Bank Savings Interest Rates

[isawasnake]

I just went out with the intention of moving my funds. I found a 3.25% 5 month account at kiatnakin bank. They are charging 15% tax on interest, which I do not really understand. I thought it was after 20k in interest was earned. They said the same thing at CIMB about the tax. I would have moved it, but the tax thing bugged me. My accounts are opened under a Thai citizens name, so I can't get the refund.

On a positive note, I do recommend doing the legwork if you are in the market to move funds. I went to Mega. A 50 meter stretch where all the banks are conveniently lined up will answer more questions in 25 minutes than searching online for hours, at least for me.

I ended up keeping my funds in Krungsri, who seem to have maintained their 2.65%, but there seemed to be rumblings at least of them coming down to 2.6% next month.

Any comments on the tax on interest would be appreciated. Why do some banks charge it, and some not? That was a deal breaker for me today. I calculated the effective interest rate WITH the tax included for the kiatnakin 5 month account, and it was about 2.7%, so I figure why not just leave it in krungsri (2 withdraws per month), who I have been very happy with.

Edited June 1, 2013 by isawasnake

[meatboy]

john 1,as me and mrs meat have farang names you can bet we are on the bottom of the pecking order if our bank went bust and where would this gov.get the funds to pay us they are already up to their necks in debt.

isawasnake you say you cant get tax refunds as you are thai citizen,my wife claims all what she pays as long as you are not earning over 150,000bht that includes wages via work or interest earned in one tax year, you are entitled to a refund there is plenty of info in this forum.

[mania]

I thought it was after 20k in interest was earned. They said the same thing at CIMB about the tax.

I ended up keeping my funds in Krungsri, who seem to have maintained their 2.65%,

Any comments on the tax on interest would be appreciated. Why do some banks charge it, and some not? That was a deal breaker for me today. I calculated the effective interest rate WITH the tax included for the kiatnakin 5 month account, and it was about 2.7%, so I figure why not just leave it in krungsri (2 withdraws per month), who I have been very happy with.

You are missing an important point & that is that the tax is charged on "Fixed" accounts from day one. Not after 20k earned in any given tax year like regular savings

The Ayudhya/Krungsri account is not a fixed account so it does not take any out till you reach 20k earned in one year. Which they also help you avoid by alerting you & opening a new account. I am also happy to stay with them & avoid the tax + reclaim later hassle. Which I did last year with another bank. & yes you can claim it all back.

Edited June 2, 2013 by mania

[chiang mai]

I thought it was after 20k in interest was earned. They said the same thing at CIMB about the tax.

I ended up keeping my funds in Krungsri, who seem to have maintained their 2.65%,

Any comments on the tax on interest would be appreciated. Why do some banks charge it, and some not? That was a deal breaker for me today. I calculated the effective interest rate WITH the tax included for the kiatnakin 5 month account, and it was about 2.7%, so I figure why not just leave it in krungsri (2 withdraws per month), who I have been very happy with.

You are missing an important point & that is that the tax is charged on "Fixed" accounts from day one. Not after 20k earned in any given tax year like regular savings

The Ayudhya/Krungsri account is not a fixed account so it does not take any out till you reach 20k earned in one year. Which they also help you avoid by alerting you & opening a new account. I am also happy to stay with them & avoid the tax + reclaim later hassle. Which I did last year with another bank. & yes you can claim it all back.

To be clear, tax paid on fixed rate/term accounts can be reclaimed, tax paid on instant access accounts cannot.

[chiang mai]

I wonder if posters undesrtand that a fixed rate/term banking product here can be closed without significant penalty, at any time. If you fixed for say twelve months at 3% and half way through the fixed rate period you decide you need the money, you can close the account but you will have to repay any interest you recieved. In return the bank will pay you interest at the normal savings rate for the period you have held your bond, currently that's around 0.65% per year.

So, if you are getting ready to take out a fixed rate product and you are agonsing over whether to open one for 3, 6, 9 or 12 months, I would go for the one with the highest interest rate.

[mania]

I wonder if posters undesrtand that a fixed rate/term banking product here can be closed without significant penalty, at any time. If you fixed for say twelve months at 3% and half way through the fixed rate period you decide you need the money, you can close the account but you will have to repay any interest you recieved. In return the bank will pay you interest at the normal savings rate for the period you have held your bond, currently that's around 0.65% per year.

