Bank Savings Interest Rates

[falang07]

OK, I was too quick:

http://www.scb.co.th/stocks/media/ratesfees/deposit-en-57-70.pdf

Fixed Rising rate 15 Months

Month 1 - 6 2.00%

Month 7 - 12 3.00%

Month 13 - 15 4.00%

Average rate = 2.80%

[Sophon]

K-Bank also offer 2.8% p.a. on a 14 month fixed deposit. Offer open until the end of July.

Sophon

[chiang mai]

It looks as though 2.8% is the going rate for anywhere between 8 and 15 months, Bangkok Bank, CIMB and Kasikorn all offering similar. If all you want is fixed rates and nothing more risky, 2.8% for 15 months might not be a bad deal, too much smoke and mirrors on UK interest rates for me to feel comfortable and too much money sloshing around that nobody really wants.

It's perhaps worth pointing out that 2.8% tax free still beats the UK onshore alternatives which are declining as we speak, Nationwide IOM offers 1.45% (no tax), sad, nobody want our money and the trend looks likely to continue.

EDIT: to add link showing that UK onshore rates are falling.

Edited July 2, 2014 by chiang mai

[Choonpon]

I would like to know interest earned from FD (less than 150,000 baht) can be reclaimed back. Does that mean interest earned 150,000 baht and above is taxable? Please advise. Thank you.

[JesseFrank]

Bank of Ayudhya is offering an 8 month fixed step account.

I don't remember the exact periods but it goes like month 1&2 2.00%, month 3&4 2.75% and the last 4 months 3.75%.

The thing is that the adjust the acquired interest rate retroactive. So when month 3 start your interest from the first 2 months will be adjusted to 2.75%, and at the beginning of month 5 your interest of the previous months will be adjusted to 3.75%.

Reason is that you can withdraw at the end of each period.

The account is subject to withholding taxes.

[JesseFrank]

"mee tae dai looks a lot more simple with average over the 8 months of 2.75%b and I can claim the tax back" - my understanding is that's a savings account and not a fixed rate/term product that allows two withdrawals per month, if that's correct then tax cannot be reclaimed.

The original poster is confusing mee tae dai (a savings account with limited withdrawals, currently offering 2.3%) with Krung Sri's 8 month fixed, step up interest rate account which averages out at 2.75% over the eight months.

Tax can potentially be reclaimed on both types of account. Term or savings, it makes no difference.

I just posted about that account, but to me it was not explained as that the average 2.75% was, but that the interest would be adjusted for the previous months to the highest rate of 3.75%.

[chiang mai]

I would like to know interest earned from FD (less than 150,000 baht) can be reclaimed back. Does that mean interest earned 150,000 baht and above is taxable? Please advise. Thank you.

Yes, but only by non-tax payers.

and yes again, above 150k is taxable.

[fletchsmile]

StanChart e-saver, non fixed term, lowered to 2.5% p.a. recently.

https://www.sc.com/th/interest-fees/_documents/e_int_20140604_WM.pdf

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Reduced again wef 1 July

Now 2.3%

Cheers

Fletch

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[Sophon]

"mee tae dai looks a lot more simple with average over the 8 months of 2.75%b and I can claim the tax back" - my understanding is that's a savings account and not a fixed rate/term product that allows two withdrawals per month, if that's correct then tax cannot be reclaimed.

The original poster is confusing mee tae dai (a savings account with limited withdrawals, currently offering 2.3%) with Krung Sri's 8 month fixed, step up interest rate account which averages out at 2.75% over the eight months.

Tax can potentially be reclaimed on both types of account. Term or savings, it makes no difference.

I just posted about that account, but to me it was not explained as that the average 2.75% was, but that the interest would be adjusted for the previous months to the highest rate of 3.75%.

You misunderstood/were misinformed. From Krungsri's homepage:

8-months Step Up Time Deposit Account

Account opening from 11 Jun 2014 onwards

Month 1 st - 3 rd 2.30

Month 4 th - 6 th 2.70

Month 7 th - 8 th 3.50

(Average Rate = 2.75%)

3.50% p.a. (the highest rate is 3.5% not 3.75%) for eight months would be out of line with the current market.

Sophon

[Sophon]

Bangkok bank now offering 2.8% for 11 months FD.

It's worth noting that the conditions of this account says that it has to be "new" money. When opening this account you cannot transfer money from another Bangkok Bank account. The promotion is intended to bring new funds to Bangkok Bank.

