Bank Savings Interest Rates

[Oxx]

1 minute ago, denby45 said:

Is that correct? I was actually looking into that.Didn't know there was risk involved. I remember they were stating interest and not profit rate as an Islamic Bank normally would.

 

Yes, it's correct.  They specifically describe their deposit products as "wadiah" and "mudarabah".  Any reference to interest rates is probably an issue with translation.

[orientalist]

Thanachart has extended its Ultra Savings account promotion of 1.50% for 100K up to 10m baht until June 30.

 

Currently the e-savings account pays 1.50% for the first 1 million baht.

[MadMac]

Nope, it is not correct. Islamic Bank as a Government bank pays interest rates as every other bank. But anyways, times of high interest are over there also. However they call it to comply with some Sharia or whatsoever "laws" is a complete different topic. Fixed interest, no deviations, and secured and taxed by the Thai government. No risk involved as with any other Thai government bank.

[Oxx]

27 minutes ago, MadMac said:

Islamic Bank as a Government bank pays interest rates as every other bank.

 

I fear you are showing your ignorance of Islamic law.

 

Paying interest is "riba" [usury] according to Islam and as such is "haram" [forbidden].  So Islamic Bank, if it's an Islamic bank, does not pay interest.

 

Or is it your contention that Islamic Bank is not an Islamic bank? That would be ridiculous.

[MadMac]

I don't care about Islamic law as only Thai government law is applicable here. 

 

Used them for 6 years or so and always got the interest at exact the rate they promised minus 15% tax, as every other bank does.

 

[smedly]

1 hour ago, Oxx said:

 

I fear you are showing your ignorance of Islamic law.

 

Paying interest is "riba" [usury] according to Islam and as such is "haram" [forbidden].  So Islamic Bank, if it's an Islamic bank, does not pay interest.

 

Or is it your contention that Islamic Bank is not an Islamic bank? That would be ridiculous.

what is the issue, operative two words "interest rate" - everyone here knows what it is and what it does, can we get back on topic please

[Oxx]

45 minutes ago, smedly said:

what is the issue, operative two words "interest rate" - everyone here knows what it is and what it does, can we get back on topic please

 

Yet some people don't seem to understand that Islamic banks don't have interest rates and don't pay interest.  It's a totally different system, while some people seem to wallow in their ignorance.  People need to be aware of the differences if they are to make informed investment decisions.

[smedly]

8 minutes ago, Oxx said:

 

Yet some people don't seem to understand that Islamic banks don't have interest rates and don't pay interest.  It's a totally different system, while some people seem to wallow in their ignorance.  People need to be aware of the differences if they are to make informed investment decisions.

seriously mate - call it a return or premium on a deposit balance if that makes you happy, it amounts to the same thing

 

now can we move on

[denby45]

2 hours ago, Oxx said:

 

Yet some people don't seem to understand that Islamic banks don't have interest rates and don't pay interest.  It's a totally different system, while some people seem to wallow in their ignorance.  People need to be aware of the differences if they are to make informed investment decisions.

I worked in Abu Dhabi for 14 years and of course they are mainly Islamic banks. However they do have interest bearing products which the expats make use of. Remember the UAE nationals are outnumbered by about 10:1 so to limit your bank to Islamic products would not be a good idea.

 

Den

[roobaa01]

just to make it more transparent i receive interest on my deposits in malaysia and indonesia and they call it interest, hence obviously no "haram "nonsense.

 

land and housing bank still offers 2 % , thb 10k min. 3 yrs.

 

wbr

roobaa01

[TallGuyJohninBKK]

Renewed a fixed deposit account for 1 year lately with CIMB Thai for 1.6%, with the option available to have the interest credited monthly. At the time I renewed it, their one year rate seemed to be about 0.10% higher than either BKKB or SCB were offering for the same 1 year term.

 

When I originally opened the fixed deposit account with CIMB a year ago, their main branch ran me thru the wringer, requiring my Thai wife to accompany for the account opening process and provide signed copies of her ID and Tabien Ban (but not to be a co-signer on the account), along with required a Thai address document (utility bill in my name with my address) from me. But this year when the original shorter term was up, the wife wasn't required and the whole process ultimately took about 5 minutes in branch. No new documents required, only the prior passbooks.

 

CIMB withholds the 15% interest on their fixed deposit accounts. But the one feature I found particularly annoying was the single day that your fixed deposit account expires on is apparently the only day they'll allow you to decide on a new/different term. I went with the wife less than a week before my original fixed account expired, and they refused to do anything at that point. And they told me, if I waited until after the actual expire date, they'd automatically extend the term themselves, apparently for the same as the expiring term (which is my case, was a shorter than 1 year term that I didn't want to have auto renewed).

