Bank Savings Interest Rates

[chiang mai]

My guess is that if ever it came to that point the government would envoke a limit, even though there is none at present, perhaps something along the lines of the 1 mill, baht per customer is covered, everything over that is considered a bail-in, perhaps. Whether or not they would distinguish between foriegn and domestic customers remains to be seen since there is already the distinction between resident and non-resident accounts.

[topt]

Not sure how useful or not but SCB now has on their web site the rates effective from 27th May - which may have to change again next week!

deposit-en-56-48.pdf

[meatboy]

With the base lending rate at 2.75% and forecast to be lowered early next week to 2.50% or even 2.25%, is nobody nervous that several banks continue to offer deposit rates as high as 3.4%, I am, extremely so.

yes cm i am always wary when banks start offering more than what they have been giving the last year they always seem to know when rates are about to be cut and they normaly drop them before they are anounced,looks like some want to get in as much as they can,no need to worry its only to balance the books for all they lent out for new cars.

[connda]

My guess is that if ever it came to that point the government would envoke a limit, even though there is none at present, perhaps something along the lines of the 1 mill, baht per customer is covered, everything over that is considered a bail-in, perhaps. Whether or not they would distinguish between foriegn and domestic customers remains to be seen since there is already the distinction between resident and non-resident accounts.

What a great way to rid themselves of retirees. Take their 800K as a bank bail-in and give them a big kiss goodbye. Or take my 400K as a bank bail in and destroy my marriage and family. We live in interesting times.

[meatboy]

With the base lending rate at 2.75% and forecast to be lowered early next week to 2.50% or even 2.25%, is nobody nervous that several banks continue to offer deposit rates as high as 3.4%, I am, extremely so.

yes cm i am always wary when banks start offering more than what they have been giving the last year they always seem to know when rates are about to be cut and they normaly drop them before they are anounced,looks like some want to get in as much as they can,no need to worry its only to balance the books for all they lent out for new cars.

acording to the news 7am today base rate drop is on the cards for this week,lets see what interest rates will be.

[connda]

So the max you can have in any thai bank account with protection is one million baht? Is tha correct? thanks

As far as I know today it's 50MB and from August it will be 1MB.

It's always good to keep the Cyprus banking debacle in the back of your mind. Once your money is in the bank, it isn't yours, it's the banks. If the banks make bad investments and go under, they will take everything that isn't insured, i.e., 1M baht. And they'll take your safe deposit box too. I wish they had non-bank, security services (safe deposit boxes and vaulting services) like they do in Singapore. Like, where the heck do the HiSo Amart crowd keep their valuables and excess cash? ah errr probably Singapore

[connda]

Does anyone know which banks Do Not take out taxes on earned interest. I end up getting double taxed, 15% for Thailand, and 15+ for Uncle Sam. I'd like to move some funds from BKK Bank which takes out taxes to some other bank that does not.

[isawasnake]

Does anyone know which banks Do Not take out taxes on earned interest. I end up getting double taxed, 15% for Thailand, and 15+ for Uncle Sam. I'd like to move some funds from BKK Bank which takes out taxes to some other bank that does not.

At one point, Krungsri actually encouraged me to open multiple accounts with them to avoid tax withdraw on interest.

[jbrain]

Like, where the heck do the HiSo Amart crowd keep their valuables and excess cash? ah errr probably Singapore

There have been reports of some who took it out of the country in wooden crates.

Others took it out stacked in many suitcases.

[John 1]

So the max you can have in any thai bank account with protection is one million baht? Is tha correct? thanks

As far as I know today it's 50MB and from August it will be 1MB.

It's always good to keep the Cyprus banking debacle in the back of your mind. Once your money is in the bank, it isn't yours, it's the banks. If the banks make bad investments and go under, they will take everything that isn't insured, i.e., 1M baht. And they'll take your safe deposit box too. I wish they had non-bank, security services (safe deposit boxes and vaulting services) like they do in Singapore. Like, where the heck do the HiSo Amart crowd keep their valuables and excess cash? ah errr probably Singapore

Where do you get your information from deposits in TH banks are covered for a lot more than 1m bt do your research.

