Bank Savings Interest Rates

[chiang mai]

If in doubt about paying taxes and the recovery of taxes on Thai bank accounts, read post number 9 in thread below for chapter and verse of how to claim back said tax:

[John 1]

You always pay 15% tax on interest. As CM said, you can reclaim it, but the hassle is probably only worth for some sizable amount.

There's no hassle involved at the CM tax office, it's all very civilised, once you've got your tax ID you can do future refunds online and, they even serve you with tea and coffe whilst you're filling out the forms (in a generally empty office), nothing could be more slick.

Also, you don't "always" pay tax, only paid on fixed term depsoits - is also paid on instant access accounts if interest is over 20K.

Tax is paid on all accounts saving or fixed

Tax is not paid on farang savings acounts where the interest is under THB 20k per year!

I don't know where you get your info from but for sure Bkk bank take's tax from interest on any amount. I just looked at one saving account interest earned 10,977bt tax 1,646bt.

[chiang mai]

I don't know where you get your info from but for sure Bkk bank take's tax from interest on any amount. I just looked at one saving account interest earned 10,977bt tax 1,646bt.

Perhaps you have a "non-resident account" or perhaps you keep an ammount in that account that makes BBK think you will easily exceed the threshold? Regardless, I have a series of Thai bank accounts where funds are moved between accounts on a regular basis and none of them deduct tax on interest unless the threshold is exceeded, perhaps you should visit your bank (and others) and ask the question why.

Also, did you read the tax threshold limits in the link I posted? I wonder if perhaps you have a work permit based visa because if so, chances are your taxation will be similar to a Thai national.

[trajan]

LH Bank and Kiatnakin Bank (2 smaller local banks) are offering an 18-month fixed deposit at 4% per annum (interest paid out monthly)....

is that the best local rate for straight forward fixed deposits??

that seems to currently beat the big local banks (BBL, KTB, KBank, SCB, BAY, SCB and Thanachart) and the foreign controlled local banks (CIMB, Standard Chartered, UOB, ICBC and Mega) but I might be wrong....

havent bothered to check Tisco or Thai Credit Bank

[chiang mai]

Well spotted, that's the first 4% deal I've seen, I'm not too sure about L & H Bank (Land and House) though, I suppose if the depsoit protection scheme holds up then it's OK.

[GreenSnapper]

I don't know where you get your info from but for sure Bkk bank take's tax from interest on any amount. I just looked at one saving account interest earned 10,977bt tax 1,646bt.

Perhaps you have a "non-resident account" or perhaps you keep an ammount in that account that makes BBK think you will easily exceed the threshold? Regardless, I have a series of Thai bank accounts where funds are moved between accounts on a regular basis and none of them deduct tax on interest unless the threshold is exceeded, perhaps you should visit your bank (and others) and ask the question why.

Also, did you read the tax threshold limits in the link I posted? I wonder if perhaps you have a work permit based visa because if so, chances are your taxation will be similar to a Thai national.

I also pay tax on saving account, any amount of interest. K-Bank, O-Visa/retirement.

[chiang mai]

I don't know where you get your info from but for sure Bkk bank take's tax from interest on any amount. I just looked at one saving account interest earned 10,977bt tax 1,646bt.

Perhaps you have a "non-resident account" or perhaps you keep an ammount in that account that makes BBK think you will easily exceed the threshold? Regardless, I have a series of Thai bank accounts where funds are moved between accounts on a regular basis and none of them deduct tax on interest unless the threshold is exceeded, perhaps you should visit your bank (and others) and ask the question why.

Also, did you read the tax threshold limits in the link I posted? I wonder if perhaps you have a work permit based visa because if so, chances are your taxation will be similar to a Thai national.

I also pay tax on saving account, any amount of interest. K-Bank, O-Visa/retirement.

All I can say is you guys need to figure out why and if possible change it, my best guess is that you fall into one of the categories I previously mentioned, the previous poster has gone quiet since I described that list so I wonder, do you fall into one of those categories?

