Bank Savings Interest Rates

[mikelao]

Why dont you look at a bank in Laos? 6% per year on USD

[chiang mai]

Why dont you look at a bank in Laos? 6% per year on USD

Currency risk, given that your deposit has to be converted into kip;

country risk/economic, Laos is a very poor communist country;

deposit protection, does not exist;

institution risk, Laos banks are not famed for their stability;

non-resident taxes on income and at repatriation, unknown;

and so on.

We've been there many times in the past on such deals in Laos equivalent countries, the answer is rarely if ever good.

[mikelao]

Your deposit can be direct in USD/BAHT or KIP. I have both Kip and USD in fixed deposits, have done for years.

[ExPratt]

I have Time deposits in HSBC Malaysia Premier pay 3.2 no tax, I'll leave them in there for quite a while Ringgit is back down to 9 baht

[ExPratt]

Anyone ever do the Litigation funds about 7 years ago , It was about investing in funding Solicitors doing no win no fee cases. if the case you are investing in wins you got a bonus on your original 10% interest. In 2 years it made 40 %.on 10K I pulled out because it just seemed too good to be true plus their advertising was putting me off. I Think , and I dont want to upset anyone who was involved in it, a tad pear shaped so I was told

[JAS21]

I think that it went more like 'tits up'. Was quite a few months ago now and was in the news, but I can't remember the name of the company. It was 'hocked' around Thailand quite a bit by what I heard. I actually know someone who invested, got his first years 12.5% and invested more. I thought even then that he was probably getting some of his own money back... but he wouldn't have listened if I had suggested that. Another guy I know invested in some scheme to do with advertising on the internet, again he got money back initially but recently admitted that he ended up 5KGBP down. He tried to get me interested on several occasions.

My son is a Risk Manager with a fairly large UK investment company and he just said 'Litigation' DON'T even think about it ... can be good rewards but far too risky, I even passed that message on. The second 'investment' I couldn't even fully understand how it worked..

Anyway I fail to understand if someone 'knows' of a great investment why don't they keep quite and put all their money in it. , if they are telling 'everyone' it just sounds iffee. Anyway when you are retired and have a reasonable income why risk your capital ... your investments should be low risk ... have a punt if you want with a small percentage but don't be stupid.

[ExPratt]

I think that it went more like 'tits up'. Was quite a few months ago now and was in the news, but I can't remember the name of the company. It was 'hocked' around Thailand quite a bit by what I heard. I actually know someone who invested, got his first years 12.5% and invested more. I thought even then that he was probably getting some of his own money back... but he wouldn't have listened if I had suggested that. Another guy I know invested in some scheme to do with advertising on the internet, again he got money back initially but recently admitted that he ended up 5KGBP down. He tried to get me interested on several occasions.

My son is a Risk Manager with a fairly large UK investment company and he just said 'Litigation' DON'T even think about it ... can be good rewards but far too risky, I even passed that message on. The second 'investment' I couldn't even fully understand how it worked..

Anyway I fail to understand if someone 'knows' of a great investment why don't they keep quite and put all their money in it. , if they are telling 'everyone' it just sounds iffee. Anyway when you are retired and have a reasonable income why risk your capital ... your investments should be low risk ... have a punt if you want with a small percentage but don't be stupid.

It was called Argentum to start with and then I think Buttonwood........apparently

I didn't like they way the stakes were going up and the odds were coming down, started off 10k minimum then as you made a few quid the Next one was 20k minimum As mentioned I made 4k in 2 years and pulled out. I'd imagine some people got cained

[roobaa01]

gdaya

from laos to malaysia all hooboo talk, 555 thailand never keep more than the necessary balance needed. new zealand pays good rates, democratic country, deposits insured, english well known, www.anz.co.nz for as little as 5000 kiwi dollars 4.75 % save.

wbr

roobaa01

[AyG]

Anyway when you are retired and have a reasonable income why risk your capital ... your investments should be low risk ... have a punt if you want with a small percentage but don't be stupid.

