Thanachart Ultra Savings Account Has a Serious Catch

[Obb]

This account requires a balance of 5,000 baht be maintained. To withdraw that last 5,000 baht you must show up in person at the branch at which you opened the account. You are not able to withdraw the last 5,000 from an ATM or in another branch.

And then you must close the account!

[Upnotover]

And they pay some massive interest amount? If not and if either of these onerous conditions are unacceptable to you then I'd be going elsewhere.

[Pib]

Yeap, from looking at their web site with some help with Google Translate (even their so called English version) for their Ultra Savings account 5000 baht is the minimum balance allowed and you must come go to your branch to close the account.

[alfieconn]

Can't really see where the catch is all the conditions are on their website.

[jbrain]

Why would you wanna maintain an account if you withdraw it to zero ?

[trajan]

what is the attraction of a Thanachart Ultra account? do they give a high interest rate return?

[Pib]

what is the attraction of a Thanachart Ultra account? do they give a high interest rate return?

The interest rate is not high in comparison to other regular saving or fixed savings accounts...that is, 0.5% up to 30K baht, 2.0% from 30K to 1M baht, and 2.6% from 1M to 10M baht if I read their interest rate table right. However, but their web page says you can withdraw funds up to 2 times a month which you can't with a straight fixed account without losing interest...not clear if you do lose some interest/get hit with a interest penalty on the Ultra savings account if withdrawing frequently since it appears it also pays interest each month vs at maturity like most fixed accounts, and it's been granted tax exempt status...I guess that means they don't send 15% of the earned interest to the govt like on a standard fixed account (although you can get the 15% refund each year from the govt by filing a refund request with you local tax office). Note: above info is based on my interpretation of a not so great google transaction of the Ultra Savings webpage.

[jbrain]

what is the attraction of a Thanachart Ultra account? do they give a high interest rate return?

The interest rate is not high in comparison to other regular saving or fixed savings accounts...that is, 0.5% up to 30K baht, 2.0% from 30K to 1M baht, and 2.6% from 1M to 10M baht if I read their interest rate table right. However, but their web page says you can withdraw funds up to 2 times a month which you can't with a straight fixed account without losing interest...not clear if you do lose some interest/get hit with a interest penalty on the Ultra savings account if withdrawing frequently since it appears it also pays interest each month vs at maturity like most fixed accounts, and it's been granted tax exempt status...I guess that means they don't send 15% of the earned interest to the govt like on a standard fixed account (although you can get the 15% refund each year from the govt by filing a refund request with you local tax office). Note: above info is based on my interpretation of a not so great google transaction of the Ultra Savings webpage.

They cut the 15% on the interest on a certain amount. I know because I have a similar account with Bank of Ayudhya and they warned me last week that i needed to keep an eye that I didn't go above the maximum interest allowed without tax.

As for the refund of the 15% by the revenue office, I posted that question some time ago on this forum, and was told then that it wasn't possible.

Could you please explain what are the requirements and procedure? I recall that you need to have a personal tax id ?

[Pib]

As for the refund of the 15% by the revenue office, I posted that question some time ago on this forum, and was told then that it wasn't possible.

Could you please explain what are the requirements and procedure? I recall that you need to have a personal tax id ?

Sure....take a look at this Thread I posted in Jan 13. It was easy.

[jbrain]

As for the refund of the 15% by the revenue office, I posted that question some time ago on this forum, and was told then that it wasn't possible.

Could you please explain what are the requirements and procedure? I recall that you need to have a personal tax id ?

Sure....take a look at this Thread I posted in Jan 13. It was easy.

Thanks for the link, I've been reading it.

Few questions of course.

Why do they deduct witholding tax if they gonne give it back anyway, or is this only for foreigners?

I notice you say in the OP of that thread, January it's tax time again. Does that mean you do a tax filling every year, regardless of the fact that you don't have an income or have witholding tax to claim?

[Pib]

As for the refund of the 15% by the revenue office, I posted that question some time ago on this forum, and was told then that it wasn't possible.

Could you please explain what are the requirements and procedure? I recall that you need to have a personal tax id ?

Sure....take a look at this Thread I posted in Jan 13. It was easy.

Thanks for the link, I've been reading it.

Few questions of course.

Why do they deduct witholding tax if they gonne give it back anyway, or is this only for foreigners?

I notice you say in the OP of that thread, January it's tax time again. Does that mean you do a tax filling every year, regardless of the fact that you don't have an income or have witholding tax to claim?

It's the law...and it's a law that applies to Thai's, expats, Martians, whoever earns interest of "any amount" from standard "fixed" accounts...and I think it even applies to "regular" savings accounts (like the kind that comes with a debit card, you can withdraw funds without any interest penalty, etc) if earning over Bt20K in interest. Banks who sent the tax withholding to the govt can't determine in each individual's case as to whether a person would be able to get the interest refund as it depends on each person's tax status, how much they earn each year, etc....so they just send the tax withholding to the govt as required by law. The govt determines if you get a refund only when you file the appropriate tax form(s) to get any type of tax withholding back. Like if you are maybe a U.S. citizen and you end up getting some of the tax money withheld by Uncle Sam refunded due to whatever tax law provision, credit, etc.