[John 1]

Does anyone know which banks Do Not take out taxes on earned interest. I end up getting double taxed, 15% for Thailand, and 15+ for Uncle Sam. I'd like to move some funds from BKK Bank which takes out taxes to some other bank that does not.

At one point, Krungsri actually encouraged me to open multiple accounts with them to avoid tax withdraw on interest.

It doesn't matter if you have multiple account's you are still liable by Thai law to pay your taxes even if the bank does not deduct. You know what the threshold is it's about time the bank that are doing this as a supposed service are cleaned up by the tax department.

[meatboy]

Does anyone know which banks Do Not take out taxes on earned interest. I end up getting double taxed, 15% for Thailand, and 15+ for Uncle Sam. I'd like to move some funds from BKK Bank which takes out taxes to some other bank that does not.

whats wrong with claiming it back at the end of the thai tax year[1st jan-31stdec

[utalkin2me]

Does anyone know which banks Do Not take out taxes on earned interest. I end up getting double taxed, 15% for Thailand, and 15+ for Uncle Sam. I'd like to move some funds from BKK Bank which takes out taxes to some other bank that does not.

At one point, Krungsri actually encouraged me to open multiple accounts with them to avoid tax withdraw on interest.

It doesn't matter if you have multiple account's you are still liable by Thai law to pay your taxes even if the bank does not deduct. You know what the threshold is it's about time the bank that are doing this as a supposed service are cleaned up by the tax department.

That's true, but it seems to answer the original question. I have had the same experience with krungsri.

Edited May 28, 2013 by utalkin2me

[cheeryble]

Just as a fun diversion to all this talk of 2.8 and 3.25% trying to keep up with inflation, the mReits have had such a strong rebound tonight after an ugly spell that they just may have found a floor.....and heartening that there's been a bit of insider buying at these lowered levels.

These yield as much as 15, or even 18.85% as of the drop, which sounds extraordinary but they are based on a genuine business model.

May have had their day but the model is made to last though upsteps in rates are damaging temporarily which scare with a bad Q1 hedge just precipitated the present drop.

Absolutely not for women and orphans but if you're sitting on a double or more already on one of these mReits you will put up with a bit if volatility.

As I said, just a wake up call, maybe a nice steady preferred at 6 or 7% yield with no growth might let you sleep better, or BP at 5% plus real potential growth (I already got a charming rise on it as I bought right after Macondo).

Night night....

Edited May 29, 2013 by cheeryble

[John 1]

Just as a fun diversion to all this talk of 2.8 and 3.25% trying to keep up with inflation, the mReits have had such a strong rebound tonight after an ugly spell that they just may have found a floor.....and heartening that there's been a bit of insider buying at these lowered levels. These yield as much as 15, or even 18.85% as of the drop, which sounds extraordinary but they are based on a genuine business model. May have had their day but the model is made to last though upsteps in rates are damaging temporarily which scare with a bad Q1 hedge just precipitated the present drop. Absolutely not for women and orphans but if you're sitting on a double or more already on one of these mReits you will put up with a bit if volatility. As I said, just a wake up call, maybe a nice steady preferred at 6 or 7% yield with no growth might let you sleep better, or BP at 5% plus real potential growth (I already got a charming rise on it as I bought right after Macondo). Night night....

Can you explain what this has to do with Thai Bank interest rates. I've no idea what you are talking about.

[topt]

He is talking about US Mortgage backed REITS - as he says "as a fun diversion" - just Google mreits if you want to know more

To get back on track here is the latest SCB list of rates published yesterday following the cut in rates -

deposit-en-56-49.pdf

[John 1]

He is talking about US Mortgage backed REITS - as he says "as a fun diversion" - just Google mreits if you want to know more

To get back on track here is the latest SCB list of rates published yesterday following the cut in rates -

deposit-en-56-49.pdf

Yes I don't see any change at SCB still 3.2% for 13mths not sure when the promotion finishes

[jbaldwin]

He is talking about US Mortgage backed REITS - as he says "as a fun diversion" - just Google mreits if you want to know more

To get back on track here is the latest SCB list of rates published yesterday following the cut in rates -

deposit-en-56-49.pdf

Yes I don't see any change at SCB still 3.2% for 13mths not sure when the promotion finishes

It's advertised as available until 31st May.