I think there's quite a lot wrong with this statement.

(1) Low risk investments will not provide an increase in capital/income to match inflation. The value will be eroded over time. Since pensioners are living a lot longer now than they did in the past it's important to invest to beat inflation. That means taking on more risk.

(2) It's not the risk of the individual investments that is important. What actually matters is the total risk for the entire portfolio. Through diversification it's possible to decrease risk; the total risk is not the sum of the individual parts. So, one shouldn't only consider low risk investments; there can be a place for higher risk investments.

(3) In retirement one's income is probably not in THB, so there's exchange rate risk. A reasonable income now may not be so reasonable if the exchange rate shifts dramatically.

(4) To avoid exchange rate risk, all one's low risk investments should be in THB. That's certainly not something I'd feel comfortable with.

(5) Even a brief period of hyperinflation can trash the purchasing power of one's reasonable income in a matter of weeks. Thailand is not sufficiently stable that one can rule this out.

Retirement can now easily be 30 years or more. Over that period a lot can change, and there's the erosive effective of inflation. One can't reasonably simply rely upon low risk investments to protect you; your investments need to be managed to generate increasing capital and income.

[AyG]

new zealand pays good rates, democratic country, deposits insured, english well known, www.anz.co.nz for as little as 5000 kiwi dollars 4.75 % save.

Oh, the irony! Less than 12 hours after the posting the NZ central bank cut interest rates and the NZ dollar tanked. Anyone who took your advice would be sitting on a loss. It just goes to prove that currency risk makes deposits overseas unsuitable if you're looking for a steady income in Thai baht.

[roobaa01]

@Agy

not correct nzd fluctuates minimally against thai baht always , today 23.87, thus but 200.000 nzd at 4.75 % over 5 years , monthly payout

is about nzd 9500 annually or 792 monthly = thb 18928 monthly, what do i get in thailand 1.5 % thats a paltry 71550 annually or thb 5962, based on

4.77 mil baht. eventually the 71000 thb is taxable, new zealand not.

also the exchange rate will go up and down over 5 yrs. i d rather stay save in nzd $, whereas when i invested i obtained 5.75 % , thats nzd 11500

annually or nzd 958 monthly or 22875 thb for which someone has to work long hours in thailand.

wbr

roobaa1

[AyG]

@Agy

not correct nzd fluctuates minimally against thai baht always

Really? Have a look at this chart and tell me if that looks like fluctuating minimally.

I'm pretty sure it's not me who's "not correct".

[roobaa01]

@AyG

and what, it displays to me that i changed at a rate of 24.8 several years ago with good interest rate results over that period tax free as well,

now from yesterday i recall 24.96 as rate today 23.87 . hence what i would make up over the next 5 yrs , upon maturity i go short

if i would need to change. im sure the kiwi will trade in a range between 22 to 26 over the next 5 yrs earing relaxed my high fixed returns.

wbr

roobaa01

[jpinx]

@AyG

and what, it displays to me that i changed at a rate of 24.8 several years ago with good interest rate results over that period tax free as well,

now from yesterday i recall 24.96 as rate today 23.87 . hence what i would make up over the next 5 yrs , upon maturity i go short

if i would need to change. im sure the kiwi will trade in a range between 22 to 26 over the next 5 yrs earing relaxed my high fixed returns.

wbr

roobaa01

BNZ 5 year term deposit rate 1 March 2011 was 6.5% and FX rate was 22.84 -- Today FX 23.66

Anyone can do the maths -- but nobody would have predicted this 5 years ago

Now 5 year rates are down to 4.25% or so, but still good if you have no setting up costs (travel to open the accounts. etc).

[MadMac]

I'm just back from Islamic Bank as my 12 months for 3% just matured. Their new offer is 2.45% for 12 months or 2.55% for 14 monthts. Kept it there for the latter, others are worse and who knows how much further ist goes into thin air.

CIMB has 2.2% with a minimum of 500kTHB for 6 months.