 

And as usual, had a bit of the typical Thai bank staff circus at the pre-visit a week ahead of time. The original new accounts staff started out claiming the 1 year fixed deposit account I wanted was their preferred account (for higher balances) that I didn't qualify for. It wasn't and the rates sheet in front of her clearly said so, but anyways... Then another staff came along and began to tell me that the 1 year fixed account I wanted was only eligible for those with a tabien ban, which I didn't have. Then finally, a 3rd staff came along and told the original new accounts staff person that yes I could have to the regular 1 year fixed account. And fortunately the original staff heeded that advice, so that's the account I got.

[Sandman77]

I opened 2 banks acount before rules was not so strict like right now, my questions when lh bank where this bank located I never see any branch of them and tanchart give 1,70 procent for saving how the rules now for open the acount ? When I not have any work permit but willing to save enough money to get 1,70 procent is there any way to open a acount on that bank that give highest rates ?
I have scb and kasikorn acount I think I asked one year ago about interest rate for 3 year but it was much lower then 1,70 procent I read here !
What the current interest rates at moment for normal kasikorn and scb acount and for longer saving scb told me to get better rates must close and reopen acount new type but this not possible , because I not have a work permit kasikorn says diffrently from scb that I can get higher interests without change the acount type does lh bank or tamchart have higher rates for saving of 3 years ? Can I only not take money out within that time , but I can still transfer more in that bank acount or is this also not possible ? How is it about the bilateral tax agreement between Europe eu and thailand , and some never state does it Realy happen that savings in thailand will be taxed and reported to the home country of the acount owner ?


Gesendet von iPhone mit Thaivisa Connect

[meatboy]

aint time flying,i thought I had just renewed my fixed deposit acc.but that was last yr.april 2% for 3yrs.the last time oct.2017 2% was still available,3yrs.interest paid monthly into a separate acc.with tax withheld.refunded jan.-march following yr.not sure what the minimum deposit is to get the interest monthly.500,000bht.?

LH BANK.

[orientalist]

I still have one 5-year fixed deposit at 4% from Krung Thai. Unfortunately, that will end next year. Those were the days!

[meatboy]

8 minutes ago, orientalist said:

I still have one 5-year fixed deposit at 4% from Krung Thai. Unfortunately, that will end next year. Those were the days!

that reminds me I have to BURN my old note book from 2009.those days we wont see again.

 

[denby45]

2 hours ago, meatboy said:

aint time flying,i thought I had just renewed my fixed deposit acc.but that was last yr.april 2% for 3yrs.the last time oct.2017 2% was still available,3yrs.interest paid monthly into a separate acc.with tax withheld.refunded jan.-march following yr.not sure what the minimum deposit is to get the interest monthly.500,000bht.?

LH BANK.

You just reminded me. I applied for my tax refund (Jomtien) in Jan. Still no sign of any payment to date. Seems to be getting very late now. 

 

Den

[topt]

1 hour ago, denby45 said:

You just reminded me. I applied for my tax refund (Jomtien) in Jan. Still no sign of any payment to date. Seems to be getting very late now. 

 

Den

It may be worth ringing or seeing them. This happened to me last year and I had to complete some form a lady had on the 4th floor before they would release the cheque. This year no issue and I received the cheque late March/early April after applying early Jan.

[denby45]

1 hour ago, topt said:

It may be worth ringing or seeing them. This happened to me last year and I had to complete some form a lady had on the 4th floor before they would release the cheque. This year no issue and I received the cheque late March/early April after applying early Jan.

Good advice I will pop over there and find out what is happening.

 

Cheers

Den

[meatboy]

24 minutes ago, denby45 said:

Good advice I will pop over there and find out what is happening.

 

Cheers

Den

last yr.they told the wife mine will be paid 45days after I applied,this yr.they paid mine with the wife's prompt pay.10days.

[BobTH]

4 hours ago, meatboy said:

last yr.they told the wife mine will be paid 45days after I applied,this yr.they paid mine with the wife's prompt pay.10days.

I did mine at the local tax office, having it sent just regular mail and I received it in 28 days.

[orientalist]

LH Bank has just lowered most of its rates considerably:

 

1.20%  3 months

1.40%  6 months

1.55%  12 months

1.65%  24 months

1.70% 36 months

 

Thanachart's e-Savings account (1.50%) is currently your best bet for a short-term deposit.

[Oxx]

For those who've posted previously and don't understand Islamic banking, here's a simple overview:

 

http://www.thisismoney.co.uk/money/saving/article-5490171/What-Sharia-savings-accounts-work.html

 

Key quote:

 

Quote

paying interest - or ‘riba’ - is forbidden under Islamic law, which states that money is a medium of exchange with no intrinsic value of its own. 

So because money has no value in itself, it cannot therefore generate interest. Because of this fundamental principle, Sharia-compliant banks don’t offer interest

 

[denby45]

On 5/7/2018 at 2:22 PM, meatboy said:

last yr.they told the wife mine will be paid 45days after I applied,this yr.they paid mine with the wife's prompt pay.10days.

