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Bank Savings Interest Rates

chiang mai
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smedly Star Member

smedly

Posted
Posted

Kasikorn used to do good step-bonds and I used them for several years for my extension deposit. But at last renewal time they were offering nothing competitive, so I switched to a 12-month TMB TD with interest up-front paying 3%.

Currently the best bet would be that CIMB 3.5% account (if a farang can open one) and I will be looking at one of these for another TD that matures this month (currently 2.8% with CIMB).

For day-to-day use the KrungSri Mee Tae Dai account is good, and would be suitable for a retirement deposit also if you dont fancy tying money up for longer than you need to and dont mind getting a tad less interest. You could use just one Mee Tae Dai account for both day-to-day use and the retirement extension, as long as you are careful about dates and balances and remember to top it up well before your renewal.

The CIMB and TMB branches near View Talay 2 are clued-up about retirement extension letters, as is the Krungsri outside View Talay 7. All are helpful for farangs.

good informed post but I'm not too worried about a few % interest here and there so I would still like to keep my service with KK so TBH I'm just really looking for the best option for that bank only, not talking about a huge amount of money maybe 500k

So if you have something with Kasikorn at 2%+ and tax taken care of and immigration friendly that would be all I need - any suggestions..........................already have retirement extension - renewal next year with combo method

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Naam
Naam

it is extremely wise to stay within the guarantee limit of 1mm Baht or less! reason: should your bank go belly-up then your grandchildren or the grandchildren of your heirs will praise your wisdom an

MJCM
MJCM

For people who don't know which Bank BAY is, it's the Krungsri Ayuddhya Bank http://en.wikipedia.org/wiki/Bank_of_Ayudhya

fletchsmile
fletchsmile

There's no single answer that fits every occasion as to why some accounts are apparently open to foreigners and some not. There are different factors at play and sometimes more than one. They include:

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JAS21 Platinum Member

JAS21

Posted
Posted
KittenKong, on 01 Dec 2014 - 00:16, said:KittenKong, on 01 Dec 2014 - 00:16, said:KittenKong, on 01 Dec 2014 - 00:16, said:
fletchsmile, on 24 Nov 2014 - 20:16, said:fletchsmile, on 24 Nov 2014 - 20:16, said:fletchsmile, on 24 Nov 2014 - 20:16, said:

Heard that CIMB have some special promotion accounts for 14 and 15 month tenors paying 3.5%, so had a quick check on their website.

Couldn't find it on the English version of the website, ....

It's all over the front page now ....

attachicon.gifcimb01.jpg

Seems like a good deal.

I've just done the 3.5% account today ... used the Muang Thong Thani branch (Nonthaburi) ... they don't speak much English there so I needed madam. Took at least a half hour. Just needed passport and Yellow Book. They checked that I had an up to date visa plus an up to date 90Day report. I checked that they will give me a tax cert at the end of the account.

Was going to do the BB 3yr 3.25% Bond available from today but changed my mind.

  • Like 1
KittenKong Ruby Member

KittenKong

Posted
Posted

For anyone interested, I opened a 3.5% 14-month account with CIMB this morning. Initially I was told "Thai only" but then one of the staff who knows me got involved and that problem was rapidly overcome. I showed just my passport as I am an existing customer with existing TDs. I signed a new FACTA form.

This account is available as a 15-month TD for new customers, or a 14-month TD for existing customers, at the same rate. thumbsup.gif

Interest is payable either at the end of the period or monthly to a savings account, at the same rate.

I hope this account, or a similar replacement, will still be available when my retirement extension TD matures in February next year. From the ads it seems like it wont be.

meatboy Ruby Member

meatboy

Posted
Posted

For anyone interested, I opened a 3.5% 14-month account with CIMB this morning. Initially I was told "Thai only" but then one of the staff who knows me got involved and that problem was rapidly overcome. I showed just my passport as I am an existing customer with existing TDs. I signed a new FACTA form.

This account is available as a 15-month TD for new customers, or a 14-month TD for existing customers, at the same rate. thumbsup.gif

Interest is payable either at the end of the period or monthly to a savings account, at the same rate.

I hope this account, or a similar replacement, will still be available when my retirement extension TD matures in February next year. From the ads it seems like it wont be.

yep i doubt it aswell,i got 2 fixed that mature in jan,but i suppose as their tax yr.starts jan.1st unless they have more out than whats come in these offers will cease end dec.

DavidMavec Silver Member

DavidMavec

Posted
Posted

A Thai friend told me she recently invested in a 24 month savings account with TMB called Up&Up and she told me it pays 4% interest per year. That sounds too good to be true to me, does anyone know about this specific savings account? I am outside of Thailand at the moment or would go and check myself.

fletchsmile Platinum Member

fletchsmile

Posted
Posted

A Thai friend told me she recently invested in a 24 month savings account with TMB called Up&Up and she told me it pays 4% interest per year. That sounds too good to be true to me, does anyone know about this specific savings account? I am outside of Thailand at the moment or would go and check myself.

