Children's Savings

[TexasRanger]

Anyone know of a decent savings account for a Thai child? Something to put regular deposits for her future that she can access after 16 years or so?

[fletchsmile]

We regularly buy mutual funds/ unit trusts via our bank - mainly equity funds. For the time horizon you're talking this makes more sense than cash.

The cash rates on bank accounts are struggling to keep pace with inflation. We have some too for the kids but the bulk of regular money goes into mutual fund investment rather than cash savings.

You can open accounts in the format:

"Child name by parent name" so "Baby Ranger by Texas Ranger" as the kids can't open in their own right at that age.

Cheers

Fletch

[Mario2008]

Depends on what you want to do with the account. if you want to set money away so the parents can't touch it, a trust found or such is the best which pays when the child becomes 20 (and of age). Otherwise parents can touch the account from their children. They are not allowed to buy a new car for themselves with it, but can use the money to finance the child's education for example.

For just simple saving, many schools have a bank at their school, where students can deposit money once a week or so. The Government Savings Bank is popular at schools.

[rgs2001uk]

Depends on what you want to do with the account. if you want to set money away so the parents can't touch it, a trust found or such is the best which pays when the child becomes 20 (and of age). Otherwise parents can touch the account from their children. They are not allowed to buy a new car for themselves with it, but can use the money to finance the child's education for example.

For just simple saving, many schools have a bank at their school, where students can deposit money once a week or so. The Government Savings Bank is popular at schools.

Someone please correct me if I am wrong, from what I remember, there is no such thing as a trust fund in Thailand.

FS in post #2 has nailed it.

Aberdeen and ING are as good as any place to start with.

[Suradit69]

Depends on what you want to do with the account. if you want to set money away so the parents can't touch it, a trust found or such is the best which pays when the child becomes 20 (and of age). Otherwise parents can touch the account from their children. They are not allowed to buy a new car for themselves with it, but can use the money to finance the child's education for example.

For just simple saving, many schools have a bank at their school, where students can deposit money once a week or so. The Government Savings Bank is popular at schools.

"They are not allowed to buy a new car for themselves with it, but can use the money to finance the child's education for example."

Not allowed by whom? Assuming trust funds exist in Thailand, who would monitor the purpose for which the funds were being withdrawn? I can't imagine that being left to the discretion of a bank manager and anything involving proper trustees sounds like an expensive undertaking and still open to abuse.

[rayongchelsea]

No trust fund concept in Thailand.

[Mike45]

I asked my bank in Thailand if I could make someone (my wife) the beneficiary on the account. That way upon my death she would automatically own it. It can't be done. It is also difficult for your wife to get hold of the money after you die.

[TexasRanger]

Yeah, it's actually better if it is in the kids name with Mum as signatory. Not worried about the parents as the kid is mine so no danger of the piggy bank being raided. It is just an account to provide her with a nest egg for when she gets older, a disciplined way for me to put money away regularly. The education fund will be separate. Not sure wether it is better here or overseas but thought it may be less red tape here if I kick the bucket.

[Krataiboy]

Depends on what you want to do with the account. if you want to set money away so the parents can't touch it, a trust found (fund) or such is the best . . .

I was told that one could not create atrust fund for a child or anyone else in Thailand. Maybe the law has changed recently and if so I (as I am sure would others) would be grateful for a source.

[Mario2008]

I was not sure if a trust fund can be set up in Thailand. But trust funds can be set up abroad. My main aim was to inquire about wht the OP exactly wants with the account.

As to the question from Suradit69: Thai law clearly marks the child's possessions as being of the child. The guardian must take good care of that and are liable for mususe and mismanegement.

But, as in most other countries, Thai law also provides that the child's money can be used for the child itself and that children must maintain their parents if the parents don't have (enough) money themselves.

All provided for in the Thai civil code.

An account in Thailand will sure be less red tape and easier to access.

[regedit]

Could you explain how you go about doing this if you already have an account that allows you to buy funds in your own name. Do you have to open a new account 'Child name by parent name' and submit all the documentation, risk assessment, etc. again, or is there a short-cut ?

We regularly buy mutual funds/ unit trusts via our bank - mainly equity funds. For the time horizon you're talking this makes more sense than cash.

You can open accounts in the format:

"Child name by parent name" so "Baby Ranger by Texas Ranger" as the kids can't open in their own right at that age.

[fletchsmile]

Could you explain how you go about doing this if you already have an account that allows you to buy funds in your own name. Do you have to open a new account 'Child name by parent name' and submit all the documentation, risk assessment, etc. again, or is there a short-cut ?

We regularly buy mutual funds/ unit trusts via our bank - mainly equity funds. For the time horizon you're talking this makes more sense than cash.

You can open accounts in the format:

"Child name by parent name" so "Baby Ranger by Texas Ranger" as the kids can't open in their own right at that age.

Yes you have to go thru all the account opening forms again. More copies of your passport. Copy of the kid's passport, tabian bahn, birth certificate etc.

For unit trusts/ mutual funds I set up as "little smile by father smile"

For bank accounts I set up 2 each: "little smile by father smile" and "little smile by mother smile", plus internet banking so I can transfer between them and my own account as needed as they can't get ATM cards etc.

Loads of paperwork to set up. T.I.T after all. I have "priority banking" though and a great relationship manager who takes away a lot of the headaches. She knows well what our family is looking for and how I like to organise things.

Cheers

Fletch

Edited May 16, 2013 by fletchsmile