Bank Savings Interest Rates

[mania]

No, it's tax paid up to 20K, not interest!

Thanks

[chiang mai]

Put another way, if you have over 134,000 Baht of interest income within the same tax year you will not get a refund on anything over that amount.

[mania]

Put another way, if you have over 134,000 Baht of interest income within the same tax year you will not get a refund on anything over that amount.

Not sure I am following but, are you saying for foreigners living in Thailand, with no other Thai generated income,

all tax deductions on savings are 100% reclaimable ?

Thanks

[chiang mai]

Put another way, if you have over 134,000 Baht of interest income within the same tax year you will not get a refund on anything over that amount.

Not sure I am following but, are you saying for foreigners living in Thailand, with no other Thai generated income,

all tax deductions on savings are 100% reclaimable ?

Thanks

I can only speak for fixed deposit income, not regular savings account interest (which is definitely not refundable) or any other form of investment tax. The tax system here is not disimilar to the tax system anywhere, individuals have a tax free allowance, after which they begin to pay tax. What we're talking about here is reclaiming the tax paid on that tax free allowance which is applicable to Thai's and foriegners.

[mania]

I can only speak for fixed deposit income, not regular savings account interest (which is definitely not refundable) or any other form of investment tax. The tax system here is not disimilar to the tax system anywhere, individuals have a tax free allowance, after which they begin to pay tax. What we're talking about here is reclaiming the tax paid on that tax free allowance which is applicable to Thai's and foriegners.

Thanks CM all rather confusing but will see at the end of the year how it all pans out.

On a separate note,

CIMB - 3% instant (no tax, which means a max depsoit of 1.3 mill, offer ends January)

I have not been able to find any mention of this 3% instant acct on their site.

Do you know if it is still available? I will also check later today

[chiang mai]

I can only speak for fixed deposit income, not regular savings account interest (which is definitely not refundable) or any other form of investment tax. The tax system here is not disimilar to the tax system anywhere, individuals have a tax free allowance, after which they begin to pay tax. What we're talking about here is reclaiming the tax paid on that tax free allowance which is applicable to Thai's and foriegners.

Thanks CM all rather confusing but will see at the end of the year how it all pans out.

On a separate note,

CIMB - 3% instant (no tax, which means a max depsoit of 1.3 mill, offer ends January)

I have not been able to find any mention of this 3% instant acct on their site.

Do you know if it is still available? I will also check later today

It almost certainly is, the manager at my branch told me that it will run until January at least.

[John 1]

I can only speak for fixed deposit income, not regular savings account interest (which is definitely not refundable) or any other form of investment tax. The tax system here is not disimilar to the tax system anywhere, individuals have a tax free allowance, after which they begin to pay tax. What we're talking about here is reclaiming the tax paid on that tax free allowance which is applicable to Thai's and foriegners.

Thanks CM all rather confusing but will see at the end of the year how it all pans out.

On a separate note,

CIMB - 3% instant (no tax, which means a max depsoit of 1.3 mill, offer ends January)

I have not been able to find any mention of this 3% instant acct on their site.

Do you know if it is still available? I will also check later today

It almost certainly is, the manager at my branch told me that it will run until January at least.

SCB now has instant account that pays 3% but you have to have 500k in the account. SCB are now catching up and offering different services.

[mania]

SCB now has instant account that pays 3% but you have to have 500k in the account. SCB are now catching up and offering different services.

Thanks will take a look.

I have not seen that one & do have an account there.

[meatboy]

Put another way, if you have over 134,000 Baht of interest income within the same tax year you will not get a refund on anything over that amount.

thats the way i read it,i used to do accs.and paye in the uk.but the brain doesnt work so well now.what it means is if you have say

5million bht.in the bank at 3% pr.year=150,000bht.the bank will deduct x15%=22,500 you can reclaim 20,000 at the end of the tax year,so you will only loose 2,500bht.so anyone claiming a refund,you get tax paid certificate's from your bank in january for year 2012 and take them along to the local tax office with passport,proof of address once you have registered the claim it will be sent to bkk.and they send you a cheque,if i remember it only took a couple of weeks.

[nong38]

Thanks to one and all, I now tax rate is 15%. In January I go to the bank and ask for the years tax paid certificates, then take down to the local tax office, with wife and passport and sort it out from there. I will check the website also and if I can fill it out on line next time so much the better, thanks again. Thaivisa at its best!

[chiang mai]

Thanks to one and all, I now tax rate is 15%. In January I go to the bank and ask for the years tax paid certificates, then take down to the local tax office, with wife and passport and sort it out from there. I will check the website also and if I can fill it out on line next time so much the better, thanks again. Thaivisa at its best!

