn't be too concerned at what what was said to you, go to a branch is my advice.

More disturbing is the fact that 1 mill is now the threshold for Preferred status, that combined with their deposit rates being higher than most smells fishy and is troubling.

[JAS21]

I had a disappointing experience at CIMB Thai head office today. After much arguing they said the special Senior Fixed Deposit account was only for Thai citizens - even though their website states quite clearly that it is "For foreigners with identification number shown in house register," and I have such a number. Same-old, same-old.

Another thing they told me is that right now you only need to deposit 1 million baht with them to get Preferred status and benefits, not 3 million.

I did sign up for the Speed Savings account. This is a bit different from Thanachart's Ultra Savings in that you can withdraw whenever you like without fees.

If you have a yellow tabien bahn, most branches of CIMB will allow you access to the Thai only accounts, like most banks CIMB has idiots that work at head office as well as in the branches so I wouldn't be too concerned at what what was said to you, go to a branch is my advice.

More disturbing is the fact that 1 mill is now the threshold for Preferred status, that combined with their deposit rates being higher than most smells fishy and is troubling.

The first level of Preferred 'status' has been 1.3M thb and not 3Mthb ever since I have banked with them ... I wasn't aware that it had been reduced down to 1M thb.

But I have just looked at their website and now the three 'levels' are 1M+ ... 3M+ ... 10M+ (thb)

[roobaa01]

gdaya folks,

www.lhbank.co.th :

tax exempt savings account 50k to 499 k 1.4 %

500k to .....1.6 %

fixed deposit 9 to 12 months 1.8 %. or save banking anz.co.nz 10.000 kiwis 12 moths 3.25 %.

cheers roobaa01

[KhunOr]

IBANK deposit rates are currently better than any other bank that I could find. A 2-year fixed deposit, paying interest to a savings account monthly, gives 2.6%. I opened one two months ago at this rate.

Note that the rates are going down from 1 July. I was told that the new 2-year deposit rate (their best rate) will be coming down to 2.0%. From 1 July their other term rates will be 12m at 1.9%, 6m at 1.5% and 3 m at 1.35%.

I checked out the status of the bank. According to this article 29 April 2016 from ratings agency Fitch:

http://www.reuters.com/article/idUSFit956605

The Ministry of Finance will transfer its supervisory and inspection authority over IBANK to the BOT in Q2 2016. Fitch expects this move to improve supervision and transparency and ensure that IBANK is monitored more closely in line with the regime for commercial banks. Furthermore the MOF plans to establish a Fund similar to the Deposit Protection Agency for commercial banks. IBANK will be required to remit cash to this Fund to be used to recapitalise in the event that they encounter financial difficulties.

Bottom line, quote from the article: "Fitch maintains the view that the state will continue to provide extraordinary support <to IBANK and other SFIs> given their key policy roles."

Of interest to those concerned about deposit protection: today I discussed the situation directly with the manager and staff at a Chiang Mai branch. They were very helpful. It was explained to me that without any doubt, customer deposits of ANY amount are guaranteed by the Ministry of Finance, which is a 49% shareholder (note not the BoT which operates the Deposit Protection Agency).

Then I called the IBANK call center to get a second opinion. I asked the same questions but didn't tell them I'd already spoken to branch staff. I was told exactly the same answers. Both bank staff and call center staff are adamant that customer deposits are guaranteed come what may.

I'm satisfied with that and with the Fitch review.

[KittenKong]

Of interest to those concerned about deposit protection: today I discussed the situation directly with the manager and staff at a Chiang Mai branch. They were very helpful. It was explained to me that without any doubt, customer deposits of ANY amount are guaranteed by the Ministry of Finance, which is a 49% shareholder (note not the BoT which operates the Deposit Protection Agency).

Then I called the IBANK call center to get a second opinion. I asked the same questions but didn't tell them I'd already spoken to branch staff. I was told exactly the same answers. Both bank staff and call center staff are adamant that customer deposits are guaranteed come what may.

So you trust what employees tell you about their Thai bank? An interesting viewpoint.

Personally I have little faith in what employees of any bank tell me. Today's world is riddled with cheats, liars and thieves. And most of the rest are simply incompetent or misled.