In my case I've held regular savings accounts with a range of Thai banks, BB, Kasikorn, Thanachart and others, each pay me interest on different frequencies based on the bank and none deduct tax at source. Note: I'm on a retirement visa (no WP) and I never let my interest amount to more than 20k per year from any one regular savings account.

[chiang mai]

Now, if we can get back on track with the subject of interest rates:

It seems to me that the Thai bank interest rates we see today are probably about as good as they're going to get for quite some time to come (I think) yet duration for most Thai banking products currently is typically only 5 months or 11 months at best. It would therefore be helpful for many I suspect if we can report and pool information about any longer term products on offer?

[cheeryble]

Don't be pathetic.

I beg you pardon?

This was a calculated rip off which was later exposed in the Sunday papers and cost me 5000 sterling.

It warned me and others to not trust banks and assume they're honest but to keep one's eye on the ball, which message I'm passing on.

I may add years later I complained about cavalier misinformation which caused a similar shortfall in my UBS account. I complained, and the compliance officer arranged a full settlement. My Natwest experience is the sort of thing normal posters share to learn from others good or bad luck.

[meand]

BAY has an instant access account that pays 2.9% where the interest is calculated/accrued daily and posted to the account monthly, limit two withdrawls per month, looks like a hard to beat winner to me.

That does sound pretty decent as far as comparable here go.

That allowing 2 withdrawals is a nice touch. Also allows more for 50THB each

Compared to others that keep all interest if broken if less than 3 months & give simple savings rate for over 3 months but short of the 4 required.

Agreed when compared to others (here in Thailand ) hard to beat

Thanks

http://www.krungsri....il.aspx?did=572

I'm planning on going in and opening this 2.9% account tomorrow. I just wanted to double check -- i'm obviously not a savvy banker -- that they pay the interest daily (seems too good to be true in BKK)? I will have the funds in for a very short duration (maybe 2 months), so just didn't want to go through the trouble for nothing. Thanks for confirming.

[flying]

I'm planning on going in and opening this 2.9% account tomorrow. I just wanted to double check -- i'm obviously not a savvy banker -- that they pay the interest daily (seems too good to be true in BKK)? I will have the funds in for a very short duration (maybe 2 months), so just didn't want to go through the trouble for nothing. Thanks for confirming.

This is from their June 5th 2012 attached Statement.... Page 7 Part 10...I added the bold on part 10.5

Also having just checked my account online I can confirm that I opened one of these accounts on 6/12 & see that on 6/28 my account was credited interest equal to

2.9% PA calculated on a daily breakdown & the amount deposited to my account was correct.

10 Savings Mee Tae Dai Deposit Account: Deposit terms

10.1 Eligible depositors are individual customers who open an account only under their name (joint accounts,

Account “for” or “by” are not permitted).

10.2 The minimum for the initial deposit is THB 500.

10.3 For depositing with a cheque, the deposit shall be considered as complete only after the cheque has been

cleared.

10.4 The interest rate and fees on this deposit is as per the Bank’s announcement.

10.5 The Bank shall calculate interests on a daily basis based on the remaining balance and shall deposit such

interests after deduction of withholding taxes to such account on the day before last working day of each

month.

10.6 The depositors shall be able to make the Withdrawal Transaction 2 times of each month with free of charge,

after that, the Withdrawal Transaction fee will be charged in the amount of 50 Baht per transaction given

that such fee will be deducted from the account in the next day.

10.7 Withdrawal Transaction means any withdrawal or fund transfer via all of the Bank’s channels which also

include automatic account deduction and the closing of account.

10.8 In the case where the remaining balance is less than the Withdrawal Transaction fee, the depositors shall

not be allowed to make any Withdrawal Transaction.

10.9 Depositors shall be able to close their account at the branch where the account has opened.

10.10 The calculation of the interest tax is as per the regulations / conditions of the Revenue Department.

10.11 The Bank reserves the right to change conditions or service procedures without any prior notice to

depositors.

