Commercial Banks Announce An Increase In Savings Interest

[mr.buffalo]

great..terrific...but,

does it apply to falang accounts?

Heh silly boy forget that just give your money to moi(me)

no worrys..

cheques in the mail,

what are the other two....?

great..terrific...but,

does it apply to falang accounts?

Heh silly boy forget that just give your money to moi(me)

no worrys..

cheques in the mail,

what are the other two....?

been trying to answer the question " what are the other two "

" i won't come in your mouth " and "i'll pay you tomorrow "

[srisatch]

There is a relationship between the ( perceived) 'strength' of the Baht, or indeed any currency ie its 'level of covertability' against other currencies and interest rates. In recent months the Baht has 'strengthened' against the Euro, the Dollar and GBP, partly as a consequence of the 'strengthening' of the Yen and the Yuan.

If interest rates in Thailand rise to a level comparable with the US/Eurozone it would seem the Baht will strengthen further..though the risks of holding Thai Baht will always influence that.

The problem for many people is that their sources of funds are in dollars/euros or GBP. So they are always in need of trying to guess whether it is a good time to transfer funds into Thailand or leave them abroad.

Sure if you had funds in Thai Baht in 1997 and wanted to repatriate them you were in trouble; but conversely there were people shovelling money at 1GBP=90 Baht into Thailand...why do you think I yearn for the return of Chavalit?!

My understanding is that trying to outguess FOREX markets is a mug's game. Keep in Thailand what you need to live/build/invest. Keep the rest elsewhere...more than one place?? Or not?

If the Yuan went to say 6 to the $ what would happen to the Baht!!?

[lung]

i not reed 2 weeks ago now they need forein money to pay out some clan ??

i think it's a "troll" - promotion

thailand vs disneyland ?

Edited March 7, 2006 by lung

[Heng]

Of course; this is not simply "good news"; this is "putting things right" finally. Up until now, the effective interest paid on savings accounts, in this country, was grossly below what would be termed as "normal" in other developed nations around the world.

I am just wondering if this may have something to do with the imminent demise of one Khun Taksin . . . . . . . ? ? ? Now THAT would not suprise me in the least !

Strange because it's not really news. I don't know when the effective date was, but I have fixed accounts at both Kasikorn and Bangkok Bank turned over into the 4% tier (5 million Baht min.) that are 3-4+ months old. As I recall, some of the newer banks like Thanachart and Kiatnakin were offering fixed accounts at that rate and the old boys were simply matching their rates. ...Well before this whingy Thaksin hubbub.

Incidentally, the best CD rates I have at the moment stateside are only 4.40% (24 months as well, $100k min.). Not exactly a world of difference. Yes, sometimes you'll find better rates elsewhere, but for a good part of the late 80's and 90's some of the better rates were right here in town at 8.5-9.5+%

[mbkudu]

Commercial banks announce an increase in savings interest

Following announcements by the Kasikorn and Siam Commercial Bank that there will be an increase in interest rates, many other commercial banks have made similar announcements.

=============================================================

Of course; this is not simply "good news"; this is "putting things right" finally. Up until now, the effective interest paid on savings accounts, in this country, was grossly below what would be termed as "normal" in other developed nations around the world.

You silly little fruit! My savings account from Wells Fargo Bank here in California, the USA (somewhat developed country) gives me a whopping, are you ready?, 0.25%! This is their so called 'Gold Account'

because at one time I had $50,000 in it. Now there's about $600 in it. I've had this account for 6 years.

Edited March 7, 2006 by mbkudu

[meom]

Average and most Thais and I suspect foreigners have most of the money it their savings accounts which pay between 0.75% to 1.00%. This rate is much lower than the inflation rate thus the interest earned is nil not to mentioned that it is also taxed.

How much is the tax on interest and how is it withheld? Someone told me its 15% and deducted directly by the bank. Don't know if that's correct though.

[george]

Average and most Thais and I suspect foreigners have most of the money it their savings accounts which pay between 0.75% to 1.00%. This rate is much lower than the inflation rate thus the interest earned is nil not to mentioned that it is also taxed.