It's a tiered rate, where a lower rate is paid in earlier months, rising to the 4% higher rate in later months. So the 4% is a headline grabber, the average rate over the term was 2.something % when I last looked

Cheers

Fletch :)

KittenKong Ruby Member

KittenKong

Posted
Posted

A Thai friend told me she recently invested in a 24 month savings account with TMB called Up&Up and she told me it pays 4% interest per year. That sounds too good to be true to me, does anyone know about this specific savings account? I am outside of Thailand at the moment or would go and check myself.

Your Thai friend didnt read the small print. It's a step-bond that pays 4% at the end but only 2.375% on average.

No need to be here to check: https://www.tmbbank.com/personal/deposits/timeDeposits/upandup-en.php

meatboy Ruby Member

meatboy

Posted
Posted

A Thai friend told me she recently invested in a 24 month savings account with TMB called Up&Up and she told me it pays 4% interest per year. That sounds too good to be true to me, does anyone know about this specific savings account? I am outside of Thailand at the moment or would go and check myself.

being at land and house bank this week i saw they have a regular savings acc.paying 4.10% this can go up or down.

this is the acc.i tried to open this yr.but after much hassle they told me thais only.i think its over 3yrs.and you must put the same in every month 1,000bht - 16,500bht.

so i will grobble to them and let the wife open it. oh its TAX FREE.biggrin.png

falang07 Silver Member

falang07

Posted
Posted

Google translate says:

The interest of 5% per year.
5% cash back for every 20,000 baht for the first year premium.
A tax break
Life protection
Cash back every year and 6% of the sum insured.

The minimum amount to open an account to deposit 5 is 50,000 baht and up to 2 times the first year premium.

So it seems this works only up to 2x the first year premium of the life insurance. So 5% is real but you must buy insurance and the deposit is limited to twice the premium.

jpinx Platinum Member

jpinx

Posted
Posted

What Fees and Taxes are involved - especially if transferring in from abroad ?

Not sure what you mean, how is this related to transferring from abroad? This is a standard fixed deposit account, I suppose you can not transfer from abroad.

If you transfer money in from abroad to invest in this scheme -- what fees, rates and taxes are charged?

chiang mai Star Member

chiang mai

Posted
  • Author
Posted

What Fees and Taxes are involved - especially if transferring in from abroad ?

Not sure what you mean, how is this related to transferring from abroad? This is a standard fixed deposit account, I suppose you can not transfer from abroad.

If you transfer money in from abroad to invest in this scheme -- what fees, rates and taxes are charged?

You're confusing two processes, the first is the cost of transferring money from abroad and the second is any charges or fees associated with investing in a 15 month bond. Taking the easy one first: there are no fees or charges associated with a 15 month fixed rate bond. The charges associated with transferring money from abroad vary based on the bank, the routing and the amount involved.

jpinx Platinum Member

jpinx

Posted
Posted




What Fees and Taxes are involved - especially if transferring in from abroad ?

Not sure what you mean, how is this related to transferring from abroad? This is a standard fixed deposit account, I suppose you can not transfer from abroad.

You're confusing two processes, the first is the cost of transferring money from abroad and the second is any charges or fees associated with investing in a 15 month bond. Taking the easy one first: there are no fees or charges associated with a 15 month fixed rate bond. The charges associated with transferring money from abroad vary based on the bank, the routing and the amount involved.

================================

okay ...... If you transfer money in from abroad to invest in this scheme -- what fees, rates and taxes are charged by this bank ? Also - it'd be worth knowing of any fees, taxes, charges or conditions applied by this bank at the end of the term ;)

chiang mai Star Member

chiang mai

Posted
  • Author
Posted

What Fees and Taxes are involved - especially if transferring in from abroad ?

Not sure what you mean, how is this related to transferring from abroad? This is a standard fixed deposit account, I suppose you can not transfer from abroad.

You're confusing two processes, the first is the cost of transferring money from abroad and the second is any charges or fees associated with investing in a 15 month bond. Taking the easy one first: there are no fees or charges associated with a 15 month fixed rate bond. The charges associated with transferring money from abroad vary based on the bank, the routing and the amount involved.

================================

okay ...... If you transfer money in from abroad to invest in this scheme -- what fees, rates and taxes are charged by this bank ? Also - it'd be worth knowing of any fees, taxes, charges or conditions applied by this bank at the end of the term wink.png

There are no fees or charges associated with a term deposit at any bank in Thailand either during or at the end of the term. You can withdraw your funds at any time during the term, subject to a loss of interest but this same condition exists at all Thai banks - the interest you would have earned is replaced by the basic savings rate of the bank, currently about 0.75%. The interest is taxed at 15% but this can be reclaimed the following year from the tax authorities.

