Bank Savings Interest Rates

[mania]

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.

This is why I continue with Krungsri even at a lesser rate

1- It is not fixed so not automatically taxed & may also be used for visa extension proof of funds

2- Even if it approaches 20k interest they warn you to open another with them & just move the money over

3- Interest paid monthly & compounds. Other banks pay twice yearly & based on only original deposit

Overall I have not found a better deal when taking it all into consideration

[Jobo]

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.

This is why I continue with Krungsri even at a lesser rate

1- It is not fixed so not automatically taxed & may also be used for visa extension proof of funds

2- Even if it approaches 20k interest they warn you to open another with them & just move the money over

3- Interest paid monthly & compounds. Other banks pay twice yearly & based on only original deposit

Overall I have not found a better deal when taking it all into consideration

So how long is that 2.65% rate guaranteed for?

As it's not a fixed account that rate could change at any time!

Otherwise you are probably right.

[chiang mai]

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.

This is why I continue with Krungsri even at a lesser rate

1- It is not fixed so not automatically taxed & may also be used for visa extension proof of funds

2- Even if it approaches 20k interest they warn you to open another with them & just move the money over

3- Interest paid monthly & compounds. Other banks pay twice yearly & based on only original deposit

Overall I have not found a better deal when taking it all into consideration

So how long is that 2.65% rate guaranteed for?

As it's not a fixed account that rate could change at any time!

Otherwise you are probably right.

The 2.65% rate is deiscretionary so the bank can change it whenever they wish, in practise that usually only happens when the BOT rate changes but that's not guaranteed.

Also, banks that offer fixed rates pay their ineterest on differing basis, most pay monthly but some pay less frequently so you'll need to check the bank and the specific product to be certain.

Finally, one of the nice points in favour of a fixed rate product here is that it doesn't mean fixed term. It means that the rate is fixed for a minimum period such as twelve months but you are free to remove your funds whenever you wish, the penalty for doing that varies between banks but usually means that the rate drops to the standard savings rate for the period the money was on deposit. What it does NOT mean is that you cannot access your funds for the duration of the fixed rate.

[mania]

So how long is that 2.65% rate guaranteed for?

As it's not a fixed account that rate could change at any time!

Otherwise you are probably right.

Yes as CM mentioned it is not locked & is up to the bank

I think it has been lowered twice in the last 1+ year

But like I said overall? This is best for me.

Remember too fixed working "for" you can just as well work against you if something better comes up no?

But the main reason in my case is ease of use, no tax & compounded interest in reality is better than

interest paid 6 months late & based on original deposit 6 months before.

[Sophon]

So how long is that 2.65% rate guaranteed for?

As it's not a fixed account that rate could change at any time!

Otherwise you are probably right.

Yes as CM mentioned it is not locked & is up to the bank

I think it has been lowered twice in the last 1+ year

But like I said overall? This is best for me.

Remember too fixed working "for" you can just as well work against you if something better comes up no?

But the main reason in my case is ease of use, no tax & compounded interest in reality is better than

interest paid 6 months late & based on original deposit 6 months before.

Yes, compounded interest is better for deposits, but at the interest rates we are talking about it means next to nothing. 2.65% p.a. compounded monthly equals a real interest of 2.6824% p.a. while the same interest rate added twice a year equals 2.6676% p.a. On a deposit of 1 mio Baht the difference would only be 148 Baht per year.

Sophon

[Sophon]

So how long is that 2.65% rate guaranteed for?

As it's not a fixed account that rate could change at any time!

Otherwise you are probably right.

Yes as CM mentioned it is not locked & is up to the bank

I think it has been lowered twice in the last 1+ year

But like I said overall? This is best for me.

Remember too fixed working "for" you can just as well work against you if something better comes up no?

But the main reason in my case is ease of use, no tax & compounded interest in reality is better than

interest paid 6 months late & based on original deposit 6 months before.

Yes, compounded interest is better for deposits, but at the interest rates we are talking about it means next to nothing. 2.65% p.a. compounded monthly equals a real interest of 2.6824% p.a. while the same interest rate added twice a year equals 2.6676% p.a. On a deposit of 1 mio Baht the difference would only be 148 Baht per year.

Sophon

[mania]

Yes, compounded interest is better for deposits, but at the interest rates we are talking about it means next to nothing. 2.65% p.a. compounded monthly equals a real interest of 2.6824% p.a. while the same interest rate added twice a year equals 2.6676% p.a. On a deposit of 1 mio Baht the difference would only be 148 Baht per year.

Sophon

True but when you have a few million in it helps & at the end of the day we are talking small amounts all around

Also mainly ease of use & not having to have another account for visa extension proof of funds. As last year

they did not accept fixed accounts as proof of liquid funds (Although they should one would think )

My first year I did one fixed with BKB & had to do the file for my taxes back at the end of the year deal.