Ahem, you didn't describe all the necessary steps in this process, so for the avoidance of doubt I will remind you to send five per cent of the recovered tax funds to Messrs Meatboy & Chiang Mai, Financial Advisory Tax Services to Offshore Expats (FATSOE), bank account details to be provided at a later date via PM.

[nong38]

Golly ghosh, something new every day!

[mania]

Thanks CM all rather confusing but will see at the end of the year how it all pans out.

On a separate note,

CIMB - 3% instant (no tax, which means a max depsoit of 1.3 mill, offer ends January)

I have not been able to find any mention of this 3% instant acct on their site.

Do you know if it is still available? I will also check later today

It almost certainly is, the manager at my branch told me that it will run until January at least.

SCB now has instant account that pays 3% but you have to have 500k in the account. SCB are now catching up and offering different services.

Went by CIMB today but was told the only thing now is a 2.9% interest paid twice yearly June & December.

They also offer a 3.4% for seven month fixed account.

Also checked SCB they did have the 3% 500k min deal but it is a 12 month deal. Although they allow you to borrow? from your

deposit for the first 60 days as long as it is paid back before full term ( or was it first interest payment date?). It is called Flexible Fixed Account. I did not bother further as I am not interested in fixed at this time.

So far BAY 2.9% is working out best for me. Interest paid monthly no taxes till it gets over 20k interest gained.

(But you can move it then if you like as there is no time requirements.)

So due to the monthly interest added at BAY it compounds unlike the 4 month fixed I just completed at BKB which only paid interest at the end based on initial deposit then removed taxes even though it was not 20k in interest earned. ( Fixed accounts do so )

Edited October 13, 2012 by mania

[nong38]

A few posts ago I mentioned an upcoming Krungsri savings scheme paying 4.7% each year for 10 years, after 5 you can cash it in, if you can get the tax certificate dealt with its still 4.7% eventually, the chance you take is what will happen to interest rates in that time period.

In the UK this June I was able to get 1 year ISA with Halifax giving 3.7% that has now ended, the best they offer now is 3.6% for 5 years.

Also Metrobank, I took out one for 1 year for 3,25% that is now not available either, the best they offer 2,35%.

Interest rates in the UK are coming down and that 4.7% looks good for 5 years, then you can review every year from then on up to the 10 year finish.

This offer starts on the 29th of October and closes on the 6th November, multiples of 100,000 bts up to 20,000,000.

Edited October 14, 2012 by nong38

[mania]

Interest rates in the UK are coming down and that 4.7% looks good for 5 years, then you can review every year from then on up to the 10 year finish.

This offer starts on the 29th of October and closes on the 6th November, multiples of 100,000 bts up to 20,000,000.

I never compare interest rates in the western (USA in my case ) with those in the eastern countries.

Looking at a straight savings like the one here in Thailand at BAY for 2.9%

If I compare it to what is on offer for like minded savings in the USA I see 0.25%

So no comparison or if I did I would assume 8-12 times greater than what is on offer in the USA

Just my observation in comparing USA & here

Edited October 14, 2012 by mania

[nong38]

Interest rates in the UK are coming down and that 4.7% looks good for 5 years, then you can review every year from then on up to the 10 year finish.

This offer starts on the 29th of October and closes on the 6th November, multiples of 100,000 bts up to 20,000,000.

I never compare interest rates in the western (USA in my case ) with those in the eastern countries.

Looking at a straight savings like the one here in Thailand at BAY for 2.9%

If I compare it to what is on offer for like minded savings in the USA I see 0.25%

So no comparison or if I did I would assume 8-12 times greater than what is on offer in the USA

Just my observation in comparing USA & here

My bank manger was quick to point out exactly what you say, so, do you bring all you eggs to Thialand?

When the current crisis emerged late 2008? I was lucky to find Halifax in the UK offering 6.27% on my Isa's so in January I took them on the offer for 4 years. Now its a very different story as I said and you confirm from the US.

So do you( not you personally but you are welcome to comment ) bring your eggs to Thailand ( and hope for the best)?

[mania]

My bank manger was quick to point out exactly what you say, so, do you bring all you eggs to Thialand?

When the current crisis emerged late 2008? I was lucky to find Halifax in the UK offering 6.27% on my Isa's so in January I took them on the offer for 4 years. Now its a very different story as I said and you confirm from the US.

So do you( not you personally but you are welcome to comment ) bring your eggs to Thailand ( and hope for the best)?