However, your bank manager might be flexible. I just opened one of these accounts yesterday with money from another (expired) fixed deposit account in Bangkok Bank. They are trying to attract new funds, but they will probably realize that it makes no sense being to inflexible and lose existing deposits to other banks (who offer similar interest rates).

Sophon

[Choonpon]

Bangkok bank now offering 2.8% for 11 months FD.

It's worth noting that the conditions of this account says that it has to be "new" money. When opening this account you cannot transfer money from another Bangkok Bank account. The promotion is intended to bring new funds to Bangkok Bank.

However, your bank manager might be flexible. I just opened one of these accounts yesterday with money from another (expired) fixed deposit account in Bangkok Bank. They are trying to attract new funds, but they will probably realize that it makes no sense being to inflexible and lose existing deposits to other banks (who offer similar interest rates).

Sophon

I opened this FD ac from my expired FD ac too. They didn't mention about new money

[falang07]

what would prevent you withdrawing the money, and putting back as "new"?

[falang07]

BTW, these Step Up Time Deposit Accounts with gradually increasing interest rates seem to be the newest marketing trick of Thai banks, I am sure many Thais with basic school education only will be easily fooled by it

[Sophon]

BTW, these Step Up Time Deposit Accounts with gradually increasing interest rates seem to be the newest marketing trick of Thai banks, I am sure many Thais with basic school education only will be easily fooled by it

Actually, it was the newest marketing trick 3-4 years ago. It seems now most of the major banks are going back to traditional fixed deposit accounts.

Sophon

[KittenKong]

They are trying to attract new funds, but they will probably realize that it makes no sense being to inflexible and lose existing deposits to other banks (who offer similar interest rates).

When did any bank display any sense?

Banks spend fortunes attracting new customers and yet are completely oblivious to all the old ones that leave to become new customers elsewhere.

[Sophon]

They are trying to attract new funds, but they will probably realize that it makes no sense being to inflexible and lose existing deposits to other banks (who offer similar interest rates).

When did any bank display any sense?

Banks spend fortunes attracting new customers and yet are completely oblivious to all the old ones that leave to become new customers elsewhere.

Well, as you can see from our posts both the branch used by Choonpon and mine did display common sense and looked after their existing customers.

Sophon

[KittenKong]

They are trying to attract new funds, but they will probably realize that it makes no sense being to inflexible and lose existing deposits to other banks (who offer similar interest rates).

When did any bank display any sense?

Banks spend fortunes attracting new customers and yet are completely oblivious to all the old ones that leave to become new customers elsewhere.

Well, as you can see from our posts both the branch used by Choonpon and mine did display common sense and looked after their existing customers.

Your particular branch may have one or two staff with brains but generically banks are a bit lacking. It's all to do with the mad pursuit of growth at any price, which is responsible for most of the world's financial problems of the last half century.

[chiang mai]

So, lots of 2.8% fixes out there, anything that beats that?

[Choonpon]

Bangkok bank fixed term investment-6 mths, 2.55%. No tax.

Those whose FD interest exceeded 150k baht can consider this, to avoid tax.

[chiang mai]

Bangkok bank fixed term investment-6 mths, 2.55%. No tax.

Those whose FD interest exceeded 150k baht can consider this, to avoid tax.

If there's no tax deducted then it's probably not a fixed rate product, especially since you used the word investment. Since this thread is about bank savings rates and not investments, can we be clear about what is posted since the risk is different between those products.

[cloghead]

Bangkok bank now offering 2.8% for 11 months FD.

It's worth noting that the conditions of this account says that it has to be "new" money. When opening this account you cannot transfer money from another Bangkok Bank account. The promotion is intended to bring new funds to Bangkok Bank.

However, your bank manager might be flexible. I just opened one of these accounts yesterday with money from another (expired) fixed deposit account in Bangkok Bank. They are trying to attract new funds, but they will probably realize that it makes no sense being to inflexible and lose existing deposits to other banks (who offer similar interest rates).

Sophon

I opened this FD ac from my expired FD ac too. They didn't mention about new money

My FD account at Bangkok Bank expired today and I asked to roll over the entire amount (including interest accrued) into the new 11-month/2.8% account. Everything seemed OK--like the previous 6 or 7 times when I've done exactly the same--quick and easy.