Interest_728Deposit-01-06-2012.pdf

[chiang mai]

I'm planning on going in and opening this 2.9% account tomorrow. I just wanted to double check -- i'm obviously not a savvy banker -- that they pay the interest daily (seems too good to be true in BKK)? I will have the funds in for a very short duration (maybe 2 months), so just didn't want to go through the trouble for nothing. Thanks for confirming.

This is from their June 5th 2012 attached Statement.... Page 7 Part 10...I added the bold on part 10.5

Also having just checked my account online I can confirm that I opened one of these accounts on 6/12 & see that on 6/28 my account was credited interest equal to

2.9% PA calculated on a daily breakdown & the amount deposited to my account was correct.

10 Savings Mee Tae Dai Deposit Account: Deposit terms

10.1 Eligible depositors are individual customers who open an account only under their name (joint accounts,

Account “for” or “by” are not permitted).

10.2 The minimum for the initial deposit is THB 500.

10.3 For depositing with a cheque, the deposit shall be considered as complete only after the cheque has been

cleared.

10.4 The interest rate and fees on this deposit is as per the Bank’s announcement.

10.5 The Bank shall calculate interests on a daily basis based on the remaining balance and shall deposit such

interests after deduction of withholding taxes to such account on the day before last working day of each

month.

10.6 The depositors shall be able to make the Withdrawal Transaction 2 times of each month with free of charge,

after that, the Withdrawal Transaction fee will be charged in the amount of 50 Baht per transaction given

that such fee will be deducted from the account in the next day.

10.7 Withdrawal Transaction means any withdrawal or fund transfer via all of the Bank’s channels which also

include automatic account deduction and the closing of account.

10.8 In the case where the remaining balance is less than the Withdrawal Transaction fee, the depositors shall

not be allowed to make any Withdrawal Transaction.

10.9 Depositors shall be able to close their account at the branch where the account has opened.

10.10 The calculation of the interest tax is as per the regulations / conditions of the Revenue Department.

10.11 The Bank reserves the right to change conditions or service procedures without any prior notice to

depositors.

Interest_728Deposit-01-06-2012.pdf

One of the key issues here which is somewhat separate from your reply is the issue of whether or not tax is deducted at source, according to your extract of the rules it appears it could be. But I guess that could simply be imprecise verbage, can I ask, was tax withheld from your interest payment, I personally maintain that interest is not deducted where the amount is under 20k per year?

[John 1]

I'm planning on going in and opening this 2.9% account tomorrow. I just wanted to double check -- i'm obviously not a savvy banker -- that they pay the interest daily (seems too good to be true in BKK)? I will have the funds in for a very short duration (maybe 2 months), so just didn't want to go through the trouble for nothing. Thanks for confirming.

This is from their June 5th 2012 attached Statement.... Page 7 Part 10...I added the bold on part 10.5

Also having just checked my account online I can confirm that I opened one of these accounts on 6/12 & see that on 6/28 my account was credited interest equal to

2.9% PA calculated on a daily breakdown & the amount deposited to my account was correct.

10 Savings Mee Tae Dai Deposit Account: Deposit terms

10.1 Eligible depositors are individual customers who open an account only under their name (joint accounts,

Account “for” or “by” are not permitted).

10.2 The minimum for the initial deposit is THB 500.

10.3 For depositing with a cheque, the deposit shall be considered as complete only after the cheque has been

cleared.

10.4 The interest rate and fees on this deposit is as per the Bank’s announcement.

10.5 The Bank shall calculate interests on a daily basis based on the remaining balance and shall deposit such

interests after deduction of withholding taxes to such account on the day before last working day of each

month.

10.6 The depositors shall be able to make the Withdrawal Transaction 2 times of each month with free of charge,

after that, the Withdrawal Transaction fee will be charged in the amount of 50 Baht per transaction given

that such fee will be deducted from the account in the next day.