Yes it is a tough call & subject to your own situation of course.

Personally we have been setting up in Thailand for some years before we moved here.

So we already had a place here paid for.

Personally I think if your plan is to live here you should have at least a few years or more of expense funds here.

[meatboy]

A few posts ago I mentioned an upcoming Krungsri savings scheme paying 4.7% each year for 10 years, after 5 you can cash it in, if you can get the tax certificate dealt with its still 4.7% eventually, the chance you take is what will happen to interest rates in that time period.

In the UK this June I was able to get 1 year ISA with Halifax giving 3.7% that has now ended, the best they offer now is 3.6% for 5 years.

Also Metrobank, I took out one for 1 year for 3,25% that is now not available either, the best they offer 2,35%.

Interest rates in the UK are coming down and that 4.7% looks good for 5 years, then you can review every year from then on up to the 10 year finish.

This offer starts on the 29th of October and closes on the 6th November, multiples of 100,000 bts up to 20,000,000.

this is what would suit my wf.we are only looking to top up my pensions which is more than aduquate to live on,house is paid for only my beloved to keep,she doesnt get her pensions,one in 8yrs.and the other 19yrs.so can you invest a lump sum?it will have to be about 3.8mill.bht to keep under the tax threshold.

[chiang mai]

Maybe relevant, maybe not: I tried to open a 3% account at Krungsri and the staff were quite happy to let me do so, mid way through the account opening process they had to abandon it because the Krungsri systems were not set up to accept a non-Thai ID, I kid you not, the staff were most apologetic but what can be done, I left empty handed!

[meatboy]

A few posts ago I mentioned an upcoming Krungsri savings scheme paying 4.7% each year for 10 years, after 5 you can cash it in, if you can get the tax certificate dealt with its still 4.7% eventually, the chance you take is what will happen to interest rates in that time period.

In the UK this June I was able to get 1 year ISA with Halifax giving 3.7% that has now ended, the best they offer now is 3.6% for 5 years.

Also Metrobank, I took out one for 1 year for 3,25% that is now not available either, the best they offer 2,35%.

Interest rates in the UK are coming down and that 4.7% looks good for 5 years, then you can review every year from then on up to the 10 year finish.

This offer starts on the 29th of October and closes on the 6th November, multiples of 100,000 bts up to 20,000,000.

this is what would suit my wf.we are only looking to top up my pensions which is more than aduquate to live on,house is paid for only my beloved to keep,she doesnt get her pensions,one in 8yrs.and the other 19yrs.so can you invest a lump sum?it will have to be about 3.8mill.bht to keep under the tax threshold.

on checking their web site this is a bill of exchange,but it has no protection.only available for thai's,maybe cm.can throw some light as to what is a b.o.e.

[chiang mai]

A few posts ago I mentioned an upcoming Krungsri savings scheme paying 4.7% each year for 10 years, after 5 you can cash it in, if you can get the tax certificate dealt with its still 4.7% eventually, the chance you take is what will happen to interest rates in that time period.

In the UK this June I was able to get 1 year ISA with Halifax giving 3.7% that has now ended, the best they offer now is 3.6% for 5 years.

Also Metrobank, I took out one for 1 year for 3,25% that is now not available either, the best they offer 2,35%.

Interest rates in the UK are coming down and that 4.7% looks good for 5 years, then you can review every year from then on up to the 10 year finish.

This offer starts on the 29th of October and closes on the 6th November, multiples of 100,000 bts up to 20,000,000.

this is what would suit my wf.we are only looking to top up my pensions which is more than aduquate to live on,house is paid for only my beloved to keep,she doesnt get her pensions,one in 8yrs.and the other 19yrs.so can you invest a lump sum?it will have to be about 3.8mill.bht to keep under the tax threshold.

on checking their web site this is a bill of exchange,but it has no protection.only available for thai's,maybe cm.can throw some light as to what is a b.o.e.

Essentially it's an insurance product, Investopedia defines it as follows although I prefer to think of them as international corporate bonds :

"Bills of exchange are similar to checks and promissory notes. They can be drawn by individuals or banks and are generally transferable by endorsements. The difference between a promissory note and a bill of exchange is that this product is transferable and can bind one party to pay a third party that was not involved in its creation. If these bills are issued by a bank, they can be referred to as bank drafts. If they are issued by individuals, they can be referred to as trade drafts".

Bottom line is there's no government guarantee, if the issuing company or bank goes bust, tough luck.

