Bank Savings Interest Rates

[chiang mai]

Wouldn't mind sticking 100k away to forget about. Though don't want it fixed just incase.

No WP, just a Non-Imm O as I'm not working here.

My K-Bank accounts pay almost nothing.

Is the BAY 2.65% paid monthly still the best deal in town?

whats wrong with fixed accs.you can take it out any time you want[you only loose some interest]

have you a place of residence?

drivers licence?

most of the banks that offer good rates will ask to see your visa status,letter of proof of your address,

and oh,after reading that americans are having problems opening bank accs.what nationality are you.

my last fixed acc.opened in jan.this yr.the bank had my,home address,drivers licence,tax id.card retirement status in my passport and it still took a call to their head office before my local branch would open the acc.and I was putting in a substantial amount.

I'm an EU national. 5 Yr motorbike DL and 1 Yr Car DL. Non-O visa (had them for the past 3 years). House rented in my name. Age mid-30's. Just no WP as not working here.

I'd rather have the interest paid monthly and not at maturity, which is why I would prefer to have a non-fixed account. But perhaps that is possible.

Most fixed rate products allow you to choose either interest paid monthly or interest paid at maturity. Also, with the fixed rate products, at the end of the year you can reclaim the tax that has been deducted which is something you can't do with regular savings accounts.

[KittenKong]

I'd rather have the interest paid monthly and not at maturity, which is why I would prefer to have a non-fixed account.

How about the TMB fixed accounts that pay the interest up-front? I have a 12-month one of these and the rate I got for it recently (3%) was actually better than nearly all the rates available elsewhere for a normal time deposit with interest paid at the end.

Bizarrely TMB dont advertise these accounts and rates at all, even in the branches. You have to grab someone and question them about it. Very odd.

[Som wat]

^ Thanks. What's the minimum deposit?

What do you mean paid up front?

[meatboy]

Wouldn't mind sticking 100k away to forget about. Though don't want it fixed just incase.

No WP, just a Non-Imm O as I'm not working here.

My K-Bank accounts pay almost nothing.

Is the BAY 2.65% paid monthly still the best deal in town?

whats wrong with fixed accs.you can take it out any time you want[you only loose some interest]

have you a place of residence?

drivers licence?

most of the banks that offer good rates will ask to see your visa status,letter of proof of your address,

and oh,after reading that americans are having problems opening bank accs.what nationality are you.

my last fixed acc.opened in jan.this yr.the bank had my,home address,drivers licence,tax id.card retirement status in my passport and it still took a call to their head office before my local branch would open the acc.and I was putting in a substantial amount.

I'm an EU national. 5 Yr motorbike DL and 1 Yr Car DL. Non-O visa (had them for the past 3 years). House rented in my name. Age mid-30's. Just no WP as not working here.

I'd rather have the interest paid monthly and not at maturity, which is why I would prefer to have a non-fixed account. But perhaps that is possible.

you can try thai gov.savings bank or land and house I know they will do monthly interest on fixed accs.but don't forget on all fixed I have only had 1 that didn't withhold tax,but you can claim it back.make sure you have a letter confirming your residence from your landlord.

[KittenKong]

Minimum is 10K.

https://www.tmbbank.com/personal/deposits/timeDeposits/quick-interest-en.php

The interest for the whole term is paid within 7 days of opening the account. If you subsequently withdraw before the end of the term you have to repay the interest.

[chiang mai]

If you look very closely at accounts that pay interest up front you'll see that it's an illusion. Either the account can't be closed for the term of the deposit (unlike ordinary fixed rate accounts) and/or the interest rate is based on simple interest. Banks don't give anything away for free.

EDIT: The following from the TMB site:

• Interest will be paid on day 7th counting from the first day that customers deposit the money. The Interest paid will be transferred to the linked savings account or current account based on customer preference.
• If money is withdrawn prior to the 3 months period, the interest will not be paid.
• If money is withdrawn after the 3 months period but before maturity, normal savings rate (at the day of account opening) will be applied together with deduction on withholding tax. Advance interest paid and withholding tax will be deducted from the principal.
• Upon the maturity date, the principal will be automatically renewed to the same term.
• Other fees are applied in accordance with bank notifications on service fees, fines related to deposits, credit facilities and other bank fees.

As I suspected, the funds have to remain on deposit for the full term otherwise normal (low) savings rates apply, it's all really just a marketing gimmick and the effect is the same as a regular fixed rate product..

Edited April 7, 2014 by chiang mai

[KittenKong]

If you look very closely at accounts that pay interest up front you'll see that it's an illusion.

Not exactly an illusion; I get the full advertised 3% on my "quick interest" 12-month TMB account. I'm no worse or better off by having it paid at the beginning or the end of the term, but I am better off in that the rate I'm getting happens to be higher than that offered elsewhere at the moment.