How much is the tax on interest and how is it withheld? Someone told me its 15% and deducted directly by the bank. Don't know if that's correct though.

15% tax is withheld by the bank.

[KK-Mike]

great..terrific...but,

does it apply to falang accounts?

Yes, I checked with Bangkok Bank today and they said yes.

[Anon999]

The baht is currently significantly stronger than it was only a short time ago. The exchange rate against the £ sterling has been around +/- 68 for a few weeks and against the $US +/- 39.

Is that really a strong Baht, or a weak(er) dollar?

I know they have a basket of currencies, but in my book they

still have all their dollars in one basket.

The £ sterling has barely moved against the US$ or the Euro. It was about 40 to US$, so the Thai baht, for whatever reason, is stronger than it was. However, as everything tends to be cyclical it is likely that this current strength will reverse. Providing political unrest does not upset the apple cart it should be a fairly gentle change.

As another post mentioned trend following is a great thing to do and the Turtles system seems to win long term. My recollection is it has made a profit 21 years out of 22, not bad.

Edited March 7, 2006 by Anon999

[Anon999]

My understanding is that trying to outguess FOREX markets is a mug's game. Keep in Thailand what you need to live/build/invest. Keep the rest elsewhere...more than one place?? Or not?

If the Yuan went to say 6 to the $ what would happen to the Baht!!?

The Yuan is fixed against the US$, its value was recently adjusted, but is still artificially low. However, if and when the Chinese allow it to float, then it will certainly appreciate significantly against $, £, Euro, Yen and most other currencies, I would guess. However, what affect that would have on any other individual currency is debatable.

[john b good]

Commercial banks announce an increase in savings interest

Following announcements by the Kasikorn and Siam Commercial Bank that there will be an increase in interest rates, many other commercial banks have made similar announcements.

=============================================================

Of course; this is not simply "good news"; this is "putting things right" finally. Up until now, the effective interest paid on savings accounts, in this country, was grossly below what would be termed as "normal" in other developed nations around the world.

I am just wondering if this may have something to do with the imminent demise of one Khun Taksin . . . . . . . ? ? ? Now THAT would not suprise me in the least !

Since when has Thailand ever been able to adopt the title of a "developed nation"

If it was developed a foreigner would get the same interest from the banks, they would be able to buy property as do Thais living in "developed nations"

When you have people like the head waiter at the helm, the realm will never attain the status of being a "developed nation"

[jantrevor]

If I remember correctly Farangs do not get interest on savings accounts. You can open one though.

[backflip]

You girls are a hoot! When the savings/checking interests rates were low, you complained. Now, with the increased interest rates, you still complain. I love it!

[barryofthailand]

i do not think a rise like that is good ! Inflation rampant, what going to happen next!

A slow down in the Economy and higher unemployment

You can't get much higher unemployment, as only 30% has real jobs anyway.

Barry

[Sunderland]

i do not think a rise like that is good ! Inflation rampant, what going to happen next!

A slow down in the Economy and higher unemployment

You can't get much higher unemployment, as only 30% has real jobs anyway.

Barry

Yes, and many of the other 70% have better English grammar than some people on here

[slim]

The £ sterling has barely moved against the US$ or the Euro. It was about 40 to US$, so the Thai baht, for whatever reason, is stronger than it was. However, as everything tends to be cyclical it is likely that this current strength will reverse. Providing political unrest does not upset the apple cart it should be a fairly gentle change.

"for whatever reason" being the key phrase.

There'll be a reason but it will be down the market forces we're not aware of.

In January 1997 you were getting just 42 baht to the pound - 12 months later it was 86 baht.

Since then the baht has traded in a fairly consistent 60-75 price range.

However, as everything tends to be cyclical it is likely that this current strength will reverse.

Hope so, I need to show Immigration I've got 200,000 in a Thai bank for my visa and its currently in GBP in my safe decreasing in value !!!

Edited March 8, 2006 by slim

[samran]

You girls are a hoot! When the savings/checking interests rates were low, you complained. Now, with the increased interest rates, you still complain. I love it!

