Bank Savings Interest Rates

[mania]

Sorry to repeat but I'm comfused.

How do I invest 1.5m to best advantage and avoid having to retrieve withholding tax which sounds about as much fun as peripheral neuropathy?

ps: I already have accounts open at BKKBK and SCB. When I asked bKKBK about avoiding withholding with multiple accounts they seemd clueless.

Thanks v much!

You didn't like my reply?

When you say invest are you willing to take risks or are you just looking for a bank account with the best interest & no taxes removed?

When you ask at BKB & SCB they may appear clueless because they do not understand the question.

To them it is probably a non-event as fixed gets taxed & non-fixed does not ( until 20k in one calender year is reached)

It has been my experience that they do not do aggregate calculations on multiple accounts to reach the 20k figure

At least not at BAY where I have multiple accounts

[12DrinkMore]

Here's my list from 16.12.2012. Have a deposit maturing this week.

AYB: 2.9% 5M

3.0% 11M

BBL 2.8% 7M

TMB 3.0 12M (Interest paid upfront)

3.0 Instant access with the No Fixed account.

Looks like my "No fixed" account at the TMB will be getting the cash until a better home for it is found.

[John 1]

Here's my list from 16.12.2012. Have a deposit maturing this week.

AYB: 2.9% 5M

3.0% 11M

BBL 2.8% 7M

TMB 3.0 12M (Interest paid upfront)

3.0 Instant access with the No Fixed account.

Looks like my "No fixed" account at the TMB will be getting the cash until a better home for it is found.

Tell me the TMB No fixed account if closed after 1 month do you get paid the 3%.

[chiang mai]

Here's my list from 16.12.2012. Have a deposit maturing this week.

AYB: 2.9% 5M

3.0% 11M

BBL 2.8% 7M

TMB 3.0 12M (Interest paid upfront)

3.0 Instant access with the No Fixed account.

Looks like my "No fixed" account at the TMB will be getting the cash until a better home for it is found.

Tell me the TMB No fixed account if closed after 1 month do you get paid the 3%.

Sure, pro-rated for the part of the year that you had your money on deposit, so, 1 year x 3% /12.

[12DrinkMore]

Here's my list from 16.12.2012. Have a deposit maturing this week.

AYB: 2.9% 5M

3.0% 11M

BBL 2.8% 7M

TMB 3.0 12M (Interest paid upfront)

3.0 Instant access with the No Fixed account.

Looks like my "No fixed" account at the TMB will be getting the cash until a better home for it is found.

Tell me the TMB No fixed account if closed after 1 month do you get paid the 3%.

Sure, pro-rated for the part of the year that you had your money on deposit, so, 1 year x 3% /12.

From the website

"Interest is calculated every day and paid twice a year, in June and December."

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

[Obb]

Your Ultra savings is it a time/fixed type account?

The Thanachart Ultra Savings Account restricts free withdrawals to two per month. Otherwise, AFAIK, it is a regular savings account.

I have gone ALL the way up the corporate ladder at this bank and still awaiting clarification. Other than on this issue (i.e. their withholding 15% tax on interest < 20,000 baht), have had no problems with Thanachart. Except that their website is absent English on some important pages - such as fees and rates ... sigh ...

Edited December 23, 2012 by Obb

[chiang mai]

Directly related to this topic but only of interest to Brits and holders of GBP, the following article talks about the possibility of a BOE interest rate rise next year, significant because it's the first time the main stream press has written about this in a positive light. That would of course begin to turn the tables on the attractivness of Sterling vs THB.

http://www.telegraph.co.uk/finance/economics/9763127/Pressure-increases-for-UK-interest-rate-rise-in-2013.html

[sbk]

Off topic bickering removed. Get back to the subject thanks.

[up-country_sinclair]

I've had several fixed accounts over the years, and the banks have always taken 15% tax on the interest earned---whether the interest was 15,000 baht or 25,000 baht. So what is the deal with the 20,000 baht figure I've been reading about? Seems to me they take the 15% no matter what.

Also, can I deduct the amount when I file my taxes in March?

[chiang mai]

I've had several fixed accounts over the years, and the banks have always taken 15% tax on the interest earned---whether the interest was 15,000 baht or 25,000 baht. So what is the deal with the 20,000 baht figure I've been reading about? Seems to me they take the 15% no matter what.