As often pointed out in the past, non-standard period TDs (as opposed to the 1m,3m,6m,12m standards) often pay more attractive interest rates than usual.

eg The Islamic Bank recently had a 14m offer for 2.9%, even after the second rate cut ...

[Oorinara]

Why dont you look at a bank in Laos? 6% per year on USD

Currency risk, given that your deposit has to be converted into kip;

country risk/economic, Laos is a very poor communist country;

deposit protection, does not exist;

institution risk, Laos banks are not famed for their stability;

non-resident taxes on income and at repatriation, unknown;

and so on.

We've been there many times in the past on such deals in Laos equivalent countries, the answer is rarely if ever good.

Lao banks offer 6-8% interest p.a. for time deposit of 1-5 years, in USD or THB (even higher in Kip).

- Forex risk: none, if in USD or THB (depending on one's original currency and usage thereafter)

- Country risk: No sovereign rating. Highest country risk as same with North Korea and Myanmar, per OECD list.

- Deposit protection: up to Kip 15 million (around THB 63k)

- Institutional risk: Parastatal BCEL is the only bank listed on Lao stock exchange, Besides two more state owned commercial banks. Some local banks have negative capital, are poorly managed, unprofessionally audited and/or loosely regulated. On the other hand, there are reputable players too such as ANZ, Maybank, Thai commercial banks and Cambodia's largest Acleda.

- Tax: None for resident and nonresident (so far!)

- Repatriation: Unrestricted if in foreign currency. Deregulated several years ago. Converting Kip to foreign currency, however, is capped to certain amount per transaction/time.

Thai visa seems not have Lao forum and hence Lao banking and financial thread, so let me post here meanwhile.

[scooterboy]

^Nice info, Oorinara - could be a future investment area for some.

A couple of things I'd like to know before being interested in any way.

Does opening a Lao account require one (or more) physical appearances at a chosen bank? In other words - is it possible to open an account from another country, say from Thailand?

What lower and upper deposit limits in USD/THB are there (if any)?

Interest is paid - yearly, or on maturity? And can this interest automatically be returned to an account in the orginal sending country (i.e, Thailand)?

Lastly, oughtn't this particular topic be put in a new thread or pinned topic - so as not to clog up the Thai banking interest rate thread?

Cheers

[JoePai]

^Nice info, Oorinara - could be a future investment area for some.

A couple of things I'd like to know before being interested in any way.

Does opening a Lao account require one (or more) physical appearances at a chosen bank? In other words - is it possible to open an account from another country, say from Thailand?

What lower and upper deposit limits in USD/THB are there (if any)?

Interest is paid - yearly, or on maturity? And can this interest automatically be returned to an account in the orginal sending country (i.e, Thailand)?

Lastly, oughtn't this particular topic be put in a new thread or pinned topic - so as not to clog up the Thai banking interest rate thread?

Cheers

http://www.ldblao.la/ldbeng/dep_fixed.php

[Oorinara]

List of banks in Lao

http://www.bol.gov.la/english/other_banks.html

- Account opening: physical appearance inevitable. Documentary requirement varies, depending on bank. Some ok with just passport. Some require visa, work permit sort, employment contract, and/or Lao endorser.

- Amount limit: minimum USD 10-20 for saving, USD 100 for fixed term, or more or less. Haven't heard about max.

- Interest payment: can choose either monthly or upon maturity (the latter giving slightly higher rate). Interest rates for 2,3,5,+ years tend to be simple one but compound. So need to carefully calculate what's the best rate in annual equivalent base when choosing upon maturity.

- ATM: can withdraw from USD or THB savings account but in Kip in Lao (at bank's forex rate). Some bears Visa Electron, Maestron or UnionPay, so can withdraw outside Lao. Bangkok Bank allows Phongsavanh bank ATM holders to withdraw in Thailand. Unsure about fees and forex, if any, especially when withdrawing in THB in Thailand from THB account with Lao bank.

http://www.bol.gov.la/english/other_banks.html

- Internet banking: BCEL and a few banks offer it but for fee. Uncommon yet, simply put.