It is the disproportionate amount of the poms on this site

More than once I have lobbied george and Dr P to change this site from Thai Visa to www.thaigeezer.com, so that we can be more reflective of our demographic.

[Heng]

You girls are a hoot! When the savings/checking interests rates were low, you complained. Now, with the increased interest rates, you still complain. I love it!

[the gent]

I'm a bit of a dunderhead when it comes to Economics but it seems to me that a jump in borrowing rates from 2 - 3 % to 7% is indicative of pressing the financial panic button. Either inflation has rocketed or the BoT is defending the baht. In either case something serious is happening notwithstanding the Thaksin factor. Or is it Thaksin himself manipulating the market to his own ends?

Are there any experts out there who can read the runes? Cassandra need not reply since we are bound to disbelieve ......

[Losangels]

I'm a bit of a dunderhead when it comes to Economics but it seems to me that a jump in borrowing rates from 2 - 3 % to 7% is indicative of pressing the financial panic button. Either inflation has rocketed or the BoT is defending the baht. In either case something serious is happening notwithstanding the Thaksin factor. Or is it Thaksin himself manipulating the market to his own ends?

Are there any experts out there who can read the runes? Cassandra need not reply since we are bound to disbelieve ......

I'm no expert but I'll give it a shot, I feel that Baht vs US$ has peaked. Thaksin and people close to him are definitely one of the main reasons for the strong Baht. Once he's been paid in full from the telecom deal the Baht will stabalize and become weaker. The Thai economy does not benefit from a strong Baht due to its dependent on export earnings.

[Heng]

I'm a bit of a dunderhead when it comes to Economics but it seems to me that a jump in borrowing rates from 2 - 3 % to 7% is indicative of pressing the financial panic button. Either inflation has rocketed or the BoT is defending the baht. In either case something serious is happening notwithstanding the Thaksin factor. Or is it Thaksin himself manipulating the market to his own ends?

Are there any experts out there who can read the runes? Cassandra need not reply since we are bound to disbelieve ......

The jump wasn't that drastic. The data can surely be accessed through the BOT, possibly on their website. But just off the top of my head (I don't have exact dates as I never take out loans) , MLR was around 5.50 for much of 2004 and it has "jumped" up 25-50 satang every few to several months to it's current 7.00-7.50 level (depending on your bank... but all pretty darn close as they usually match each other). Hardly any panic button action.

[warriors]

Look guys it really simple. The rates only went up .25% per unit, no big deal. If you want to keep your money in for 12 months locked up, then up to you. I would not. As I have said before, PLAY TO THE RULES for the right visa for you and there is no big loss. Regarding and I can not remember who said it, but worrying about 200,000 Bhat and also having it in an English pounds account instead of in your required Thai baht account for only your visa requirements is sort of strange to me.

What's the pound worth against the Thai Baht today? say it is 60 baht to the pound = ONLY 333 POUNDS. What is all the fuss about? Even 800,000 the differance in a 2.5% Thai Bank versus your own Bank what ever country, is not worth the hassels to move it out of Thailand and then bring it back when you think you need it. Its realy small change.

Do the figs and you will see. Plus you are cheating when you sign the form that shows you have 800,000 or 400,000 for retirement then you pull it out ( unless it wasn't even yours to start with and then that is another matter. Which I do not want to make comment on.

[Phano]

Commercial banks announce an increase in savings interest

Following announcements by the Kasikorn and Siam Commercial Bank that there will be an increase in interest rates, many other commercial banks have made similar announcements.

=============================================================

Of course; this is not simply "good news"; this is "putting things right" finally. Up until now, the effective interest paid on savings accounts, in this country, was grossly below what would be termed as "normal" in other developed nations around the world.

I am just wondering if this may have something to do with the imminent demise of one Khun Taksin . . . . . . . ? ? ? Now THAT would not suprise me in the least !

True!? Farangs do not earn interest on Savings accounts?

Since when has Thailand ever been able to adopt the title of a "developed nation"

If it was developed a foreigner would get the same interest from the banks, they would be able to buy property as do Thais living in "developed nations"

When you have people like the head waiter at the helm, the realm will never attain the status of being a "developed nation"

[slim]

I'm a bit of a dunderhead when it comes to Economics

and reading by all accounts.