10.7 Withdrawal Transaction means any withdrawal or fund transfer via all of the Bank’s channels which also

include automatic account deduction and the closing of account.

10.8 In the case where the remaining balance is less than the Withdrawal Transaction fee, the depositors shall

not be allowed to make any Withdrawal Transaction.

10.9 Depositors shall be able to close their account at the branch where the account has opened.

10.10 The calculation of the interest tax is as per the regulations / conditions of the Revenue Department.

10.11 The Bank reserves the right to change conditions or service procedures without any prior notice to

depositors.

Interest_728Deposit-01-06-2012.pdf

One of the key issues here which is somewhat separate from your reply is the issue of whether or not tax is deducted at source, according to your extract of the rules it appears it could be. But I guess that could simply be imprecise verbage, can I ask, was tax withheld from your interest payment, I personally maintain that interest is not deducted where the amount is under 20k per year?

Getting back to this tax being withheld, my other account's are also same and my Thai wife same. So do you have a document that's says not till 20,000bt interest or is it just your experience.

[chiang mai]

Getting back to this tax being withheld, my other account's are also same and my Thai wife same. So do you have a document that's says not till 20,000bt interest or is it just your experience.

It's been my experience over the past nine years here that tax is not payable unless you reach the 20k mark within any calendar year, in looking at my Kasikorn savings account where I recieved THB 1,680 interest in June, it was paid without tax being withheld. Ditto my Bangkok Bank account is paid similarly and I fully expect when poster "Flying" above reports back he will tell us that he did not have tax deducted also.

So, there are anomallies of which you are one and we need to figure out why, is it a non-resident account, do you have a WP, do you recieve interest in excess of 20k per year, is your wife a signer on the account and does she have other taxable income, etc etc? Any inputs you can provide will perhaps help clear this issue up for others.

[Darrel]

.... I personally maintain that interest is not deducted where the amount is under 20k per year?

It seems to depend on the bank. Most pay the first 20K tax-free, but I'm not sure that this is obligatory.

[John 1]

Getting back to this tax being withheld, my other account's are also same and my Thai wife same. So do you have a document that's says not till 20,000bt interest or is it just your experience.

It's been my experience over the past nine years here that tax is not payable unless you reach the 20k mark within any calendar year, in looking at my Kasikorn savings account where I recieved THB 1,680 interest in June, it was paid without tax being withheld. Ditto my Bangkok Bank account is paid similarly and I fully expect when poster "Flying" above reports back he will tell us that he did not have tax deducted also.

So, there are anomallies of which you are one and we need to figure out why, is it a non-resident account, do you have a WP, do you recieve interest in excess of 20k per year, is your wife a signer on the account and does she have other taxable income, etc etc? Any inputs you can provide will perhaps help clear this issue up for others.

I'm not worried about paying the tax or finding out why I think it should be paid same as in Australia they have withholding tax it's income so should be taxed. As for the account's in Thai 1 was opened 20 years ago at SCB the others over last 12 years all without work permit. As for why would 20K per year interest would effect another account I don't think so. Do you have a link from a Bank saying no tax is withheld on interest on account's earning less than 20k per . If so that will be proof of the pudding.

[chiang mai]

Getting back to this tax being withheld, my other account's are also same and my Thai wife same. So do you have a document that's says not till 20,000bt interest or is it just your experience.

It's been my experience over the past nine years here that tax is not payable unless you reach the 20k mark within any calendar year, in looking at my Kasikorn savings account where I recieved THB 1,680 interest in June, it was paid without tax being withheld. Ditto my Bangkok Bank account is paid similarly and I fully expect when poster "Flying" above reports back he will tell us that he did not have tax deducted also.

So, there are anomallies of which you are one and we need to figure out why, is it a non-resident account, do you have a WP, do you recieve interest in excess of 20k per year, is your wife a signer on the account and does she have other taxable income, etc etc? Any inputs you can provide will perhaps help clear this issue up for others.

