Opening an offshore accout to avoid charges withdrawing from thai atms

[snake24]

You know there are tons of charges if you wish to withdraw money from a thai atm and you don't have a thai bank account. I don't live in thailand but i do visit it occasionally so opening a bank a/c in thailand wouldn't be feasible. Firstly there is a 150bht charge on the thai bank's side. My own bank charges me an additional $5 for withdrawing money to an atm of another bank so i get charged $5 + 150bht for administrative charges. On Top of that the exchange rates quoted by visa are pretty bad i think it's an additional 1 or 2 % charges or something like that.

Anyway i understand that there is a bank's atm in thailand that doesn't charge that 150 surcharge it's called AEON is that correct?

Anyway i was told by someone on another forum how he has an offshore bank account in which he doesn't need to pay admin charges and he gets refunded 150bht so he can withdraw money from any atm in thailand from his offshore account and gets the money reimbursed and on top of that he doesn't get the lousy rates by visa but gets the market rates. When i asked him the name of the bank of his offshore account he totally ignored me probably to keep a good thing from me.

Is there really such a thing? Would the offshore bank account be from the virgin islands or maybe some swiss bank? It really sounds attractive and would aid me greatly as i do travel to various countries sometimes and would save me the hassle of changing money before flying off.

[Naam]

Would the offshore bank account be from the virgin islands or maybe some swiss bank?

you can bet your sweet butt that it would be neither!

[snake24]

Would the offshore bank account be from the virgin islands or maybe some swiss bank?

you can bet your sweet butt that it would be neither!

ok but still hoping someone knows the answers to my questions.

[Gsxrnz]

You travel here once a year right? You're unclear what currency the offshore bank account is held in - I assume Thai baht? All sounds like too much trouble for your annual hols. And believe me, when banks move currencies, there is always a margin made, so I think your friend is probably exaggerating somewhat on the supposed benefits.

Your best bet is open a Thai bank account. Total cost say 500B for the ATM card and a 150 one off admin fee.

TT money to your Thai account at a time and exchange rate that is suitable to you - your domestic bank will have a charge of say $20. Or if you have online banking, you may have a lower fee.

Or, bring cash with you and deposit it to your Thai account.

There is no minimum amount you need to keep in your Thai account, so no need for dead money.

If you only use your bank's ATM's, zero cost. No annual account fees.

Your total annual cost for holidaying in Thailand (after you open your account) can be zero, or $20..........up to you.

[Pib]

Just get yourself a no foreign transaction fee debit card which means the bank issuing the card does not charge any flat-fee and/or add a 1 to 3% exchange rate fee like apparently your current bank does. It's not Visa hitting you with these fees; it's the bank that issued the card is applying the fees. Well, Visa does apply a 1% foreign transaction fee but it's totally up to your card issuing bank if they pass that fee along to you or absorb it. Your bank is the bad guy; not Visa. If you are a U.S. citizen just get yourself a Schwab Bank debit card, which is a no foreign transaction fee, absorbs the 1% Visa fee, and reimburses ATM charges. However, it's best to use an AEON ATM to avoid an ATM fee which causes your bank to spend money on you/reimburse you...they may get tired of that after a while depending on how much they are spending to keep you as a customer. AEON is a Japanese company operating in Thailand and don't charge the Bt150 foreign Visa card fee like Thai banks do.

[sas_cars]

Just get yourself a no foreign transaction fee debit card which means the bank issuing the card does not charge any flat-fee and/or add a 1 to 3% exchange rate fee like apparently your current bank does. It's not Visa hitting you with these fees; it's the bank that issued the card is applying the fees. Well, Visa does apply a 1% foreign transaction fee but it's totally up to your card issuing bank if they pass that fee along to you or absorb it. Your bank is the bad guy; not Visa. If you are a U.S. citizen just get yourself a Schwab Bank debit card, which is a no foreign transaction fee, absorbs the 1% Visa fee, and reimburses ATM charges. However, it's best to use an AEON ATM to avoid an ATM fee which causes your bank to spend money on you/reimburse you...they may get tired of that after a while depending on how much they are spending to keep you as a customer. AEON is a Japanese company operating in Thailand and don't charge the Bt150 foreign Visa card fee like Thai banks do.