[sbk]

Was looking at the Kbank 3.2% but it was a step up account.

[chiang mai]

It'll probably be a few days before all of the current deals are pulled, I'll do a trawl next week and see what the new rates look like and will post my findings.

What I don't understand at this stage is two things: the first is how far THB is likely to drop against GBP, there seems to have been a flurry of bad eceonomic news this week concerning the future of THB. The second thing is the likelihood of further rate cuts this year, I read very mixed messages on this but on balance the likelihood must be quite high, anyone? BTW yes I do understand that the GBP/THB rate is determined by GBP/USD but that rule doesn't seem to apply at this moment!

[John 1]

Was looking at the Kbank 3.2% but it was a step up account.

Step up account still mean 3.2% for the term. Just need to look at how long have to lock in for is it 1 year or longer.

[mania]

Was looking at the Kbank 3.2% but it was a step up account.

Step up account still mean 3.2% for the term. Just need to look at how long have to lock in for is it 1 year or longer.

I dont think so,

I have not looked at this one specifically but,

Many times a bank will advertise the highest the rate will reach but once averaged out

for the time span you see the true net result is always less.

Edited May 31, 2013 by mania

[chiang mai]

Was looking at the Kbank 3.2% but it was a step up account.

Step up account still mean 3.2% for the term. Just need to look at how long have to lock in for is it 1 year or longer.

I dont think so,

I have not looked at this one specifically but,

Many times a bank will advertise the highest the rate will reach but once averaged out

for the time span you see the true net result is always less.

That's only true where the highest stepped rate is something like 7% hence that's what gets used for advertising, in this case the product is almost certainly a 3.2% product.

[mania]

Was looking at the Kbank 3.2% but it was a step up account.

Step up account still mean 3.2% for the term. Just need to look at how long have to lock in for is it 1 year or longer.

I dont think so,

I have not looked at this one specifically but,

Many times a bank will advertise the highest the rate will reach but once averaged out

for the time span you see the true net result is always less.

That's only true where the highest stepped rate is something like 7% hence that's what gets used for advertising, in this case the product is almost certainly a 3.2% product.

Anyone have a link? I did not see any info on their site

In their rate list they mention only this but no details

Rate Flexible Fixed Deposit 14 Months Deposits from Baht 0.01 million and above 3.20 3.20

http://www.kasikornbank.com/EN/RatesAndFees/Deposit/Pages/Deposit.aspx

Edited May 31, 2013 by mania

[meatboy]

scb fixed term 13months paying interest in steps,1-3,4-6,7-9,10-12,with the 13thmonth paying 23%,for the first 6months its 0.75%.

[chiang mai]

I wonder how many posters/viewers have thought about the impact of funds reversal into Asia, already we're seeing THB and many emerging market currencies fall in value as investment funds are withdrawn over fears that the US Fed is going to end QE. That withdrawl thus far has been mostly by hedge funds but at some point the main stream banks and the masses will join the rush. The fear of withdrawl of QE is way overdone at this stage but that might not be enough to prevent a flood of money from leaving in a panic, when that happens (not if) the local currency will fall in value by a significant amount, that will be great news for those wanting to transfer new money in.

But that also means that any Brit (or similar) who moved their Sterling funds from the UK (or similar) and converted them into THB in order to get the investment yield from local bank fixed depsoits, will not be able to move them back into Sterling without taking a sizeable loss. In fact most wll not be able to do anything with their funds until their fixed rat deals mature and by that time the exchange rate may be far too high to even consider thinking about changing THB back into GBP, something to think about perhaps.

[sbk]

Anyone have a link? I did not see any info on their site

In their rate list they mention only this but no details

Rate Flexible Fixed Deposit 14 Months Deposits from Baht 0.01 million and above 3.20 3.20

http://www.kasikornbank.com/EN/RatesAndFees/Deposit/Pages/Deposit.aspx

We talked to the bank manager, it ended the 28th but he said we could get it till Monday.

