Where To Put 15-20K Thb A Month For 5 Years Savings?

[cbrer]

I’m looking for different ways of putting aside 15-20k baht every month. Probably for around 5 years.

The money would likely be then used in Thailand.

I am an Irish born national living here.

I am not that interested in putting it in my Thai bank account to earn almost no interest.

I could likely open an Irish savings account with around 4% interest (guess) but then there are transfer costs and the rest. I am married to a Thai here but not working so no WP to get very cheap transfers.

The plan would be to save around 1 million baht and then use it for something for me daughter here, like a down payment on a condo or something.

Gold is a possibility but I don’t like the insecurity of it and rather have money in a bank in my name.

Any ideas? Banks in the region (SEA) that I can open a savings account that has semi-decent terms?

Thanks.

[rgs2001uk]

I would consider either Aberdeen or ING LTFs, I have both and have been pleasantly surprised by the returns.

[cbrer]

Thanks. I've never invested in anything other than gold ingots here and wouldn't know where to start. But it is something I will be looking into as an option. I will take a look at those. Thanks.

[PattayaPhom]

Irish banks are offering 4% on a regular saver over 5 years....where is that? Do your homework, Thai banks are offering more than any Euro Bank....without risk of course.....Loads of offers for Oz accounts around but that isnt gauranteed, could you accept loosing the money you have put aside for your daughter?...I enquired two years ago with a company that advertises on this website, they are based in Gibralta and constantly called for over 18 months and wouldnt take no for an answer, shows what kind of companies are out there...no gaurantees or government protection....by the by have a new number now.

[djayz]

4% in Ireland?!?!? Tell me which bank is offering that as I'm only making 1.5% at the moment in Ireland.

Fixed term deposits here are offering around 3% per year. I'm happy enough with that.

Check http://www.bot.or.th/english/statistics/financialmarkets/interestrate/_layouts/application/interest_rate/IN_Rate.aspx

[GarryP]

I would consider either Aberdeen or ING LTFs, I have both and have been pleasantly surprised by the returns.

I am looking at going this way. The returns seem much much better than a simple savings account and LTFs and RMFs are tax deductible. But unfortunately the OP isn't going to benefit from this. I was looking at Bangkok Bank, but Aberdeen was also recommended to me.

Bangkok Bank has a Sinmattaya account where you save a fixed amount each month up to 20k over 24 months. When you select the amount, you must deposit such amount very month, no more, no less. The interest is slightly higher than a fixed deposit account and is not subject to income tax on the interest. You can only have one such account at any one time though. I do not know if a Work Permit is required or not as I have never truied opening an account without one.

Another option would be a Bualuang Thanatavee Fixed Income Fund. Again no tax on the interest, withdrawal available upon 24 hours notice, better rates than normal fixed term account. No monthly limits. Don't know if WP is required though.

[cbrer]

Aberdeen sounds quite interesting.

I don't suppose there's an 'Investing in an Asset Management for Dummies' thread?

I presume there's more to it than opening an account with them and then transferring my monthly deposit.

Do you also have to choose what sort of fund you want to invest in and other such stuff?

Do you pay any fees (Upon opening, quarterly/annually etc.) ?

And is it like an ATM bank account where you can deposit or take out money as you please from an ATM?

Is there risk of losing the capial if the funds invested in crash or fall?

It would be great if someone could answer these Q's.

Thanks.

[Lobber]

Whats a WP got to do with "cheap transfers"?????????????

[cbrer]

Whats a WP got to do with "cheap transfers"?????????????

Last time I checked, which was about 3 years ago, SCB (I think) and maybe another bank had an international transfer service for 300 baht for any amount up to something like 50k. Upon presentation of your WP to prove that it was money earned in the kingdom. Which was the main stipulation.

[PattayaPhom]

Aberdeen sounds quite interesting.

I don't suppose there's an 'Investing in an Asset Management for Dummies' thread?

I presume there's more to it than opening an account with them and then transferring my monthly deposit.

Do you also have to choose what sort of fund you want to invest in and other such stuff?

Do you pay any fees (Upon opening, quarterly/annually etc.) ?

And is it like an ATM bank account where you can deposit or take out money as you please from an ATM?

Is there risk of losing the capial if the funds invested in crash or fall?

It would be great if someone could answer these Q's.

Thanks.

Just remember the definition of a long term investment...is a short term investment gone wrong...tread carefully with your daughters money. You seemed reasonably happy with 4% you wrongly thought you could get in Ireland, that is almost achievable in Thailand without risk.......

[fletchsmile]

If you're looking to save for a specific purpose with a specific end sum of money in mind like a downpayment on a condo, you may be better off in cash, even though lower returns and not so sexy.

Don't just look at the interest rate, think also of the currency risk. 4% on EUR or GBP may sound better than 3% on THB, but when you think of the problems the Eurozone and UK have and the weakening of their currencies that could wipe out any interest gains. eg last 5 years GBP and USD are down about 30% vs THB so that loss would have effectively wiped out any interest received, let alone interest rate difference. Generally the weaker a currency the higher its rates and that's not a coincidence. (lot of other factors too, but that's a general correlation)

If you need a fixed amount in THB then holding THB cash is less risk than holding GBP/USD/EUR etc

If however, your chasing higher returns, and prepared to in turn risk falls in your capital, check out the post on the following thread for some ideas on unit trusts. They apply to general investment not just pensions

http://www.thaivisa.com/forum/topic/613549-pension/

[CWMcMurray]

Although for purchase of Mutual funds... the bank wanted to see my WP, so not sure if this is an option for the OP.

[yoshiwara]

Greater than 4% wanted with a low risk profile.

Can't be done.

[Gonsalviz]

Last I checked Kasikorn and I think most others had accounts that earn 3.5% (maybe more now).

[fletchsmile]

Although for purchase of Mutual funds... the bank wanted to see my WP, so not sure if this is an option for the OP.

Possible to encounter some resistance, but a WP isn't essential. More important is a longer term visa. eg Non-Imm O or Non-Imm B with a one year extension - don't think even that is essential tho'. If you already had a relationship with the bank that helps.

I've bought mutual funds here while taking career breaks. They ask for it, and I just say I don't work any more...then they ask for the passport and copy of visa/ extension page. You can also buy in the wife's name if Thai very easily. Or even in your kids name by you, eg "A Child Smith by Mr. Parent Smith" or "kids by mother"

[meatboy]

beware of these pyramid scheme's there seems to be a few operating arround,just been reading that a big global hi-tech market seller has been busted for running one.