Also, can I deduct the amount when I file my taxes in March?

Yes, the banks deduct the 15% on most fixed accounts, except those of limited short duration where the interest recieved does not exceed the nil band tax threshold. Also yes, the interes can be reclaimed via tax returns.

[meatboy]

I've had several fixed accounts over the years, and the banks have always taken 15% tax on the interest earned---whether the interest was 15,000 baht or 25,000 baht. So what is the deal with the 20,000 baht figure I've been reading about? Seems to me they take the 15% no matter what.

Also, can I deduct the amount when I file my taxes in March?

the 20,000 bht.figure is the amount of tax you can claim back,eg.my wf.and me earn about 250,000bht.interest a yr.on fixed accounts we dont work so therefore my wfs.and me have an allowance of aprox.130,000bht a yr each.tax deducted x 15%= 19,500bht which we claim back,any tax over the 20,000bht you cant claim back.the only time the banks dont take tax is on current accounts and some fixed accs.that if you withdraw before maturity then they will deduct interest.

[12DrinkMore]

Directly related to this topic but only of interest to Brits and holders of GBP, the following article talks about the possibility of a BOE interest rate rise next year, significant because it's the first time the main stream press has written about this in a positive light. That would of course begin to turn the tables on the attractivness of Sterling vs THB.

http://www.telegraph...se-in-2013.html

I wouldn't count on this.

The UK is heading for a record triple dip recession, and in any case there can be no real recovery until a substantial part of the private debt has been paid down and the banks start lending again.

Another problem is that gov bonds will collapse in price, leaving large holes in the banks' balance sheets, unless they can offload to Merv before the event. In which case the BoE takes the hit, which is possibly the best option. But is yet another transfer of cash from the government to the bankrupt private banking sector is a good idea?

[chiang mai]

Directly related to this topic but only of interest to Brits and holders of GBP, the following article talks about the possibility of a BOE interest rate rise next year, significant because it's the first time the main stream press has written about this in a positive light. That would of course begin to turn the tables on the attractivness of Sterling vs THB.

http://www.telegraph...se-in-2013.html

I wouldn't count on this.

The UK is heading for a record triple dip recession, and in any case there can be no real recovery until a substantial part of the private debt has been paid down and the banks start lending again.

Another problem is that gov bonds will collapse in price, leaving large holes in the banks' balance sheets, unless they can offload to Merv before the event. In which case the BoE takes the hit, which is possibly the best option. But is yet another transfer of cash from the government to the bankrupt private banking sector is a good idea?

"Don't count on it", you say - I don't, that's why I wrote "the possibility of"!

[soap]

I've had several fixed accounts over the years, and the banks have always taken 15% tax on the interest earned---whether the interest was 15,000 baht or 25,000 baht. So what is the deal with the 20,000 baht figure I've been reading about? Seems to me they take the 15% no matter what.

Also, can I deduct the amount when I file my taxes in March?

the 20,000 bht.figure is the amount of tax you can claim back,eg.my wf.and me earn about 250,000bht.interest a yr.on fixed accounts we dont work so therefore my wfs.and me have an allowance of aprox.130,000bht a yr each.tax deducted x 15%= 19,500bht which we claim back,any tax over the 20,000bht you cant claim back.the only time the banks dont take tax is on current accounts and some fixed accs.that if you withdraw before maturity then they will deduct interest.

Can anyone advise

What period you are allowed to claim the withholding tax back.

(1) Are you only allowed to claim the withholding tax back only from the 1st January to the 31st December when you apply.

(2) Is i possible to claim the withholding tax from previous years,as long as you have not claimed before and it is not over 20,000 Baht

Thank You

Very informative thread this one

[meatboy]

tax witheld 2012 you claim back from 1st jan.2013.

the other 2 questions regarding the time limit and back tax for previos yrs.i will post later today as the wife is going to the tax office to put in our claim for 2012.

if you havnt claimed before you have to register at the office they will give you a personel id.no. with a card that has your address on,i have posted earlier what you need to take with you,or your th.wf.can do it.