[meatboy]

thanks cm my mrs.worked very hard in the uk to get where she is today, so a couple of thousand bht.a month extra wont sway her,so 3.25% will do with no risk.

[chiang mai]

thanks cm my mrs.worked very hard in the uk to get where she is today, so a couple of thousand bht.a month extra wont sway her,so 3.25% will do with no risk.

That's the lowest risk option and is the safest bet for retirees, I'm in that bucket also, it's too late in the day to roll the dice anymore..

[nong38]

Maybe relevant, maybe not: I tried to open a 3% account at Krungsri and the staff were quite happy to let me do so, mid way through the account opening process they had to abandon it because the Krungsri systems were not set up to accept a non-Thai ID, I kid you not, the staff were most apologetic but what can be done, I left empty handed!

Is that the 6 month job which can keep on rolling? If so I have 2 of them, not opened at the same time but both since I came back in August, so have in August and one in September.

[chiang mai]

Maybe relevant, maybe not: I tried to open a 3% account at Krungsri and the staff were quite happy to let me do so, mid way through the account opening process they had to abandon it because the Krungsri systems were not set up to accept a non-Thai ID, I kid you not, the staff were most apologetic but what can be done, I left empty handed!

Is that the 6 month job which can keep on rolling? If so I have 2 of them, not opened at the same time but both since I came back in August, so have in August and one in September.

No, this was a 2.9% or 3% instant as I recall, it must have been fairly new because they said the software to manage it still wasn't complete (hence the farang lockout).

[nong38]

CM I think the chance of a bank going bust here is remote but you are right to mention it and also to remind us all about our risk status, the older we get the lower the risk is required because it is not so easy raise funds when work is a distant memory. large capital purchases and expenditure need very careful consideration.

Better to be safe than sorry, for a few bts more.

[mania]

Maybe relevant, maybe not: I tried to open a 3% account at Krungsri and the staff were quite happy to let me do so, mid way through the account opening process they had to abandon it because the Krungsri systems were not set up to accept a non-Thai ID, I kid you not, the staff were most apologetic but what can be done, I left empty handed!

Just wondering but when you say Krungsri. Do you mean Bank of Ayudhya ?

I ask because I have had a few there for awhile now.

Since your login is CM I assume your in Chiang Mai

If so you can try the one on Chang Phuak

I know I have seen other foreigners bank there too.

Also I have found the branch in the CM Airport mall very helpful

Unless of course you mean Krung Thai Bank?

[chiang mai]

Maybe relevant, maybe not: I tried to open a 3% account at Krungsri and the staff were quite happy to let me do so, mid way through the account opening process they had to abandon it because the Krungsri systems were not set up to accept a non-Thai ID, I kid you not, the staff were most apologetic but what can be done, I left empty handed!

Just wondering but when you say Krungsri. Do you mean Bank of Ayudhya ?

I ask because I have had a few there for awhile now.

Since your login is CM I assume your in Chiang Mai

If so you can try the one on Chang Phuak

I know I have seen other foreigners bank there too.

Also I have found the branch in the CM Airport mall very helpful

Unless of course you mean Krung Thai Bank?

My apologies, I do in fact mean Krung Thai Bank.

Yes I live in Chiang Mai and yes Bay and Krungsri are the same bank, all Bay branches to be rebadged to Krungsri as soon as ...!

Just an aside on BAY at airport plaza: I managed to fall out with them because they kept asking me for my passport, I have three accounts with them and when one fixed term account matured recently they wanted to see my passport before I could roll the funds over into a new fix, it's a nonsence. As I reported earlier elsewhere, BAY and doubtless some other banks are taking this passport requirement to the extreme, UOB at least has enough sense to ask for the passport once and then everytime you open a new account you merely sign the orginal copy, again, ditto CIMB, it must be a Thai thing and it's very frustrating, one day you only need a 5 year drivers licence to open/close or transact, the next you need a passport in order to obtain a balance! Rant over, thanks for listening.

[mania]

. As I reported earlier elsewhere, BAY and doubtless some other banks are taking this passport requirement to the extreme,

Heheh funny you mention that as it happened once to me there too.

I usually do not use that branch though as the folks at the Chang Phuak branch know me & my wife.

we had a mortgage there that we paid off last year & they always treat us nicely.

You probably already have a Thai drivers license too yes?

Some places allow that instead of passport because your Passport # is on it.

But as you & I both know TIT so all bets are off as to consistency

[chiang mai]

Hmmm, the MPC just slashed the bank rate to 2.75%, expect all those 2.9% instant access deals to evaporate, I for one was not expecting that at this stage.