Went over there to Jomtien and inquired what was happening. Was directed to the 4th. floor. Had to wait about 20 minutes while they found my file. Then had to fill out a form with all sorts of questions about my income and monthly expenses. After that I had to sit with one lady and justify my in-comings and outgoings. I don't have a pension yet and am currently living off savings and interest at the bank. She did not like that idea at all. My accounts are all overseas apart from the account I use for expenses and another which is invested for 3 years in LH. She was basically trying to say that I should not be here at all because I don't have enough income. I use the 800,000 in the bank route to get my yearly retirement extension. I wanted to tell her it was none of her business but I bit my tongue.

 

Eventually another lady pitched up and started to ask similar questions. She could see I wasn't happy with the third degree as I was using short answers. Anyway eventually this lady agreed that I should be paid. However there were 2 payments and she suggested that I should forget about the smaller of the 2 payments so as to "Help Thailand out" <deleted>.

I guess without this visit and my intervention, that file would have remained on someone's desk and eventually ended up in the bin.

Anyway one week later I am still awaiting the arrival of the cheque.

   

Den 

[topt]

On 5/28/2018 at 3:03 PM, denby45 said:

Went over there to Jomtien and inquired what was happening. Was directed to the 4th. floor. Had to wait about 20 minutes while they found my file. Then had to fill out a form with all sorts of questions about my income and monthly expenses. After that I had to sit with one lady and justify my in-comings and outgoings. I don't have a pension yet and am currently living off savings and interest at the bank. She did not like that idea at all. My accounts are all overseas apart from the account I use for expenses and another which is invested for 3 years in LH. She was basically trying to say that I should not be here at all because I don't have enough income. I use the 800,000 in the bank route to get my yearly retirement extension. I wanted to tell her it was none of her business but I bit my tongue.

 

Eventually another lady pitched up and started to ask similar questions. She could see I wasn't happy with the third degree as I was using short answers. Anyway eventually this lady agreed that I should be paid. However there were 2 payments and she suggested that I should forget about the smaller of the 2 payments so as to "Help Thailand out" <deleted>.

I guess without this visit and my intervention, that file would have remained on someone's desk and eventually ended up in the bin.

Anyway one week later I am still awaiting the arrival of the cheque.

   

Den 

Sounds like someone has asked them to get tougher as I had no such issues - in fact the reverse.

I envy your tact and patience 

[denby45]

On 5/30/2018 at 10:52 AM, topt said:

Sounds like someone has asked them to get tougher as I had no such issues - in fact the reverse.

I envy your tact and patience 

Tact and patience finally paid off, 2 cheques finally arrived this morning.

 

Den

[kuma]

Great thread here - does anyone have a link to a site that may possibly aggregate all these bank offerings - such as the ICBC Subordinated Debenture (10years) mentioned above?

 

Just recently retired and pondering moving a cushion of 2-3 years living expenses here and would like to park it in some interest bearing instrument or two (perhaps build a three rung ladder)

 

Thanks in advance for any input

 

Cheers

[orientalist]

12 months fixed deposit:

 

1.65% CIMB Preferred

1.60% CIMB

1.55% LH

1.50% Thanachart

[worgeordie]

It would be nice if we could get interest rates,that were

higher than inflation,not inflation rates that the Government

says,but the real inflation rates.

Talk about the good old days,the highest rate I had here was

18%,fixed 3 months,the days when you could hawk your cash

around different banks,and get to see the manager,looking

to get .25-75% more, when they gave you gifts for opening

an account,I have had tea sets to umbrellas.now they really

don't want to know you.

After the crash in Thailand,when the interest rates started

to tumble,to put it mildly, moved out of cash and the 

meager interest rates into property,and very glad I did,

there were bargains to be had,difficult to find bargains

now,stupid asking prices.

 

regards Worgeordie 

[kuma]

Orientalist 

 

Thanks for the update on prevailing rates at those banks - as I recall KB is in about the same range so all are pretty much on the same page.

 

As mentioned by Worgeordie, not sure how those rates keep pace with inflation, but at least they are getting you part the way there, that and more if you align with ABD forecasts:

 

https://www.adb.org/countries/thailand/economy

 

Cheers

[kuma]

3 hours ago, worgeordie said:

It would be nice if we could get interest rates,that were

higher than inflation,not inflation rates that the Government

says,but the real inflation rates.

Talk about the good old days,the highest rate I had here was

18%,fixed 3 months,the days when you could hawk your cash

around different banks,and get to see the manager,looking

to get .25-75% more, when they gave you gifts for opening

an account,I have had tea sets to umbrellas.now they really

don't want to know you.

After the crash in Thailand,when the interest rates started

to tumble,to put it mildly, moved out of cash and the 

meager interest rates into property,and very glad I did,

there were bargains to be had,difficult to find bargains

now,stupid asking prices.

 

regards Worgeordie 

Worgeordie:

 

How is the Moloko+ today in the milk bar? ?

 

Regarding your mention of real property above - I am pondering a purchase of a rai or so in Chan, zoned green, but within the Amphur (full Amphur service) and close to water, featuring a mix of fully developed fruit trees (variety, it was a hobby farm area). Asking 2.5M THB, or 6250THB/TW

 

What would you say to that price in 2018?