WHY NOT READ THE THREAD !!!!!

Interest rates have been raised by .25% - the lowest possible raise and perfectly normal banking procedure.

I'm no expert but I'll give it a shot, I feel that Baht vs US$ has peaked. Thaksin and people close to him are definitely one of the main reasons for the strong Baht

Well - you got the 3 words right.

When T.S. came to power in January 2001 the Thai baht/USD was 44.14

by December 2001 it was 43.95

by December 2002 it was 43.31

by December 2003 it was 39.73

by December 2004 it was 39.18

by December 2005 it was 41.06

The Baht isn't particularly strong - its stronger than it was - true - but all currency's move within a certain band - there's nothing to suggest there's anything special or significant going on here.

[John 1]

PUT your money in Krung Thai bank for 9 months interest 4.25% paid monthly to a saving account, I think the offer end 24 March. this is not on there web site some branches have a banner and it was in Bangkok post the other day.

[cclub75]

15% tax is withheld by the bank.

Go to Singapore. With a FD in australian dollar, you can get 4.7 % with 1 month tenure, and tax free.

Why AUD ? Well it's more secure than new zeland dollar for instance, and offer higher interest rate than Euro for instance. So it's a good compromise.

They have growth, and many commodities. I'll bet on AUD.

Or with HSBC in HK, they offer 1 week tenure, if really you don't like risk. It's unlikely that AUD could crash versus THB overnight... right ?

[warriors]

New Zealand correct spelling. 7.3% is still a good return for N.Z. yes I know N.Z. $ is dropping and about time but so is the Ausy. Sooooooooooooooooooooo I have both Ausy shares and N.Z. Term deposits. I also keep what is required by visa requirements in Thai Bank, it is earning now 3% on 3 month term.

[the gent]

I'm a bit of a dunderhead when it comes to Economics

and reading by all accounts.

WHY NOT READ THE THREAD !!!!!

Interest rates have been raised by .25% - the lowest possible raise and perfectly normal banking procedure.

I'm no expert but I'll give it a shot, I feel that Baht vs US$ has peaked. Thaksin and people close to him are definitely one of the main reasons for the strong Baht

Well - you got the 3 words right.

When T.S. came to power in January 2001 the Thai baht/USD was 44.14

by December 2001 it was 43.95

by December 2002 it was 43.31

by December 2003 it was 39.73

by December 2004 it was 39.18

by December 2005 it was 41.06

The Baht isn't particularly strong - its stronger than it was - true - but all currency's move within a certain band - there's nothing to suggest there's anything special or significant going on here.

Gosh, you are Mr Poopy aren't you. Although you are right to correct me, as Heng has done albeit in a kinder fashion, perhaps to my defence I should say that I mistakenly believed that 2-3 % was the normal rate for a secured loan and that the MLR was correspondingly low. I have no first hand knowledge but based this on previous experiences of others. I also scanned the thread and too quickly at that ( I am a dunderhead after all ). I promise to do better.

[Heng]

I have no first hand knowledge but based this on previous experiences of others. I also scanned the thread and too quickly at that ( I am a dunderhead after all ). I promise to do better.

These are common issues on the board, you're not alone.

[george]

BBL raises deposit and lending rates

Bangkok Bank Plc (BBL) announced Wednesday that it has raised its lending rates for all types of loans by 0.25 per cent and its deposit rates by 0.25-0.50 per cent, effective as of today.

The bank's higher minimum lending rate (MLR) will be at 7.25 per cent, minimum overdraft rate (MOR) at 7.50 per cent and minimum retail rate (MRR) at 7.75 per cent.

The bank's 3 and 6 months fixed deposit rates were increased by 0.50 per cent to 3.00-3.75 per cent and 3.25-4.00 per cent respectively. The 12 months fixed deposit rate was raised by 0.25-0.50 per cent to 3.75-4.25 per cent. The 24 months fixed deposit rate was increased to 4.25 per cent; 36 months fixed deposit rate raised to 4.25 per cent.

--The Nation 2006-03-15