[meatboy]

tax witheld 2012 you claim back from 1st jan.2013.

the other 2 questions regarding the time limit and back tax for previos yrs.i will post later today as the wife is going to the tax office to put in our claim for 2012.

if you havnt claimed before you have to register at the office they will give you a personel id.no. with a card that has your address on,i have posted earlier what you need to take with you,or your th.wf.can do it.

the wf just phoned me 30mins and all done.

regarding the time you have to submit your claim is to the 31st.march.

back tax can be reclaimed for up to 3yrs.but you need [if its tax deducted by your bank] certificates to show the amounts witheld.

[mania]

I've had several fixed accounts over the years, and the banks have always taken 15% tax on the interest earned---whether the interest was 15,000 baht or 25,000 baht. So what is the deal with the 20,000 baht figure I've been reading about? Seems to me they take the 15% no matter what.

Also, can I deduct the amount when I file my taxes in March?

the 20,000 bht.figure is the amount of tax you can claim back,eg.my wf.and me earn about 250,000bht.interest a yr.on fixed accounts we dont work so therefore my wfs.and me have an allowance of aprox.130,000bht a yr each.tax deducted x 15%= 19,500bht which we claim back,any tax over the 20,000bht you cant claim back.the only time the banks dont take tax is on current accounts and some fixed accs.that if you withdraw before maturity then they will deduct interest.

I think another possibility of what Up Country Sinclair is asking about is this....

If you have a fixed account the 15% is taken period

But if you have a regular account ( non- fixed ) even if higher interest paying like

Ayudhya's Mee Tae Dai with their 2.8% interest

No tax is taken from your account

Until you have received 20k THB of interest in a calender year

Then tax Will be taken even from this non-fixed type account

But it is easily avoided by opening another account even at the same bank.

Banks like Ayudhya are very nice about this & even warn you when you are approaching

the 20k mark for a given calender year.

Edited January 3, 2013 by mania

[Obb]

It's official: from the office of a senior exec at Thanachart, no tax should be withheld on interest <20,000 baht in their Ultra Savings account. They said they will refund the tax they have erroneously deducted in my account.

Any term deposit will be subject to tax being withheld on all interest.

But, after all this, including this thread ...

Is one able to get a tax refund from the government of Thailand for tax withheld on interest < 20,000 baht in a term deposit? If so, exactly how is this done?

Edited January 4, 2013 by Obb

[meatboy]

any tax witheld by the bank should be refundable,just ask your bank at the end of the tax yr.31dec.for a certificate showing the amount.there are plenty of posts as to what you do then.

[exeter]

The UK pundits seem to think, regardless of inflation, that interest rates will stay low for 4 more years ( Halifax ISA 1.65% ). Should you leave any cash at the bank in the UK which such appalling rates? All govts ( according to the Telegraph ) are trying to drive down their currencies to help exports ( does not help savers though does it?), but if they are all at things wont change, but if they did you need to look for opprotunities to move things, keep an eye on what is going on,

[meatboy]

now that wf.and i have opened savings acc.with tgb.she is now entitled to buy gov.lottery tks.cost 50bht each draw takes place once a month.not to loose any of your stake if you leave them untouched for 3yrs.you get back 52.75bht for each one plus any winnings,so a return of 5.75% is not too bad considering uk.instant access accs.pay 0.10%pr.yr.=0.30% for 3yrs.i am not sure what the prizes are but 1st prize is 10millionbht.just like uk.premium bonds but you get interest.it must be ok.because my mrs.wouldnt trust anyone if she thought there was a catch,mind you she has always been a sucker for buy one and get one free

[chiang mai]

The UK pundits seem to think, regardless of inflation, that interest rates will stay low for 4 more years ( Halifax ISA 1.65% ). Should you leave any cash at the bank in the UK which such appalling rates? All govts ( according to the Telegraph ) are trying to drive down their currencies to help exports ( does not help savers though does it?), but if they are all at things wont change, but if they did you need to look for opprotunities to move things, keep an eye on what is going on,

Not a good idea to keep holding sterling which ever way you look at things, look outt pensioners, the Pound's going down, again!

http://www.telegraph.co.uk/finance/personalfinance/investing/9785201/Sterling-faces-destructive-triple-cocktail-in-2013-HSBC.html

