Bank Savings Interest Rates

[fletchsmile]

You really think the Deposit Protection Scheme would pay out in the event of a banking melt-down?

CIMB is one of the biggest Banks in Asia, and Islamic Bank is a Thai government institution. So I'd rather bet on them than any Citibank of the world.

Have you ever looked at the financials of Islamic Bank?

Level of NPLs. Capital Adequacy Ratios etc

Wouldn't touch it with a barge pole, when it comes to depositing money. You really are relying on the assumption the government will continue to support them.

[chiang mai]

Yup indeed, when a bank offers a rate of savings interest that is substantially more than all the other banks, there's usually a reason and it usually isn't good. FWIW CIMB reduced their rate about two weeks ago, back down to a competitive 1.85%.

[jpinx]

There is no such thing as total security of investments, but it pays to take a cross-section of credit ratings and other reviews.

[MadMac]

Have you ever looked at the financials of Islamic Bank?

It's a Thai government bank. Simple.

[TallGuyJohninBKK]

Not so simple, AFAIK.

The Thai commercial banks are covered by the DPA law that spells out a legal procedure and timeline for depositors to get their funds restored, in the event a bank fails, up to the specified limits in the law.

AFAIK, the fully government owned banks (Islamic, Govt. Savings, Govt. Housing, BAAC) aren't covered by the DPA law and its protections. So, the depositors there would be left to however the government in the event of a bank run or failure would handle things. Might be OK... might not, kind of hard to know or predict.

http://www.dpa.or.th/ewt_news.php?nid=34&filename=index___EN

BTW, remember that the limit on DPA coverage is still due to drop dramatically to 1 million baht per depositor, per bank, starting Aug. 11, 2016. That's down from the current limit of 25 million per depositor, per bank.

[jpinx]

Not so simple, AFAIK.

The Thai commercial banks are covered by the DPA law that spells out a legal procedure and timeline for depositors to get their funds restored, in the event a bank fails, up to the specified limits in the law.

AFAIK, the fully government owned banks (Islamic, Govt. Savings, Govt. Housing, BAAC) aren't covered by the DPA law and its protections. So, the depositors there would be left to however the government in the event of a bank run or failure would handle things. Might be OK... might not, kind of hard to know or predict.

http://www.dpa.or.th/ewt_news.php?nid=34&filename=index___EN

BTW, remember that the limit on DPA coverage is still due to drop dramatically to 1 million baht per depositor, per bank, starting Aug. 11, 2016. That's down from the current limit of 25 million per depositor, per bank.

That's a joke. Guaranteeing a piddly little amount like a million Baht makes a mockery of the concept of "deposit protection". More worryingly - it also indicates that the central bank has zero confidence.

[TallGuyJohninBKK]

There's been speculation that the "government" will end up stepping in before the Aug 2016 scheduled change comes and either delay implementation or make some other change.

Whether anything like that's going to actually happen remains to be seen. Right now, 1 million baht equals about $28,500+ U.S.

I guess a related question would be, if the change does take effect to 1 million for the Thai DPA commercial banks, what's that going to mean, if anything, for the government's treatment of accounts at the non-DPA government banks?

[jpinx]

There's been speculation that the "government" will end up stepping in before the Aug 2016 scheduled change comes and either delay implementation or make some other change.

Whether anything like that's going to actually happen remains to be seen. Right now, 1 million baht equals about $28,500+ U.S.

I guess a related question would be, if the change does take effect to 1 million for the Thai DPA commercial banks, what's that going to mean, if anything, for the government's treatment of accounts at the non-DPA government banks?

If the government is "stepping in" - who made the decision to reduce the limit? It certainly begs the question of the credit-worthiness of the government *and* the banks -- in other words, the whole country. Remember when Standard & Poor's reduced the rating of Cambodia to almost junk? So it's possible that the international confidence in Thailand will similarly be reduced.

[topt]

There's been speculation that the "government" will end up stepping in before the Aug 2016 scheduled change comes and either delay implementation or make some other change.

Whether anything like that's going to actually happen remains to be seen. Right now, 1 million baht equals about $28,500+ U.S.

I guess a related question would be, if the change does take effect to 1 million for the Thai DPA commercial banks, what's that going to mean, if anything, for the government's treatment of accounts at the non-DPA government banks?

If the government is "stepping in" - who made the decision to reduce the limit? It certainly begs the question of the credit-worthiness of the government *and* the banks -- in other words, the whole country. Remember when Standard & Poor's reduced the rating of Cambodia to almost junk? So it's possible that the international confidence in Thailand will similarly be reduced.

jpinx this has been on the cards for a long time - Ie several years at least. It was originally scheduled to reduce I think last year and they decided to delay it to this year. And by they we are of course referring to the government.