Not too much trouble but still a few trips here & there that I no longer need to do this year.

Lastly as you say these rates everywhere is nothing to write home about so I like being free to move to something better

investment wise if it comes along without breaking a fixed account. Which usually means losing pretty much any benefit at all & being relegated to straight savings interest rate which is truly tiny.

[jpinx]

Yes, compounded interest is better for deposits, but at the interest rates we are talking about it means next to nothing. 2.65% p.a. compounded monthly equals a real interest of 2.6824% p.a. while the same interest rate added twice a year equals 2.6676% p.a. On a deposit of 1 mio Baht the difference would only be 148 Baht per year.

Sophon

True but when you have a few million in it helps & at the end of the day we are talking small amounts all around

Also mainly ease of use & not having to have another account for visa extension proof of funds. As last year

they did not accept fixed accounts as proof of liquid funds (Although they should one would think )

My first year I did one fixed with BKB & had to do the file for my taxes back at the end of the year deal.

Not too much trouble but still a few trips here & there that I no longer need to do this year.

Lastly as you say these rates everywhere is nothing to write home about so I like being free to move to something better

investment wise if it comes along without breaking a fixed account. Which usually means losing pretty much any benefit at all & being relegated to straight savings interest rate which is truly tiny.

I've been weighing up the pros ad cons of Thai bank rates -vs- other countries and I fail to see *any* reason to use Thai banks apart from visa requirements. Better rates with better security can easily be found online.

[Rimmer]

A couple of Off topic posts removed

[Harrykrabi]

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

I got offered exactly the same deal as above today at CIMB Hua Hin, rate of 3.4% over 12 months less tax bringing it down to 2.89%. Another poster had said that the tax could be reclaimed but CIMB in Hua Hin told me that that option only applies to Thai nationals who invest. Foreigners cannot reclaim any part or all of the tax - meaning we end up with 2.89%. Thus far this is the best deal I have found anywhere but I am hoping someone can tell me/the forum they found a better deal.

[Harrykrabi]

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

I got offered exactly the same deal as above today at CIMB Hua Hin, rate of 3.4% over 12 months less tax bringing it down to 2.89%. Another poster had said that the tax could be reclaimed but CIMB in Hua Hin told me that that option only applies to Thai nationals who invest. Foreigners cannot reclaim any part or all of the tax - meaning we end up with 2.89%. Thus far this is the best deal I have found anywhere but I am hoping someone can tell me/the forum they found a better deal.

[chiang mai]

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

I got offered exactly the same deal as above today at CIMB Hua Hin, rate of 3.4% over 12 months less tax bringing it down to 2.89%. Another poster had said that the tax could be reclaimed but CIMB in Hua Hin told me that that option only applies to Thai nationals who invest. Foreigners cannot reclaim any part or all of the tax - meaning we end up with 2.89%. Thus far this is the best deal I have found anywhere but I am hoping someone can tell me/the forum they found a better deal.

You were misinformed, the 15% tax can be reclaimed by anyone and many posters including myself have done just that..

[mania]

I got offered exactly the same deal as above today at CIMB Hua Hin, rate of 3.4% over 12 months less tax bringing it down to 2.89%. Another poster had said that the tax could be reclaimed but CIMB in Hua Hin told me that that option only applies to Thai nationals who invest. Foreigners cannot reclaim any part or all of the tax - meaning we end up with 2.89%. Thus far this is the best deal I have found anywhere but I am hoping someone can tell me/the forum they found a better deal.

You were misinformed, the 15% tax can be reclaimed by anyone and many posters including myself have done just that..

Yes they actually told you backwards as it is my guess Thai's cannot claim it back.

I know for a fact foreigners can & it is pretty simple once setup

If I wanted to or needed to do it this year I could do it online because last year I got setup & got a tax ID card

Fortunately I had none withheld this years as I stayed with Ayudhya

Edited July 25, 2013 by mania

[chiang mai]

CIMB offered me 3.4% today, interest paid monthly, H/O maybe willing to negotiate a higher rate on larger amounts, 1 mill +.- I get the idea that CIMB is desparate for deposits which is never a good sign.

UOB - 3.15 for 12 and 3.0 for 6, worthwhile noting because of the stability of the bank.

SCB (Siam) 2.8% for 10.

[Jobo]

CIMB offered me 3.4% today, interest paid monthly, H/O maybe willing to negotiate a higher rate on larger amounts, 1 mill +.- I get the idea that CIMB is desparate for deposits which is never a good sign.