I'm not worried about paying the tax or finding out why I think it should be paid same as in Australia they have withholding tax it's income so should be taxed. As for the account's in Thai 1 was opened 20 years ago at SCB the others over last 12 years all without work permit. As for why would 20K per year interest would effect another account I don't think so. Do you have a link from a Bank saying no tax is withheld on interest on account's earning less than 20k per . If so that will be proof of the pudding.

No I don't have a link, it's only in the past couple of days since this thread has been open that this has become a questionable issue by anyone since I've been reading this forum. What I would suggest you do is the next time you are in your bank is to ask the question, why am I paying tax and see what they say.

I used to have a table that showed tax bands in Thailand where the lowest band was tax exempt, it's that tax free band where the non-taxable interest income comes from. Since only two posters have queried this issue thus far I'm inclined to believe that both are probably existing Thai tax payers or similar hence there is no exemption.

[flying]

One of the key issues here which is somewhat separate from your reply is the issue of whether or not tax is deducted at source, according to your extract of the rules it appears it could be. But I guess that could simply be imprecise verbage, can I ask, was tax withheld from your interest payment, I personally maintain that interest is not deducted where the amount is under 20k per year?

Hi CM

No interest was not withheld....Same as my other accounts at Bangkok Bank & SCB

So that makes three banks Ayudhya, BKB & SCB

I have had SCB & BKB for 5 years with no tax withheld.

But.........I will also say I did not get over 20k interest in those accounts at anytime in the last five years.4I was not living full time

here during those years so never kept more than 10k USD here

Now that I have moved here full time I will easily exceed that 20k THB interest per year so I will keep an eye on it & see

if at that time they do ( I expect they will ) deduct interest

[flying]

On this tax issue....Bangkok Bank does say this on page 8 under fixed rates in the attached brochure....

Bold & underline by me...

Fixed-term deposits

Make your money work for you with a Bangkok Bank fixed-deposit account. All you need is a minimum

deposit of Bt 2,000 to receive competitive rates for terms of 3 months or up to three years. Deposits to

fixed accounts may be made via Cash Deposit Machine, Internet Banking, ATM and Phone Banking. Tax is

automatically deducted from interest paid to customers.

plugin-bankingGuide_june-1.pdf

[chiang mai]

On this tax issue....Bangkok Bank does say this on page 8 under fixed rates in the attached brochure....

Bold & underline by me...

Fixed-term deposits

Make your money work for you with a Bangkok Bank fixed-deposit account. All you need is a minimum

deposit of Bt 2,000 to receive competitive rates for terms of 3 months or up to three years. Deposits to

fixed accounts may be made via Cash Deposit Machine, Internet Banking, ATM and Phone Banking. Tax is

automatically deducted from interest paid to customers.

plugin-bankingGuide_june-1.pdf

Thanks for the above. Yes I would expect tax to be deducted from fixed rate/term deposit accounts and that is normal, but that tax can be claimed back from the tax office. What is more of a slight mystery at this stage is two posters who claim to have tax deducted from regular savings accounts although there is no doubt a logical and simple answer.

[flying]

Thanks for the above. Yes I would expect tax to be deducted from fixed rate/term deposit accounts and that is normal, but that tax can be claimed back from the tax office. What is more of a slight mystery at this stage is two posters who claim to have tax deducted from regular savings accounts although there is no doubt a logical and simple answer.

Yes agreed & sometime today I will check my BKB fixed account as this has been the 1st month with that 2.62% 4 month account.

For some reason their site is slow right now but I will check later & report back.

As for regular savings like Ayudhya & SCB as well as my BKB reg savings....

I have never has tax deducted & recently had a few million in the regular BKB account.

I see that they gave me the interest but no tax & the interest was even at 0.75% reg savings rate a couple thousand baht for a month...no tax deducted

John1 I am curious is your tax taken out monthly or once a year?