I don't file a Thai income tax return each year since I'm not earning any income from a job in Thailand...I only have my pensions/savings from the U.S. which is not taxable in Thailand. Since I don't earn income from a Thailand job, I don't have to file any Thai income tax return. You only need to file that form mentioned in the other thread unless you do have a job in Thailand and then you would just claim the interest earned as a deduction in your full Thai tax return filing.

It's almost like a tourist getting a VAT refund when they leave the country by filling out the simple form and having the required form from the store(s). Don't worry just because you are filing for a interest refund that you are going to be tagged for a full tax return/be put on the rolls of being expected to file a tax return every year as that is not the case.

Now in the thread I think there was one person who said he had to use another tax form (maybe a local revenue office thing...kinda like how some immigration offices do things a little different from other immigration offices), maybe one or two that said a tax ID was issued during the filing process, but for me there was no tax ID issued...I just had to fill out that simple one page tax form and include the identified attachments (i.e., the interest form/letter from the bank, copy of your passport, etc). It was easy.

And although the people who identified slightly different experiences/processes in the getting their refund, they still got their refund relatively easy within 2 to 6 weeks. You just gotta go file for it at your local tax revenue office....my office here in western Bangkok were super helpful. Piece of cake (knock on wood for my Jan 14 refund fling).

[jbrain]

^^ are there any other taxes that you know of that are possible to get refunded.

I once heard that as a foreigner, with no income, you're entitled to get the VAT paid on a car purchase or leasing refunded, but others told me it's a fairy tale.

[Pib]

I couldn't say regarding those tax questions.

Sent from my tablet

[Obb]

Can't really see where the catch is all the conditions are on their website.

Actually, no, all the conditions are not on their website. Nice try though.

[Obb]

Unless it has changed recently, the ~2.6% is on all balances. And they will not deduct the 15% below a certain amount of interest.

Indeed, one of the most annoying aspects to Thanachart is their Rates & Fees tables are in thai only.

what is the attraction of a Thanachart Ultra account? do they give a high interest rate return?

The interest rate is not high in comparison to other regular saving or fixed savings accounts...that is, 0.5% up to 30K baht, 2.0% from 30K to 1M baht, and 2.6% from 1M to 10M baht if I read their interest rate table right. However, but their web page says you can withdraw funds up to 2 times a month which you can't with a straight fixed account without losing interest...not clear if you do lose some interest/get hit with a interest penalty on the Ultra savings account if withdrawing frequently since it appears it also pays interest each month vs at maturity like most fixed accounts, and it's been granted tax exempt status...I guess that means they don't send 15% of the earned interest to the govt like on a standard fixed account (although you can get the 15% refund each year from the govt by filing a refund request with you local tax office). Note: above info is based on my interpretation of a not so great google transaction of the Ultra Savings webpage.

[Obb]

Let's pause to consider the brilliance of this post.

Why would you wanna maintain an account if you withdraw it to zero ?

[jbrain]

Let's pause to consider the brilliance of this post.

Why would you wanna maintain an account if you withdraw it to zero ?

Maybe you could give a brilliant answer to it ?

Let me try myself, when I have no money I also don't need a bank account or even a wallet.

[Pib]

I seriously doubt it...if they paid approx. 2.6% on any balance amount, say even below 30K baht and still allow up to two withdrawals a month half of Thailand would be flocking to sign up. The rates I mentioned below came from the Ultra Savings web page when clicking the rates link. Now, I have no doubt their promotional brochures and signs say 2.6% or up to 2.6%, but probably with a little asterisk and when looking at what the asterisk means in the fine print it then says the interest rate will depend on deposit balance amount. Basically, this saving account looks like one that varies automatically based on the balance...if the balance drops below the minimum amount to earn the 2.6%, then you automatically start earning what the interest rate is, say 2.0%, for a lower balance amount...and it could drop to only 0.5% when dropping below 30K baht. And as you balance increases above certain trigger balances you would earn a higher rate. I expect there is more fine print in the details, but depending on what a person is looking for in a savings program this could still be a very good savings program for them.

Unless it has changed recently, the ~2.6% is on all balances. And they will not deduct the 15% below a certain amount of interest.

Indeed, one of the most annoying aspects to Thanachart is their Rates & Fees tables are in thai only.

what is the attraction of a Thanachart Ultra account? do they give a high interest rate return?

The interest rate is not high in comparison to other regular saving or fixed savings accounts...that is, 0.5% up to 30K baht, 2.0% from 30K to 1M baht, and 2.6% from 1M to 10M baht if I read their interest rate table right. However, but their web page says you can withdraw funds up to 2 times a month which you can't with a straight fixed account without losing interest...not clear if you do lose some interest/get hit with a interest penalty on the Ultra savings account if withdrawing frequently since it appears it also pays interest each month vs at maturity like most fixed accounts, and it's been granted tax exempt status...I guess that means they don't send 15% of the earned interest to the govt like on a standard fixed account (although you can get the 15% refund each year from the govt by filing a refund request with you local tax office). Note: above info is based on my interpretation of a not so great google transaction of the Ultra Savings webpage.