So, if you are getting ready to take out a fixed rate product and you are agonsing over whether to open one for 3, 6, 9 or 12 months, I would go for the one with the highest interest rate.

Actually if anyone has any fears about needing certain monies that are going to be fixed/locked

in an account what they should do is step into accounts.

If you for example are depositing 2 million baht

make 8 deposits of 250k. Banks allow them in the same one account & you can withdraw in those increments

without upsetting the whole account.

If by chance you bank does not then go ahead & open multiple accounts. But I know places like BKB allow them in the same account.

So during an offer period make multiple deposits rather than 1 large one. If you should need money you may take the hit on

just one of those

[reflectionx]

I wonder if posters undesrtand that a fixed rate/term banking product here can be closed without significant penalty, at any time. If you fixed for say twelve months at 3% and half way through the fixed rate period you decide you need the money, you can close the account but you will have to repay any interest you recieved. In return the bank will pay you interest at the normal savings rate for the period you have held your bond, currently that's around 0.65% per year.

So, if you are getting ready to take out a fixed rate product and you are agonsing over whether to open one for 3, 6, 9 or 12 months, I would go for the one with the highest interest rate.

Am I missing something here? Savings rate of 0.65% and mortgage rate of 7%?

Dear Santa, for Xmas I don't want oil well in my backyard, I want a bank in Thailand!

[chiang mai]

I wonder if posters undesrtand that a fixed rate/term banking product here can be closed without significant penalty, at any time. If you fixed for say twelve months at 3% and half way through the fixed rate period you decide you need the money, you can close the account but you will have to repay any interest you recieved. In return the bank will pay you interest at the normal savings rate for the period you have held your bond, currently that's around 0.65% per year.

So, if you are getting ready to take out a fixed rate product and you are agonsing over whether to open one for 3, 6, 9 or 12 months, I would go for the one with the highest interest rate.

Actually if anyone has any fears about needing certain monies that are going to be fixed/locked

in an account what they should do is step into accounts.

If you for example are depositing 2 million baht

make 8 deposits of 250k. Banks allow them in the same one account & you can withdraw in those increments

without upsetting the whole account.

If by chance you bank does not then go ahead & open multiple accounts. But I know places like BKB allow them in the same account.

So during an offer period make multiple deposits rather than 1 large one. If you should need money you may take the hit on

just one of those

I wasn't aware you can do this, I achieve the same thing by opening a series of separate accounts, each containing smaller amounts. So rather than deposit 1 mill I might open two accounts for say 500k each, in the past however I have staggered my durations but now I understand the above I will use a single account with multiple deposits for the longest timeframe at the highest rate. See, it's easy when you know what you're doing plus when you understand all the rules.

[Pib]

I wonder if posters undesrtand that a fixed rate/term banking product here can be closed without significant penalty, at any time. If you fixed for say twelve months at 3% and half way through the fixed rate period you decide you need the money, you can close the account but you will have to repay any interest you recieved. In return the bank will pay you interest at the normal savings rate for the period you have held your bond, currently that's around 0.65% per year.

So, if you are getting ready to take out a fixed rate product and you are agonsing over whether to open one for 3, 6, 9 or 12 months, I would go for the one with the highest interest rate.

Actually if anyone has any fears about needing certain monies that are going to be fixed/locked

in an account what they should do is step into accounts.

If you for example are depositing 2 million baht

make 8 deposits of 250k. Banks allow them in the same one account & you can withdraw in those increments

without upsetting the whole account.

If by chance you bank does not then go ahead & open multiple accounts. But I know places like BKB allow them in the same account.

So during an offer period make multiple deposits rather than 1 large one. If you should need money you may take the hit on

just one of those

I wasn't aware you can do this, I achieve the same thing by opening a series of separate accounts, each containing smaller amounts. So rather than deposit 1 mill I might open two accounts for say 500k each, in the past however I have staggered my durations but now I understand the above I will use a single account with multiple deposits for the longest timeframe at the highest rate. See, it's easy when you know what you're doing plus when you understand all the rules.

At this Bangkok Bank webpage on fixed accounts they address the multiple deposits to the same fixed savings account...look on the right hand side of the page for below quote/cut & paste:

Do you know?