Thanks

[chiang mai]

The following statement from Bangkok Banks representative to the forum confirming that the first 20k baht is free of tax::

"The explanation I received from Bangkok Bank was that the same rules applied to residents and non residents. If the funds are held in a Savings account there is no withholding tax deduction on the first 20,000 baht earned per annun. Thereafter a rate of 15% deduction on interest earned is applied.

If the funds are held in a Fixed deposit account, such as the 2.25% for 15 months previopusly mentioned, the deuction is applied to all interest earned".

Other posters confirming the same, all found here:

John1, you need to talk to your bank perhaps and find out why, as does the prior poster.

[fletchsmile]

For the THB 20k threshold on savings deposits the ref is below in section 3.2

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

It should be in aggregate. Many people, inlcuding bank clerks mis-interpet or don't fully understand this. You often get bank clerks telling you to open several accounts to be below the limit (per account). In my view this interpretation is incorrect

[meand]

I opened my 2.9% account today..... or, I had my wife open it. I'm working all day, so I couldn't be with her. The banker mentioned something about opening 2 accounts with the amount we wanted to deposit, supposedly for tax reasons. My wife just ended up depositing a fraction of what we had planned today, but I take it this is all kosher.... to open 2 accounts (I see from fletchsmile's post this perhaps should not be necessary, my wife said she pretty much was insisting). I assume so and we'll probably try to put the rest in tomorrow. What is the preferred way to move the money around, cashiers checks? Thanks to all for the information.

[chiang mai]

I opened my 2.9% account today..... or, I had my wife open it. I'm working all day, so I couldn't be with her. The banker mentioned something about opening 2 accounts with the amount we wanted to deposit, supposedly for tax reasons. My wife just ended up depositing a fraction of what we had planned today, but I take it this is all kosher.... to open 2 accounts (I see from fletchsmile's post this perhaps should not be necessary, my wife said she pretty much was insisting). I assume so and we'll probably try to put the rest in tomorrow. What is the preferred way to move the money around, cashiers checks? Thanks to all for the information.

I think the tax law is pretty specific through the use of the term "aggregate" but how you handle your affairs is up to you.

As for moving money around, bankers drafts, ATM or electronic transfers all work well.

[Darrel]

The banker mentioned something about opening 2 accounts with the amount we wanted to deposit, supposedly for tax reasons.

I would not be surprised if the bank employee got a bonus related to the number of accounts opened.

[chiang mai]

The banker mentioned something about opening 2 accounts with the amount we wanted to deposit, supposedly for tax reasons.

I would not be surprised if the bank employee got a bonus related to the number of accounts opened.

Yes it could be although it's more probable that the staff don't understand the aggregation concept, the same thing has been proposed to me many times at a number of banks, open multiple accounts and avoid paying tax.

[MrMuddle]

There was a post earlier about reclaiming tax for no-tax payers, any idea how far back i can go in reclaiming ? I've paid tax on savings for 4 or 5 years. Will I need any proof that i'm not working or paying tax?

[chiang mai]

There was a post earlier about reclaiming tax for no-tax payers, any idea how far back i can go in reclaiming ? I've paid tax on savings for 4 or 5 years. Will I need any proof that i'm not working or paying tax?

Assuming you are talking about reclaiming tax paid on savings in Thailand over the past four or five years ? , the answer was in the post that you read, you can go back and reclaim for the past four years as I recall. But you can only reclaim the tax paid on fixed rate/term deposits, you cannot reclaim the tax paid on ordinary savings accounts, do you have ordinary savings accounts?

[chiang mai]

I'm begining to wonder if having a pinned thread soley to display bank interest rates in Thailand, albeit this is not a pinned thread, was a good idea, this thread thus far seems to be spending all its time managing posters misunderstanding of taxation on bank accounts and everything allied to it!

I suspect the answer here is that without Moderator management, a thread such as was intended here will not be sucessful as long as it is allowed to raise any question that is bank related.

I think on the basis of the above I'm going to withdraw my support of this thread and leave it to others to see perhaps how it progresses, alternatively it should be allowed to just fade away.