I have already described the variables associated with transferring funds from overseas, to any Thai bank.

binnsy1 Senior Member

binnsy1

Posted
Posted

Has anyone who has had a fixed term account with CIMB ever had to get there hands on some cash for an emergency?If so what are the costs/fees for doing so?

Italian guy Explorer Member

Italian guy

Posted
Posted

I've recently opened a fix deposit with Islamic Bank of Thailand. 11 months 3.11%

I've missed the CIMB rate (stupid me)...

However 3.11 on 11 months with iBank isn't really bad and may be interesting for some of you.

Check it out.

meatboy Ruby Member

meatboy

Posted
Posted

Has anyone who has had a fixed term account with CIMB ever had to get there hands on some cash for an emergency?If so what are the costs/fees for doing so?

only cost b1 is loss of interest.

  • Like 2
AyG Platinum Member

AyG

Posted
Posted

Just saw 3.1% pa for 7 month deposit at Bangkok Bank

It would appear to be true. Minimum deposit 1 million Baht. For 200,00 to 1 million it's 2.5%.

  • Like 1
Pib Star Member

Pib

Posted
Posted

Just as FYI, a few days ago my current Bangkok Bank fixed account matured so I went into roll the funds over into another fixed account...whatever I thought was the best deal for me. I chose the 11 month, 2.8% fixed deposit. And where I say roll over the funds that actually results in that account being closed and a new account being opened with all the associated new account paperwork. Now around a year ago, for some of Bangkok Bank higher paying fixed accounts like the account I rolled the funds into started having the following condition:


  • The minimum opening amount and the minimum amount for any subsequent deposit for the 11-Month Fixed Deposit Account is 100,000Bt. The funds for opening the account must not have been transferred or withdrawn from an existing Bangkok Bank account.

So, when I went into roll the account over I figured they may not let me transfer the funds (rollover) the funds from my current, matured fixed account to the 11 month, 2.8% fixed account since the deposit had above condition listed about the funds not coming from another Bangkok Bank account. But no problem. Funds rolled over into the new fixed account no problem. Now they didn't know this, but if they had not allowed me to roll the funds over into the 11 month fixed account I would have withdrawn my approx Bt900K, took the money to the next door Krungsri Bank about 20 steps away in the maill, and deposited it in my Krungsri Mee Tai Dai account paying 2.3%. So I guess the condition the money can not come from another Bangkok Bank account is not enforced...or maybe it don't apply when rolling funds over from one fixed account to another fixed account. Anyway, I'm happy...and Bangkok Bank should be happy as they get to keep making money on my deposit...win-win situation.

I'm American and opening the new account presented absolutely no problem (nor when I opend a Krungsri account several months ago)...in addition to all the standard new account forms the bank rep just gave the one nationality questionnaire to fill out and the IRS W-9 form where I entered my name, address, social security number and signed the form...takes about an extra 5 minutes to read and complete both easy forms. No problem.

  • Like 1
fletchsmile Platinum Member

fletchsmile

Posted
Posted

Banks spend quite a bit of time analysing maturities and rates of loans and deposits. This looks at both contractual maturities and behavioural maturities, which are then assessed vs actual and expected interest rates, and where they will reprice. It's an area where a treasury function or asset/liability function makes money, and use financial modelling.

There is some logic behind their actions, though I don't know what their actual policy is. In terms of rationale that would help explain it: The bank don't really want you cannibalising one account for another - particularly on promotions. Savings deposit accounts and fixed deposits accounts differ in their contractual and behavioural nature:

- For savings deposit, contractually it can be withdrawn any time. However, everyone doesn't withdraw on demand and the behavioural pattern is more important than the technical contractual terms. Banks know there is a core amount that will be there, and they can model behaviour of minimum balances, how sticky it is etc. Switching to a different product because of an incentive distorts this behaviour

- For a fixed deposit, on the other hand the contractual terms dominate. People rarely cash in before the term, so contractual term is more important than behavioural pattern. The new product will not generally cause people to cash in a fixed deposit. They will not change their behaviour during the course of the contract. In addition banks look at retention rates on fixed deposits (% of deposits left with the bank once it matures). A promotional rate will help them increase the retention rate once it matures.

You could also say that once the fixed deposit matures it is no longer an existing account :) I would use this argument.

BTW With this simple rule, it would also be difficult to stop you round tripping the money - i.e just transferring 100k to another bank, then transferring a slightly different amount back

Cheers

Fletch :)

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