[Obb]

Pib, I stand corrected. Your interest numbers are correct.

[Obb]

Keep it coming. You are a shining star.

Let's pause to consider the brilliance of this post.

Why would you wanna maintain an account if you withdraw it to zero ?

Maybe you could give a brilliant answer to it ?

Let me try myself, when I have no money I also don't need a bank account or even a wallet.

[elzach]

Can you open this or any acct at Thanachart with just a passport and a Tourist visa?

Obb this is a great post btw. Any other banks have any similar high-interest accounts?

[i claudius]

I have the account in question ,you can get your tax refunded ,every year in january you go to the local tax office with a letter from the bank ,take your passport and your savings book ,all pages photocopied ,i also take the wife ,the first time she spoke to the guy behind the desk(in banglamung next to the police station) he was very helpfull filled in the form and 3 weeks later we got a cheque from the govt for my tax refund ,every year now i just take the form i got the first year ,it has my code number on it,easy as pie ,but it does help if you have a smart Thai with you.

as a post script when i bank the govt cheque every year it never appears on my account for days ,when i asked the girl at the bank why ,she said it was to make sure it didnt bounce,seems the banks dont even trust the govt

[Obb]

My experience is that it varies by branch. I have opened two of these with a retirement visa. (If you move between regions of the country you will likely want to close one and open another to avoid fees.)

Very challenging bank to deal with as they are not set up to deal in English and do not seem to have put much emphasis on serving average joe foreigners. I chose them as they have ties to my home country and consistently had the best exchange rate. I think this account is competitive fee and rate-wise.

And it can be fun to provide their staff a chance to deal with a real-live Westerner.

Can you open this or any acct at Thanachart with just a passport and a Tourist visa?

 

Obb this is a great post btw. Any other banks have any similar high-interest accounts?

[Briggsy]

I think you'll find that a lot of bank transactions in Thailand require you to go to the specific bank in person.

Here is a personal example.

I had 2 savings accounts with the same bank for years, one at a central Bangkok branch, one at a provincial Chonburi branch. I decided to close the Bangkok account. I went to the Chonburi branch and was told the only way to close the Bangkok account was to go to the Bangkok branch in person. You might be led to think computers haven't made it to Thailand yet. I have other examples but I won't bore you.

It is a common feature of Thai banking.

[Obb]

No. You are spreading misinformation.Transfer or withdraw all of the money from the account you wish to close. That branch will close the account.

I think you'll find that a lot of bank transactions in Thailand require you to go to the specific bank in person. Here is a personal example. I had 2 savings accounts with the same bank for years, one at a central Bangkok branch, one at a provincial Chonburi branch. I decided to close the Bangkok account. I went to the Chonburi branch and was told the only way to close the Bangkok account was to go to the Bangkok branch in person. You might be led to think computers haven't made it to Thailand yet. I have other examples but I won't bore you. It is a common feature of Thai banking.

Edited September 10, 2013 by Obb

[Briggsy]

NO

I am not spreading misinformation.

Please read my post carefully. I was told the only way to close the account was to visit the account-holding branch.

In fact, rather than making the day-long trek to Bangkok, I simply withdrew all the money from the Bangkok a/c via online banking.

I think an apology is in order, Obb. Are you always this aggressive?

[i claudius]

My experience is that it varies by branch. I have opened two of these with a retirement visa. (If you move between regions of the country you will likely want to close one and open another to avoid fees.)

Very challenging bank to deal with as they are not set up to deal in English and do not seem to have put much emphasis on serving average joe foreigners. I chose them as they have ties to my home country and consistently had the best exchange rate. I think this account is competitive fee and rate-wise.

And it can be fun to provide their staff a chance to deal with a real-live Westerner.

Can you open this or any acct at Thanachart with just a passport and a Tourist visa?

Obb this is a great post btw. Any other banks have any similar high-interest accounts?

Dont know where you are ,but i bank at the tesco north Pattaya branch ,they speak english and are very clued up ,never ever had a problem there ,very helpfull.

[Obb]

Well, wrong information does seem to be misinformation. Mind you, without misinformation, TV would amount to about 50 posts and the founders and moderators would still be schlepping burgers. So you have that defence.

NO I am not spreading misinformation. Please read my post carefully. I was told the only way to close the account was to visit the account-holding branch. In fact, rather than making the day-long trek to Bangkok, I simply withdrew all the money from the Bangkok a/c via online banking. I think an apology is in order, Obb. Are you always this aggressive?

Edited September 11, 2013 by Obb

[Briggsy]

Apologise, Obb. There is even an emoticon specifically for the occasion.

[pancakeman]

<deleted> how am I supposed to do Ultrasaving with these ridiculous conditions!

I was planning saving 10baht per week for the 100 years and then buy a new motorbike....Thanachart have really put the kibosh on that plan.