[chiang mai]

now that wf.and i have opened savings acc.with tgb.she is now entitled to buy gov.lottery tks.cost 50bht each draw takes place once a month.not to loose any of your stake if you leave them untouched for 3yrs.you get back 52.75bht for each one plus any winnings,so a return of 5.75% is not too bad considering uk.instant access accs.pay 0.10%pr.yr.=0.30% for 3yrs.i am not sure what the prizes are but 1st prize is 10millionbht.just like uk.premium bonds but you get interest.it must be ok.because my mrs.wouldnt trust anyone if she thought there was a catch,mind you she has always been a sucker for buy one and get one free

Your mrs has got the right idea, if you don't play you can't win, you should listen to her more often MB.

[meatboy]

now that wf.and i have opened savings acc.with tgb.she is now entitled to buy gov.lottery tks.cost 50bht each draw takes place once a month.not to loose any of your stake if you leave them untouched for 3yrs.you get back 52.75bht for each one plus any winnings,so a return of 5.75% is not too bad considering uk.instant access accs.pay 0.10%pr.yr.=0.30% for 3yrs.i am not sure what the prizes are but 1st prize is 10millionbht.just like uk.premium bonds but you get interest.it must be ok.because my mrs.wouldnt trust anyone if she thought there was a catch,mind you she has always been a sucker for buy one and get one free

Your mrs has got the right idea, if you don't play you can't win, you should listen to her more often MB.

i have started to go deaf and she wants to buy me a hearing aid,what was that love? ok i will take the dog out

[regedit]

Is the interest rate on TMB's No Fixed account published on their website ? I can't seem to find it...

[mania]

Is the interest rate on TMB's No Fixed account published on their website ? I can't seem to find it...

Listed in a column on the right side of page 2.5%

http://www.tmbbank.c...-account-en.php

Also on rates page

http://www.tmbbank.com/rates/interestrate-en.php

Edited January 9, 2013 by mania

[chiang mai]

I went to the tax office in CM today to get my refund on tax paid on my fixed accounts and it all went mostly quiet smoothly, there was an anxious five minutes at the outset where I was told that only tourists staying less than 180 days could reclaim tax and since I was resident I could not, it was quite funny actually because I held my ground and she held hers but she quickly gained the support of everyone else in the office. As soon as I realised they were talking about a VAT refund and I was talking about income tax and made the difference clear there was smiles all round and I got excellent service - the message here is that farangs reclaiming tax on bank accounts is not that common so be prepared that the office you go to/person you speak to may initially think in terms of VAT rather than tax so be clear from the outset.

[mania]

Thanks CM

So I did have a little tax ( just over 1000 baht ) with held on a BKB 4 month account in 2012

Your post makes it sound easy enough that I may go get it.

What all do I need to take? Also which office in CM did you go to?

The one by the 700 year stadium?

Thanks

[shaun77]

I went to the tax office in CM today to get my refund on tax paid on my fixed accounts and it all went mostly quiet smoothly, there was an anxious five minutes at the outset where I was told that only tourists staying less than 180 days could reclaim tax and since I was resident I could not, it was quite funny actually because I held my ground and she held hers but she quickly gained the support of everyone else in the office. As soon as I realised they were talking about a VAT refund and I was talking about income tax and made the difference clear there was smiles all round and I got excellent service - the message here is that farangs reclaiming tax on bank accounts is not that common so be prepared that the office you go to/person you speak to may initially think in terms of VAT rather than tax so be clear from the outset.

After reading this excellent thread,i also went to the tax office this morning taking my Yellow Tabien baan book and my passport.

The tax people could not have been more helpful,i gave them my withholding tax invoices for the past 3 years that i had received

from the banks,they assured me i could claim for the past 3 years and they issued me with a tax ID card saying the refund

would take about one month but i could apply for the refund on line next year

[chiang mai]

Thanks CM

So I did have a little tax ( just over 1000 baht ) with held on a BKB 4 month account in 2012

Your post makes it sound easy enough that I may go get it.

What all do I need to take? Also which office in CM did you go to?

The one by the 700 year stadium?

Thanks

Take your passport and your bank letters confirming with holding tax.

Yes, near the 700 year old stadium, 2nd floor of the Finance Building.