You can add multiple deposits to the same account. This gives you the advantage of not having to carry more than one passbook. If you add your deposits over a period of time they will mature at different times which gives you more flexibility when it comes to withdrawing your money.

[isawasnake]

This has officially become my favorite thread on Thaivisa.

[mania]

At this Bangkok Bank webpage on fixed accounts they address the multiple deposits to the same fixed savings account...look on the right hand side of the page for below quote/cut & paste:

Do you know?

You can add multiple deposits to the same account. This gives you the advantage of not having to carry more than one passbook. If you add your deposits over a period of time they will mature at different times which gives you more flexibility when it comes to withdrawing your money.

Yes that is true & also if you want to make the multiple deposits into the same account on the same day that is also fine.

So maturity on all are the same but you have the option of breaking just a fraction of a time deposit not the whole if you should

suddenly find you need some of those funds back before maturity.

Edited June 6, 2013 by mania

[nong38]

Since I returned from Blighty a few days ago I have noticed that the fixed term rates have come down from 3% to 2.7%, still better than a kick in the teeth as savings rates in the UK have come down even more on ISA's. I was lucky last year to get a 1 year one for 3,25%, now gone, Halifax offered me 1.35% down from 1.65%.

Metrobank had one at 2.35% but its now down to 2%, unless you are a long time customer ( 2 years ) in which case you can keep the 2.35%.

Generally in the UK the feeling is that rates are going to be low for a long time, people have borrowed money for cheap mortgages and if interest rates go up there is no way the mortgages are going to get repaid. Inflation at a reported 2.7% and expected to rise over the next few months as well, its not a pretty picture, steer clear worse times are ahead, thanks to Govt indecisions over the past 15 years old power stations are being shut down and little or no replacements have been approved, the spectre of power cuts and tax rises is on the horizon. I brought some comfort out with me at 47.7% a better offer from the Bank that was advertised, only a little .4% but better.

Anyway nice to be back.

[up-country_sinclair]

SCB is offering 3.2% on deposits over one billion (with a "b") Baht.

Or am I reading this wrong?

The interest rate for Siam Commercial Bank below is for a fixed 12 month / 1 year Interest rate for 1000 million Baht and Over

http://thailand.deposits.org/accounts/scb-1-year-fixed-deposit.html

Edited July 19, 2013 by up-country_sinclair

[jpinx]

Thai bank rates are generally very poor, but better than UK, etc. Has anyone taken on the Vietnam or other adjoining country banks where rates are generally better?

[John 1]

Latest from Kbank

[Billy The Kid]

Latest from Kbank

Thanks, very useful info.

[up-country_sinclair]

Thanks.

3.2% is the best rate I've seen recently.

[chiang mai]

CIMB has 3.6% for new money.

[mania]

Latest from Kbank

Odd how they describe what you get if you leave early in that 14 month plan.

Normally it is 3.2 from 3 months on but I notice the way they describe theirs sounds like a stepped plan

Note there are rates from less than 3, 0-3. 6-less than 14 & finally the 14 month rate So they have many rates for early withdrawal types

Of course that is all fine as most will leave for the whole 14 months but, the way it is described makes me

want to read their fine print to see that 3.2% is paid for the full term & the short rates are just early withdrawal

rates/penalties

What I would like to find is more Ayudhya style accounts. with no time/no penalties & with monthly interest

untaxed & paid each month. If one needs to withdraw they allow two withdrawals per month free.

The Mee Tae Dai is down to 2.65% now but still offers all of that

Edited July 24, 2013 by mania

[Harrykrabi]

Does anyone know of a website or other means of checking out the Thai banks current savers offers and rates or is it a case of trawling from bank to bank to find out the best deals. Or does anyone know what the current best deals on offer are ?

[craigt3365]

Does anyone know of a website or other means of checking out the Thai banks current savers offers and rates or is it a case of trawling from bank to bank to find out the best deals. Or does anyone know what the current best deals on offer are ?

Found this with a quick google search:

http://www.bot.or.th/english/statistics/financialmarkets/interestrate/_layouts/application/interest_rate/IN_Rate.aspx

[chiang mai]

Does anyone know of a website or other means of checking out the Thai banks current savers offers and rates or is it a case of trawling from bank to bank to find out the best deals. Or does anyone know what the current best deals on offer are ?