The early withdrawal penalties you mention also apply to regular fixed term deposits where the interest is paid at the end of the term, so no change there.

[chiang mai]

If you look very closely at accounts that pay interest up front you'll see that it's an illusion.

Not exactly an illusion; I get the full advertised 3% on my "quick interest" 12-month TMB account. I'm no worse or better off by having it paid at the beginning or the end of the term, but I am better off in that the rate I'm getting happens to be higher than that offered elsewhere at the moment.

The early withdrawal penalties you mention also apply to regular fixed term deposits where the interest is paid at the end of the term, so no change there.

Yes you're right in every respect. When I say it's an illusion I mean that the advertising on the product is meant to portray the idea that the customer receives the interest up front and in many cases, the idea that it might have to be repaid will not occur to many people. But again you are right, the product is exactly the same as any other fixed rate product in every other way..

[KittenKong]

When I say it's an illusion I mean that the advertising on the product is meant to portray the idea that the customer receives the interest up front and in many cases, the idea that it might have to be repaid will not occur to many people.

Agreed. In this respect the "quick interest" account is a bit like step-bonds. They also give the impression on the advertising that you will be getting more than you are actually getting, but even so my two previous K-Bank step-bonds were well worth having with the average interest around 3.7%pa over the two terms which beat all regular fixed term deposits I saw at the time.

Always read the small print.

[meatboy]

yes k.i like those stepped fixed accs.but they seemed to have disappeared,the last one the mrs.had 18month term av.3.65% scb.

plus you get the tax certificate at the end of the step so its easy to keep track of the tax you've paid as to not go over the threshold,this is what will happen next yr.all but 1 of our fixed accs.mature 2015 so we are going to have to pay a little tax.2016.

[kokesaat]

My 800k retirement fixed term account came dupe today at SCB. New rate, 6 months for 1.35%. Thanachart is offering 8 months at 2.6%. I've never done business with any but the big 3 banks in the 17 years I've been here. Is there a reason not to bail on SCB and go t Thanachart?

[chiang mai]

My 800k retirement fixed term account came dupe today at SCB. New rate, 6 months for 1.35%. Thanachart is offering 8 months at 2.6%. I've never done business with any but the big 3 banks in the 17 years I've been here. Is there a reason not to bail on SCB and go t Thanachart?

The rates on offer by the different banks are indicative of their need for funds, SCB (by virtue of their rate) is saying they don't need your money, Thanachart on the other hand is trying to tempt you. So...., what do you want, low risk or higher return? In truth you could probably go with Thanachart in the knowledge that you'll get their higher rate, that is unless you've got bad dreams about which financial institution was mostly responsible for the 1997 crash. But since the BOT deposit guarantees remain in place, I think I would sleep well at night if I went with Thanachart. BTW there's only about THB 10k difference between the two rates, over the course of a year.

[KittenKong]

My 800k retirement fixed term account came dupe today at SCB. New rate, 6 months for 1.35%. Thanachart is offering 8 months at 2.6%. I've never done business with any but the big 3 banks in the 17 years I've been here. Is there a reason not to bail on SCB and go t Thanachart?

TMB recently gave me 3% for 12 months for my retirement extension deposit, interest paid in advance as mentioned above.

Is there a reason not to ditch any bank that doesn't pay a competitive rate? I had no qualms about dumping Kbank when they offered me a derisory rate for my retirement deposit renewal.

[meatboy]

My 800k retirement fixed term account came dupe today at SCB. New rate, 6 months for 1.35%. Thanachart is offering 8 months at 2.6%. I've never done business with any but the big 3 banks in the 17 years I've been here. Is there a reason not to bail on SCB and go t Thanachart?

there's no loyalty at any of the banks,so do what I do if they cant match rates elsewhere its by by.

[55Jay]

Is the BAY 2.65% paid monthly still the best deal in town?

Only 2.35% now.

Pity.

Still, better than getting almost nothing in an average K Bank account.

I'm thinking of putting 700-900k baht into a small condo in Chiang Mai. Return would be about 5%. Plus it would be there incase of any future emergencies, plus a place for my daughter to have in Thailand in the future.

In the meantime putting 100-200k into a savings account is on my list.

2.35% at BAY, unfixed, paid monthly is topping the list so far. Thanks.

Somewhat similar circumstance, I went with BAY (even at 2.35%) this time instead of fixed accts again, as a property purchase is likely in our future later this year.

As noted on these threads, the manager did indeed offer to track my interest accrual and open another acct when I approach 20k, to avoid tax withholding. I prefer this idea over tax refunds in the following year, as well as the Mee Tee Dai acct's compounding monthly interest I can access, and that if I need to pull out all my capital, won't have lost the time and interest.