25 million currently is a very high limit compared to the UK and Europe so arguably it is too high to be practical. I wonder what the "average" Thai person has in the bank as savings...........

[jpinx]

There's been speculation that the "government" will end up stepping in before the Aug 2016 scheduled change comes and either delay implementation or make some other change.

Whether anything like that's going to actually happen remains to be seen. Right now, 1 million baht equals about $28,500+ U.S.

I guess a related question would be, if the change does take effect to 1 million for the Thai DPA commercial banks, what's that going to mean, if anything, for the government's treatment of accounts at the non-DPA government banks?

If the government is "stepping in" - who made the decision to reduce the limit? It certainly begs the question of the credit-worthiness of the government *and* the banks -- in other words, the whole country. Remember when Standard & Poor's reduced the rating of Cambodia to almost junk? So it's possible that the international confidence in Thailand will similarly be reduced.

jpinx this has been on the cards for a long time - Ie several years at least. It was originally scheduled to reduce I think last year and they decided to delay it to this year. And by they we are of course referring to the government.

25 million currently is a very high limit compared to the UK and Europe so arguably it is too high to be practical. I wonder what the "average" Thai person has in the bank as savings...........

Interesting, but as far as I can see the scheme in EU and UK banks is for £75,000 or equivalent -- that would be about 3.75 million Baht. Maybe they'll settle for a level around that.

http://www.bankofengland.co.uk/pra/pages/authorisations/fscs/bankingandsavings.aspx

[topt]

There's been speculation that the "government" will end up stepping in before the Aug 2016 scheduled change comes and either delay implementation or make some other change.

Whether anything like that's going to actually happen remains to be seen. Right now, 1 million baht equals about $28,500+ U.S.

I guess a related question would be, if the change does take effect to 1 million for the Thai DPA commercial banks, what's that going to mean, if anything, for the government's treatment of accounts at the non-DPA government banks?

If the government is "stepping in" - who made the decision to reduce the limit? It certainly begs the question of the credit-worthiness of the government *and* the banks -- in other words, the whole country. Remember when Standard & Poor's reduced the rating of Cambodia to almost junk? So it's possible that the international confidence in Thailand will similarly be reduced.

jpinx this has been on the cards for a long time - Ie several years at least. It was originally scheduled to reduce I think last year and they decided to delay it to this year. And by they we are of course referring to the government.

25 million currently is a very high limit compared to the UK and Europe so arguably it is too high to be practical. I wonder what the "average" Thai person has in the bank as savings...........

Interesting, but as far as I can see the scheme in EU and UK banks is for £75,000 or equivalent -- that would be about 3.75 million Baht. Maybe they'll settle for a level around that.

http://www.bankofengland.co.uk/pra/pages/authorisations/fscs/bankingandsavings.aspx

You never know but even that level is moaned about in the UK especially as it was recently reduced from 85k due to the fall in the value of the Euro.

Maybe you missed my last point? When they do decide I somehow doubt that the Thai government are going to be thinking about protecting the average foreigner's savings ...........

[ExpatOilWorker]

I am probably not the only one who have lost track of this thread. Is it possible somebody could post a brief summary of the best rates available at the moment?

[chiang mai]

Nobody knows and very few care, certainly not the mods.

The thread has descended into a free for all about anything and everything including government savings deposit protection plans but hey, you wanted it so live with it.

You wannna know what the best bank interest rates are, go ask the bank.

[55Jay]

Deposit rates can be found at BoT.

https://www.bot.or.th/english/statistics/_layouts/application/interest_rate/in_rate.aspx

Now and then folks still fixed deposit rates as they run across them.

[chiang mai]

Deposit rates can be found at BoT.

https://www.bot.or.th/english/statistics/_layouts/application/interest_rate/in_rate.aspx

Now and then folks still fixed deposit rates as they run across them.

The link you provided does not show specials offered by the banks, the link is effectively useless in that respect.

[55Jay]

Deposit rates can be found at BoT.

https://www.bot.or.th/english/statistics/_layouts/application/interest_rate/in_rate.aspx

Now and then folks still fixed deposit rates as they run across them.

The link you provided does not show specials offered by the banks, the link is effectively useless in that respect.