- Auto transfer of monthly interest to bank account in Thailand: recurrent remittance for a fixed period can be arranged over the counter in Lao, some counter officers say. I haven't tried though.

Counter officers in banks headquarters in Vientiane generally speak better English than in Bangkok. They speak Thai either.

[topt]

^Nice info, Oorinara - could be a future investment area for some.

A couple of things I'd like to know before being interested in any way.

Does opening a Lao account require one (or more) physical appearances at a chosen bank? In other words - is it possible to open an account from another country, say from Thailand?

What lower and upper deposit limits in USD/THB are there (if any)?

Interest is paid - yearly, or on maturity? And can this interest automatically be returned to an account in the orginal sending country (i.e, Thailand)?

Lastly, oughtn't this particular topic be put in a new thread or pinned topic - so as not to clog up the Thai banking interest rate thread?

Cheers

http://www.ldblao.la/ldbeng/dep_fixed.php

Thanks for the link. Interesting that most of it is in English apart from the interest rates and fees - even the forms are dual language. Unfortunately it looks like you have to be there in person to open. Also I can now understand the stories of people getting caught carrying huge amounts of cash over the border when under Fund Transfer by Swift it states -

Terms and Conditions Fund Transfers.

• Inward Electronic Fund Transfer (EFT) by SWIFT to a bank account in a foeign currency transferred amount in USD, minimum is USD3 and maximum is USD800;

Or have they left some zeros off........

Unless I have misread it? Pity as may have been interesting.

[Oorinara]

International fund transfer limit: haven't heard and have never been restricted, both inward and outward, even in case of more than, say, USD 100k (unless converting Kip into foreign currency). Am not using LDB though.

[MadMac]

If you do TT (telegraphic transfer), not sure what you mean by "SWIFT transfer", the only limit is the one the bank sets for a one time transaction. Can be 50kUS$...100kUS$/day. That you should max out to save on fees.

[topt]

If you do TT (telegraphic transfer), not sure what you mean by "SWIFT transfer", the only limit is the one the bank sets for a one time transaction. Can be 50kUS$...100kUS$/day. That you should max out to save on fees.

same same

[JoePai]

GSB are offering a step-up for 10 months - end of 10 months total is 2,559% which is 2.175% after tax.

[Boycie]

Islam Bank, 12 month fixed deposit offering 2.45%

[R123]

Soon I want to bring in from overseas the equivalent of 800,000 baht for about 7 month to place on deposit in anticipation of using the money for my retirement visa requirement which renews in February.

I currently bank with Bangkok Bank (in Pattaya) and may use them as usual but can anyone recommend another bank (acceptable to immigration) giving me a better rate of interest?

Many thanks any suggestions!

[Boycie]

^R123, How much is Bangkok Bank giving you at the moment?

[R123]

^R123, How much is Bangkok Bank giving you at the moment?

according to the Bangkok Bank web site (Thai version) 1.875% for 7 months.

[JAS21]

Soon I want to bring in from overseas the equivalent of 800,000 baht for about 7 month to place on deposit in anticipation of using the money for my retirement visa requirement which renews in February.

I currently bank with Bangkok Bank (in Pattaya) and may use them as usual but can anyone recommend another bank (acceptable to immigration) giving me a better rate of interest?

Many thanks any suggestions!

Be careful if you use CIMB fixed accounts ... they can't update the book so they told me and immigration told me that they wouldn't accept a paper print out... lucky that I had money in BB. Of course a CIMB instant access a/c is ok ... pays 1.8% over 1M and 1.5% on lower amounts at the moment.

[AyG]

Krung Sri has a few accounts that may be of interest:

Mee Tae Dai isn't a fixed deposit account, so your money is available any time without loss of interest. For 800,000 Baht it pays 1.85%. For me it's convenient because there's no nonsense of dealing with maturity and rolling over into 3 month fixed deposits. Rates are consistently good.

10 month fixed deposit pays 1.90%.

8 month step up deposit pays an average rate of 2.10%.