UOB - 3.15 for 12 and 3.0 for 6, worthwhile noting because of the stability of the bank.

SCB (Siam) 2.8% for 10.

You've got me worried about CIMB now with that comment.

I was thinking of dropping a mill in there but maybe just go back to UOB again.

Maybe I can squeeze a little more than 3.15% out of them???

[chiang mai]

CIMB offered me 3.4% today, interest paid monthly, H/O maybe willing to negotiate a higher rate on larger amounts, 1 mill +.- I get the idea that CIMB is desparate for deposits which is never a good sign.

UOB - 3.15 for 12 and 3.0 for 6, worthwhile noting because of the stability of the bank.

SCB (Siam) 2.8% for 10.

You've got me worried about CIMB now with that comment.

I was thinking of dropping a mill in there but maybe just go back to UOB again.

Maybe I can squeeze a little more than 3.15% out of them???

I've mentioned this before but it's worth another mention:

When the central bank base lending rate is 2.75%, that's the amount of interest that the central bank will pay to depositor banks for leaving funds on deposit overnight, why would those same banks be willing to pay a deposit rate to customers of 3.4%. What that means is that banks are losing money on the customer transaction, why, possibly because they need to increase their core capital levels, perhaps they've made excessive loans and need to balance their accounts, perhaps non-performing loans are increasing, whatever the possible answer I don't see that there's a good one and folks need to be cautious.

[meatboy]

CIMB offered me 3.4% today, interest paid monthly, H/O maybe willing to negotiate a higher rate on larger amounts, 1 mill +.- I get the idea that CIMB is desparate for deposits which is never a good sign.

UOB - 3.15 for 12 and 3.0 for 6, worthwhile noting because of the stability of the bank.

SCB (Siam) 2.8% for 10.

You've got me worried about CIMB now with that comment.

I was thinking of dropping a mill in there but maybe just go back to UOB again.

Maybe I can squeeze a little more than 3.15% out of them???

yes cm.your right,i havent forgot the morning news back home when halifax went belly up, i had put our thai house money in a 12month fixed acc.on offer was 6%,i deposited 10mill.bht

i never did wear them trousers again.my only greed comes on a plate.

[KittenKong]

Yes they actually told you backwards as it is my guess Thai's cannot claim it back.

Anyone can claim it back if they have no taxable income.

[KittenKong]

1- It is not fixed so not automatically taxed & may also be used for visa extension proof of funds

......

Overall I have not found a better deal when taking it all into consideration

Tax can be reclaimed. In theory time deposits are perfectly acceptable for visa extensions as long as the cash can be withdrawn early if needed (most Thai TDs allow for this). Jomtien certainly accepts them. Some Immigration offices apply the rules differently though.

Overall I would say that the Bank of Ayudha account can easily be beaten but it is fine as a day-to-day savings account to hold spending money for the duration of other time deposits, which is what I use mine for.

My CIMB 5-month TD expires today and I will be rolling part of it over with CIMB and putting the rest into my BoA account from where I will be spending it over the next X months. I also have a 3.6% 14-month step TD with K-Bank which is what I use for my visa extension.

[mania]

In theory time deposits are perfectly acceptable for visa extensions as long as the cash can be withdrawn early if needed (most Thai TDs allow for this). Jomtien certainly accepts them. Some Immigration offices apply the rules differently though.

Therein lies the rub

Would be nice if rules were the same at all offices but as we know

[Choonpon]

 

 

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

 

 I got offered exactly the same deal as above today at CIMB Hua Hin, rate of 3.4% over 12 months less tax bringing it down to 2.89%. Another poster had said that the tax could be reclaimed but CIMB in Hua Hin told me that that option only applies to Thai nationals who invest. Foreigners cannot reclaim any part or all of the tax - meaning we end up with 2.89%. Thus far this is the best deal I have found anywhere but I am hoping someone can tell me/the forum they found a better deal.

 

 

You were misinformed, the 15% tax can be reclaimed by anyone and many posters including myself have done just that..

I was informed by Bkk bank that the tax can be reclaimed at the tax department too. You will need a letter from the bank to do so.

If anyone has reclaimed experience, kindly post your experience to share.

Thank you.

Sent from my GT-I9300 using Thaivisa Connect Thailand mobile app

[chiang mai]

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

I got offered exactly the same deal as above today at CIMB Hua Hin, rate of 3.4% over 12 months less tax bringing it down to 2.89%. Another poster had said that the tax could be reclaimed but CIMB in Hua Hin told me that that option only applies to Thai nationals who invest. Foreigners cannot reclaim any part or all of the tax - meaning we end up with 2.89%. Thus far this is the best deal I have found anywhere but I am hoping someone can tell me/the forum they found a better deal.