After a few minutes on the computer to BKK the manager said no can do because I'm a Yank. I asked her to explain what the problem was and she couldn't give me an answer. Policy change or what?

Has anyone else encountered this situation recently? By the way, this branch is in Trat Province and I've had excellent service with them for many years...

[TallGuyJohninBKK]

After a few minutes on the computer to BKK the manager said no can do because I'm a Yank. I asked her to explain what the problem was and she couldn't give me an answer. Policy change or what?

Are you trying to say you're an American who's referring to himself as a "Yank"????

Kind of makes one wonder, whom you've been associating with lately....

If the manager was referencing you being an American, it's probably relating to some misunderstanding she has over the whole FATCA reporting issue between Thai banks and the U.S. government.

I say misunderstanding because, AFAIK, BKK Bank intends on complying with FATCA and I haven't heard anything about any changes to account access for their American customers. And I'm one of them.

You might consider calling BKK Bank's main customer phone service number in BKK, and explain the situation of what happened including the detail relating to being an American, and see what their response is.

Edited July 7, 2014 by TallGuyJohninBKK

[MadMac]

Islamic Bank still has 3%. Written before (12 months). No harm done, they pay you interest

[Oorinara]

LH Bank 15 month FD, 3% p.a.

http://www.lhbank.co.th/promotion/description/1496

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[meatboy]

LH Bank 15 month FD, 3% p.a.

http://www.lhbank.co.th/promotion/description/1496

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LH bank seems ok.more like a building soc.[uk] the rates are pretty reasonable and have not dropped as much as others,

jan 17th.this yr.the wf.got 3.50%,then 10days later it was dropped to 3.20% that is what I got.

anyone thinking of going there needs,as I am over 65 I have a retirement stamp[visa status] in my passport,also a tax id,

you will need proof of residence and I did show them my driving licence.

been there since and they do seem to have a little more upstairs helpful.

[Oorinara]

Tanachart Bank, cert. of deposit, 18 months, 3% p.a., currently prevailing.

http://www.thanachartbank.co.th/TbankCMSFrontend/defaulten.aspx

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[chiang mai]

This is very slightly worrying,SCB, one of the strongest banks in Thailand is offering 2.4% for 8 months.

LH Bank, Islamic Bank and Thanachart, three of the weakest financial institutions are offering 3%+.

Of course all deposits are insured by the BOT, but...!

[meatboy]

maybe cm.can give more details,thai gov.are issuing 7yr.and 10yr.bonds paying 4.25% and 4.75%.

what the wf.has told me the first lot are for 60yr.olds upwards,then afteropen to anyone,from today.

banks involved,krung thai,kasikorn and scb,there may be another bank. interest paid every 6months.

not sure what the conditions are.

this would suit anyone who needs a bit of interest to top up their pensions,but I think the max.buy is 2million bht.

that's 85,000bht.every 6months for yours and the wifes.x4.25,and 95,000bht at 4.75.

[chiang mai]

maybe cm.can give more details,thai gov.are issuing 7yr.and 10yr.bonds paying 4.25% and 4.75%.

what the wf.has told me the first lot are for 60yr.olds upwards,then afteropen to anyone,from today.

banks involved,krung thai,kasikorn and scb,there may be another bank. interest paid every 6months.

not sure what the conditions are.

this would suit anyone who needs a bit of interest to top up their pensions,but I think the max.buy is 2million bht.

that's 85,000bht.every 6months for yours and the wifes.x4.25,and 95,000bht at 4.75.

I don't have clue on this MB but it';s a good find, I'll do some digging and report back, perhaps Fletch can add to this since I'm sure he will know?

[meatboy]

maybe cm.can give more details,thai gov.are issuing 7yr.and 10yr.bonds paying 4.25% and 4.75%.

what the wf.has told me the first lot are for 60yr.olds upwards,then afteropen to anyone,from today.

banks involved,krung thai,kasikorn and scb,there may be another bank. interest paid every 6months.

not sure what the conditions are.

this would suit anyone who needs a bit of interest to top up their pensions,but I think the max.buy is 2million bht.

that's 85,000bht.every 6months for yours and the wifes.x4.25,and 95,000bht at 4.75.

I don't have clue on this MB but it';s a good find, I'll do some digging and report back, perhaps Fletch can add to this since I'm sure he will know?

it was in the thai rath,mon.or tues. the wife says after the sale to the 60s or over there is no limit of deposits.