[meatboy]

I wonder how many posters/viewers have thought about the impact of funds reversal into Asia, already we're seeing THB and many emerging market currencies fall in value as investment funds are withdrawn over fears that the US Fed is going to end QE. That withdrawl thus far has been mostly by hedge funds but at some point the main stream banks and the masses will join the rush. The fear of withdrawl of QE is way overdone at this stage but that might not be enough to prevent a flood of money from leaving in a panic, when that happens (not if) the local currency will fall in value by a significant amount, that will be great news for those wanting to transfer new money in.

But that also means that any Brit (or similar) who moved their Sterling funds from the UK (or similar) and converted them into THB in order to get the investment yield from local bank fixed depsoits, will not be able to move them back into Sterling without taking a sizeable loss. In fact most wll not be able to do anything with their funds until their fixed rat deals mature and by that time the exchange rate may be far too high to even consider thinking about changing THB back into GBP, something to think about perhaps.

i am wondering what is going to happen if thai gov.drop the cover for savers from 50mill.to 1mill

who in their right mind would trust any thai bank.i have already played my cards so its here to stay having to open multible accs.is not a road i want to go down as its one current acc.plus one savings acc.at each bank you want to save with.whats going to happen to all the accs.where rates are given on the amount you deposit.surely this cant happen but there again this is thailand.

[chiang mai]

I wonder how many posters/viewers have thought about the impact of funds reversal into Asia, already we're seeing THB and many emerging market currencies fall in value as investment funds are withdrawn over fears that the US Fed is going to end QE. That withdrawl thus far has been mostly by hedge funds but at some point the main stream banks and the masses will join the rush. The fear of withdrawl of QE is way overdone at this stage but that might not be enough to prevent a flood of money from leaving in a panic, when that happens (not if) the local currency will fall in value by a significant amount, that will be great news for those wanting to transfer new money in.

But that also means that any Brit (or similar) who moved their Sterling funds from the UK (or similar) and converted them into THB in order to get the investment yield from local bank fixed depsoits, will not be able to move them back into Sterling without taking a sizeable loss. In fact most wll not be able to do anything with their funds until their fixed rat deals mature and by that time the exchange rate may be far too high to even consider thinking about changing THB back into GBP, something to think about perhaps.

i am wondering what is going to happen if thai gov.drop the cover for savers from 50mill.to 1mill

who in their right mind would trust any thai bank.i have already played my cards so its here to stay having to open multible accs.is not a road i want to go down as its one current acc.plus one savings acc.at each bank you want to save with.whats going to happen to all the accs.where rates are given on the amount you deposit.surely this cant happen but there again this is thailand.

You've got some time before you have to worry about that, 2016 is the target:

http://www.dpa.or.th/ewt_news.php?nid=320&filename=index___EN

[John 1]

I wonder how many posters/viewers have thought about the impact of funds reversal into Asia, already we're seeing THB and many emerging market currencies fall in value as investment funds are withdrawn over fears that the US Fed is going to end QE. That withdrawl thus far has been mostly by hedge funds but at some point the main stream banks and the masses will join the rush. The fear of withdrawl of QE is way overdone at this stage but that might not be enough to prevent a flood of money from leaving in a panic, when that happens (not if) the local currency will fall in value by a significant amount, that will be great news for those wanting to transfer new money in.

But that also means that any Brit (or similar) who moved their Sterling funds from the UK (or similar) and converted them into THB in order to get the investment yield from local bank fixed depsoits, will not be able to move them back into Sterling without taking a sizeable loss. In fact most wll not be able to do anything with their funds until their fixed rat deals mature and by that time the exchange rate may be far too high to even consider thinking about changing THB back into GBP, something to think about perhaps.

i am wondering what is going to happen if thai gov.drop the cover for savers from 50mill.to 1mill

who in their right mind would trust any thai bank.i have already played my cards so its here to stay having to open multible accs.is not a road i want to go down as its one current acc.plus one savings acc.at each bank you want to save with.whats going to happen to all the accs.where rates are given on the amount you deposit.surely this cant happen but there again this is thailand.

There are I think 5 major Thai bank's and have survived for years why would you not trust them What bank in your country would you trust it's time to start to think, you have to put some trust some where or bury your money in the ground.

Edited June 1, 2013 by John 1