[roobaa01]

gdaya folks,

I was given Information by a friend who visited pattaya in April 2016 but I did not believe it.

does anybody know the bank's name if it exists :

deposit into the account every 3 months baht 36.000 for a term of 4 years,paying interest 5 % ?????

cheers roobaa01

[chiang mai]

Deposit rates can be found at BoT.

https://www.bot.or.th/english/statistics/_layouts/application/interest_rate/in_rate.aspx

Now and then folks still fixed deposit rates as they run across them.

The link you provided does not show specials offered by the banks, the link is effectively useless in that respect.

Here's an idea, why don't you start a thread and call it something like, Bank Interest Rates in Thailand, you could even call it BIRT for short, kinda catchy I reckon. That way all you have to do is post the same unchanged and boring BOT link every month albeit things may get just a little exciting if the MMC ever changes the base rate but apart from that, little effort will be required. It will be, really really useful and oh so informative!

[chiang mai]

gdaya folks,

I was given Information by a friend who visited pattaya in April 2016 but I did not believe it.

does anybody know the bank's name if it exists :

deposit into the account every 3 months baht 36.000 for a term of 4 years,paying interest 5 % ?????

cheers roobaa01

Not a banking product, instead it's an insurance product requiring premiums, js just the sort of thing the BOT link might show, not!

[roobaa01]

thank you Chiang mai do you have a link ????

cheers roobaa01

[55Jay]

Deposit rates can be found at BoT.

https://www.bot.or.th/english/statistics/_layouts/application/interest_rate/in_rate.aspx

Now and then folks still fixed deposit rates as they run across them.

The link you provided does not show specials offered by the banks, the link is effectively useless in that respect.

Here's an idea, why don't you start a thread and call it something like, Bank Interest Rates in Thailand, you could even call it BIRT for short, kinda catchy I reckon. That way all you have to do is post the same unchanged and boring BOT link every month albeit things may get just a little exciting if the MMC ever changes the base rate but apart from that, little effort will be required. It will be, really really useful and oh so informative!

Feel better now? I hope so. Jeezzz.

[55Jay]

gdaya folks,

I was given Information by a friend who visited pattaya in April 2016 but I did not believe it.

does anybody know the bank's name if it exists :

deposit into the account every 3 months baht 36.000 for a term of 4 years,paying interest 5 % ?????

cheers roobaa01

Not a banking product, instead it's an insurance product requiring premiums, js just the sort of thing the BOT link might show, not!

You know CM, posting that BoT link wasn't not a slight on your thread. After pages of the other chatter, it was somewhat back on track. You are directing your angst at the wrong person.

[ExpatOilWorker]

Nobody knows and very few care, certainly not the mods.

The thread has descended into a free for all about anything and everything including government savings deposit protection plans but hey, you wanted it so live with it.

You wannna know what the best bank interest rates are, go ask the bank.

How about a fresh 2016 thread and can this one?

[prepress]

sorry to jump in...

If my deposit interests exceeding 20,000 THB 15% tax is deducted from future interests.

To avoid this the bank recommends to open a new account - transfer the money - and the interest will start by 0 again.

Is this correct?

[55Jay]

sorry to jump in...

If my deposit interests exceeding 20,000 THB 15% tax is deducted from future interests.

To avoid this the bank recommends to open a new account - transfer the money - and the interest will start by 0 again.

Is this correct?

Yes, this is what I do at Krung Si.

Calendar new year also gives you a fresh start at 0.

[prepress]

It is true.

I transfered my money to a new account today. Starting with 0% tax.

They gave me even the date when it is time to renew. (if interest rates don't change)

Amazing Th

[JAS21]

I see that the Deposit Protection Scheme has been extended. Details are in todays Bangkok Post

[chiang mai]

I had always believed the DPA would be extended but was shot down over the issue too many times, it simply didn't make sense the rate would be cut so drastically to such a low level, in these uncertain times, I'm pleased about the new changes. DPA now phased in 5 mill. steps through 2020.

[meatboy]

latest interest news from SCB bank 6 different sites post, 2.80% fixed for 1yr. yippeeeeeeeeeeeeeeeeeeeeeeeeeeeeee.

dont get tooooooooooooooooooooooo excited its for 1000million bht.min.

[R123]

Hello Folks:

Around next week I want to bring in the equivalent of @ 800,000 baht which I can use in February 2017 for my retirement extension money. My usual Bank is Bangkok Bank but I notice the rate is now just 1.375%

Can anyone recommend another bank for the deposit (for 10 or 12 months is OK) with a higher return but which deposit will of course be acceptable to immigration....

Many thx any input!