[Tywais]

My 3.25% 10 month fixed with Bangkok Bank just expired. My bank officer came to my office today to show me what is available. She said she can get me 2.85% 6 months, no tax withholding, on April 16.

[55Jay]

My 3.25% 10 month fixed with Bangkok Bank just expired. My bank officer came to my office today to show me what is available. She said she can get me 2.85%, no tax withholding, on April 16.

I know this is about bank int rates but I've always wanted to ask how a bank can offer "no tax" on a fixed account when my understanding is they have to withhold by law if more than 20,000 interest a year.

What's the catch with these "no tax" fixed accounts?

[Tywais]

My 3.25% 10 month fixed with Bangkok Bank just expired. My bank officer came to my office today to show me what is available. She said she can get me 2.85% 6 month, no tax withholding, on April 16.

I know this is about bank int rates but I've always wanted to ask how a bank can offer "no tax" on a fixed account when my understanding is they have to withhold by law if more than 20,000 interest a year.

What's the catch with these "no tax" fixed accounts?

My 10 month one did withhold. This one I believe is based on government bonds.

[meatboy]

My 3.25% 10 month fixed with Bangkok Bank just expired. My bank officer came to my office today to show me what is available. She said she can get me 2.85%, no tax withholding, on April 16.

I know this is about bank int rates but I've always wanted to ask how a bank can offer "no tax" on a fixed account when my understanding is they have to withhold by law if more than 20,000 interest a year.

What's the catch with these "no tax" fixed accounts?

I posted back in jan.that my 399days fixed acc.with thai gov.savings bank,they surprised me by not taking tax,out of all me and the wife have had dozens, that's the first time.

[55Jay]

My 3.25% 10 month fixed with Bangkok Bank just expired. My bank officer came to my office today to show me what is available. She said she can get me 2.85%, no tax withholding, on April 16.

I know this is about bank int rates but I've always wanted to ask how a bank can offer "no tax" on a fixed account when my understanding is they have to withhold by law if more than 20,000 interest a year.

What's the catch with these "no tax" fixed accounts?

I posted back in jan.that my 399days fixed acc.with thai gov.savings bank,they surprised me by not taking tax,out of all me and the wife have had dozens, that's the first time.

Huh. That would of been nice. Just closed my 2 Bkk Bank fixed accts and got whacked for nearly 10k in tax. Hope I remember to file for a refund 9 months from now.

[chiang mai]

My 3.25% 10 month fixed with Bangkok Bank just expired. My bank officer came to my office today to show me what is available. She said she can get me 2.85%, no tax withholding, on April 16.

I know this is about bank int rates but I've always wanted to ask how a bank can offer "no tax" on a fixed account when my understanding is they have to withhold by law if more than 20,000 interest a year.

What's the catch with these "no tax" fixed accounts?

There's no catch, it can be done a a number of different ways but it's really all marketing:

- they can pay you a higher rate of tax that covers the tax payments that the bank then makes on your behalf;

- they can issue the product based on taxable government bonds as Tywais mentioned.

- they can cap the amount of interest that is earned to make sure it doesn't exceed the personal tax free allowance.

[Som wat]

Anyone know the current Krungsri Mee Tae Dai rate?

Edited April 9, 2014 by Som wat

[55Jay]

Anyone know the current Krungsri Mee Tae Dai rate?

Still holding 2.35% for mid-range.

[Som wat]

Great thanks.

Think I'll open one of them instead of the BAY. Interest is paid monthly right?

[55Jay]

Great thanks.

Think I'll open one of them instead of the BAY. Interest is paid monthly right?

Krungsi / BAY (Bank of Ayudhya) Same same.

Yes, at least I hope so! Only had my accts for 3 weeks, so I should see some int by next week.

Edited April 9, 2014 by 55Jay

[Aldebaran1981]

What is the personal tax free allowance? Applies to Thai and farang?

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[sccc466]

I have an account with K bank and what they do is they use the residential address of my friend before they allow me to open.

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[chiang mai]

What is the personal tax free allowance? Applies to Thai and farang?

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Up to THB 150K income can be excluded from tax.

As a foreigner that means that the first THB 30k of interest paid on FIXED rate savings bonds can be reclaimed:

http://www.rd.go.th/publish/6045.0.html

[Aldebaran1981]

So that means interest earn so long as less than 150k is tax free?

I mean for local Thai, not farang

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[chiang mai]

So that means interest earn so long as less than 150k is tax free?

I mean for local Thai, not farang

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Everyone has a personal allowance of THB 150k, locals and foreigners, that means that the first THB 150k of income derived from within Thailand is free of tax.

BUT, that does not apply to tax that is paid on financial products such as regular savings accounts, it only applies to fixed term/rate products.