Found this with a quick google search:

http://www.bot.or.th/english/statistics/financialmarkets/interestrate/_layouts/application/interest_rate/IN_Rate.aspx

The BOT site is not particularly useful since it only displays standard savings rates and not the specials that most people tend to opt for. In answer to the question raised it's more a case of finding a shopping centre that houses a majority of the banks and then doing a door to door to find special rates on offer. We have one such mall here in Chiang Mai although I haven't done the rounds for a while, I will try to do so this week and post my findings.

[trajan]

not sure that master list from the Bank of Thailand is correct...

just got 3.15% on 12 month fixed deposit at UOB Thai (not a special rate as far as I know...just the first thing they offered)....the BOT master list indicates 2.4% to 2.5% for 12 month fixed at UOB

Edited July 24, 2013 by trajan

[chiang mai]

not sure that master list from the Bank of Thailand is correct...

just got 3.15% on 12 month fixed deposit at UOB Thai (not a special rate as far as I know...just the first thing they offered)....the BOT master list indicates 2.4% to 2.5% for 12 month fixed at UOB

As mentioned in the previous post the BOT list is incomplete, similar to the UOB rate it doesn't show the CIMB rate of 3.4 either!

[John 1]

not sure that master list from the Bank of Thailand is correct...

just got 3.15% on 12 month fixed deposit at UOB Thai (not a special rate as far as I know...just the first thing they offered)....the BOT master list indicates 2.4% to 2.5% for 12 month fixed at UOB

You will waste your time going by the BOT list. Go to each bank web site and even then not correct as they might have a special deal posted on there entrance door at the bank. You all need to do some foot work and work out what's best. If you have a good relation ship with your bank manager and a sizable amount of money they will do a deal and call head office I last received .4% on top of 3.2% from SCB for 13mth's.

[Jobo]

CIMB has 3.6% for new money.

3.60% for 10,000,000 + for 12 months

3.40% for 1,000,000 + for 12 months

Interest rate is flat not compounding.

So if you deposit 1,000,000 baht for 12 months your gross interest will be 34,000 baht

Less WHT of 15% and you end up with 28,900 baht or an effective flat rate of 2.89%

Thais in general do not understand compounding or reducing

[Jobo]

not sure that master list from the Bank of Thailand is correct...

just got 3.15% on 12 month fixed deposit at UOB Thai (not a special rate as far as I know...just the first thing they offered)....the BOT master list indicates 2.4% to 2.5% for 12 month fixed at UOB

You will waste your time going by the BOT list. Go to each bank web site and even then not correct as they might have a special deal posted on there entrance door at the bank. You all need to do some foot work and work out what's best. If you have a good relation ship with your bank manager and a sizable amount of money they will do a deal and call head office I last received .4% on top of 3.2% from SCB for 13mth's.

What's a "sizeable amount of money"?

[nickmanchester2]

is it easy to get your money back to the UK for example if you wanted to?

[trajan]

CIMB has 3.6% for new money.

CIMB website states:

( a ) 3.4% per annum (1 year fixed) for new money Baht 1 mil up to Baht 10 mil (up to July 31st)

( b ) 3.5% per annum (1 year fixed) for new money Baht 10 mil to Baht 30 mil

http://www.cimbthai.com/CIMB/en/personal/promotion/deposit/fixed_deposit_cimb_welcome_with_high_interest/

are these the best rates in Thailand at the moment?

Edited July 24, 2013 by trajan

[sotsira]

Does anyone know of a website or other means of checking out the Thai banks current savers offers and rates or is it a case of trawling from bank to bank to find out the best deals. Or does anyone know what the current best deals on offer are ?

I,ve just trawled the major banks looking at the best deals and found these two to

come out on top:

For a fixed term deposit a/c

CIMB Thai Bank has the best rate of 3.4% for 12months 1million bt to 10million bt

Interest is taxable at 15% offer ends 31st July.

For a Special Savers a/c

Krungsri Bank has 2.65% with a minimum of 100,000bt and permission of two withdrawals

per month.

Interest is paid monthly and is taxable at 15% only when or if it exceeds 20,000bt in a year.