You were misinformed, the 15% tax can be reclaimed by anyone and many posters including myself have done just that..

I was informed by Bkk bank that the tax can be reclaimed at the tax department too. You will need a letter from the bank to do so.

If anyone has reclaimed experience, kindly post your experience to share.

Thank you.

Sent from my GT-I9300 using Thaivisa Connect Thailand mobile app

Please review the earlier pages of this thread, there are already mutliple posts describing various people experiences of reclaiming tax on bank deposits, nobody has posted any difficulties with it.

[chiang mai]

CIMB offered me 3.4% today, interest paid monthly, H/O maybe willing to negotiate a higher rate on larger amounts, 1 mill +.- I get the idea that CIMB is desparate for deposits which is never a good sign.

UOB - 3.15 for 12 and 3.0 for 6, worthwhile noting because of the stability of the bank.

SCB (Siam) 2.8% for 10.

You've got me worried about CIMB now with that comment.

I was thinking of dropping a mill in there but maybe just go back to UOB again.

Maybe I can squeeze a little more than 3.15% out of them???

Good luck trying to squeeze anything out of UOB that's not already advertised, if you do manage then please let us know.

But 3.15% is not a bad deal, at least it covers inflation which is something the BAY account doesn't do, just a thought.

[isawasnake]

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.

This is why I continue with Krungsri even at a lesser rate

1- It is not fixed so not automatically taxed & may also be used for visa extension proof of funds

2- Even if it approaches 20k interest they warn you to open another with them & just move the money over

3- Interest paid monthly & compounds. Other banks pay twice yearly & based on only original deposit

Overall I have not found a better deal when taking it all into consideration

So how long is that 2.65% rate guaranteed for?

As it's not a fixed account that rate could change at any time!

Otherwise you are probably right.

I believe this account started at 2.9%, which was nice, and totally unbeatable imo. Almost scary good. It has indeed come down, buy I aint complaining. As others have noted, still a lot of benefits to this account, but yes they could lower it anytime. I always joke with my branch Krungsri manager, who is very nice by the way, that I will pull my funds if they lower it, and she wont see for my monthly deposits anymore. I guess when it dropped my bluff was called

[Billy The Kid]

Very interesting topics... Keep that threads going lads.

[jbrain]

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.

This is why I continue with Krungsri even at a lesser rate

1- It is not fixed so not automatically taxed & may also be used for visa extension proof of funds

2- Even if it approaches 20k interest they warn you to open another with them & just move the money over

3- Interest paid monthly & compounds. Other banks pay twice yearly & based on only original deposit

Overall I have not found a better deal when taking it all into consideration

So how long is that 2.65% rate guaranteed for?

As it's not a fixed account that rate could change at any time!

Otherwise you are probably right.

I believe this account started at 2.9%, which was nice, and totally unbeatable imo. Almost scary good. It has indeed come down, buy I aint complaining. As others have noted, still a lot of benefits to this account, but yes they could lower it anytime. I always joke with my branch Krungsri manager, who is very nice by the way, that I will pull my funds if they lower it, and she wont see for my monthly deposits anymore. I guess when it dropped my bluff was called

I think they are below 2.65% already.

When I opened my account 2 months ago it was 2.65%, but if I'm not mistaken it dropped to 2.35 last month in line with the Central Bank lowering interests.

[mania]

I think they are below 2.65% already.

When I opened my account 2 months ago it was 2.65%, but if I'm not mistaken it dropped to 2.35 last month in line with the Central Bank lowering interests.

No need to think

They did not drop from 2.65%

Ayudhya posts their rates every month here

http://www.krungsri.com/en/banking-rates.aspx

Their July 9th statement is the latest

This account is 1st on 2nd page of pdf file

[GavinK]

Does anyone have the 2013 historic rates for TMB No Fixed Account (could not find on their website). Interest credited to my account is less than the 2.75% which I thought this a/c had been paying since Jan...

[chiang mai]

Does anyone have the 2013 historic rates for TMB No Fixed Account (could not find on their website). Interest credited to my account is less than the 2.75% which I thought this a/c had been paying since Jan...

If it was not a fixed rate then it would almost certainly have been reduced when the Bank of Thailand reduced the base lending rate. Also, don't forget the 15% tax deduction.

Edited July 30, 2013 by chiang mai

[KittenKong]

Does anyone have the 2013 historic rates for TMB No Fixed Account (could not find on their website). Interest credited to my account is less than the 2.75% which I thought this a/c had been paying since Jan...

Rates went down at one point, then up again and are now 2.75% max depending on your balance. In fact they go up and down like a yoyo. For two months there was also a bonus if you made a deposit that month. They recently introduced fees for SMS service which used to be free.

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