Pib, you mean that Visa charges 1% from it's daily published rates to the bank? So effectively it's the daily publised rate + 1 % if the bank doesn't absorb it and just pass it on to the customer?

[Pib]

There is no minimum amount you need to keep in your Thai account, so no need for dead money.

While you can open a Thai bank account with only a Bt500 deposit, if after one year of inactivity and less than Bt2,000 in the account the bank will start charging a Bt50/month fee until the account is empty and then the account is closed. Just for example, see the first entry in the Bangkok Bank Link talking about the account inactivity fee....this is typical across all Thai banks...it's just not a Bangkok Bank thing...I only provided the Bangkok Bank link since their website has excellent info in English.

[Pib]

Just get yourself a no foreign transaction fee debit card which means the bank issuing the card does not charge any flat-fee and/or add a 1 to 3% exchange rate fee like apparently your current bank does. It's not Visa hitting you with these fees; it's the bank that issued the card is applying the fees. Well, Visa does apply a 1% foreign transaction fee but it's totally up to your card issuing bank if they pass that fee along to you or absorb it. Your bank is the bad guy; not Visa. If you are a U.S. citizen just get yourself a Schwab Bank debit card, which is a no foreign transaction fee, absorbs the 1% Visa fee, and reimburses ATM charges. However, it's best to use an AEON ATM to avoid an ATM fee which causes your bank to spend money on you/reimburse you...they may get tired of that after a while depending on how much they are spending to keep you as a customer. AEON is a Japanese company operating in Thailand and don't charge the Bt150 foreign Visa card fee like Thai banks do.

Pib, you mean that Visa charges 1% from it's daily published rates to the bank? So effectively it's the daily publised rate + 1 % if the bank doesn't absorb it and just pass it on to the customer?

The rate Visa shows on its exchange rate page is the full/zero % fee rate Visa rate when 0% is entered--it assumes your card issuing bank does not charge any fee and absorbs the Visa fee. When a transaction occurs, like a ATM withdrawal or Point of Sale transaction, the full/zero % rate is transmitted to the card issuing bank along with the Visa 1% foreign transaction fee. Actually, I've read in places the fee can range from 0.15% to 1% depending on the contract between Visa and the card issuing bank/company. For MasterCard I think the fee range is 0.2% to 1%. Then it's up to the card issuing bank as to whether they pass that fee along to you or absorb it and how they reflect that in your account...but Visa prefers the fee be broken out. But when the bank just mixes the fee into "one" charge hitting your account it can give the impression that's it was Visa that gave them the crappy exchange rate, when in fact it was probably the additive fees from the bank and/or they didn't absorb the 1% Visa fee.

If the bank/card company passes it along to you, it can either appear as a separate charge or the bank can just reduce the exchange rate by approx. 1%...either way the bank passed the fee along to you. It's going to depend on the bank/card company as to how they process and show the charge on your account. The Visa exchange rate page does allow the entry of any "percentage" fee, 0 thru 5%, your card issuing bank may apply (or not absorb such as the foreign transaction Visa fee) so you can see what the effective exchange rate will be after any fee dust settles.

I've got a couple of no foreign transaction fee Visa debit cards and whenever an ATM withdrawal hits my bank accounts, the exchange rate used matches the full/zero % Visa rate to the second or third decimal point because my banks absorb the Visa fee. When you see card issuing banks/companies say their cards apply a 1% foreign transaction fee that is their way of saying they pass along the Visa/MasterCard 1% foreign transaction fee to you. When you see them say their cards apply more than 1% then they are just pocketing profit...after they pay Visa the 1% fee, the additional fee they charged is just bank profit.

Edit: If your Visa card is issued by a European bank, be sure to click on the sublink at the bottom of the Visa exchange rate page link I gave above as the Visa exchange rates for cards issued by European banks is a little different.

Edited August 28, 2013 by Pib

[snake24]

You travel here once a year right? You're unclear what currency the offshore bank account is held in - I assume Thai baht? All sounds like too much trouble for your annual hols. And believe me, when banks move currencies, there is always a margin made, so I think your friend is probably exaggerating somewhat on the supposed benefits.

Your best bet is open a Thai bank account. Total cost say 500B for the ATM card and a 150 one off admin fee.

TT money to your Thai account at a time and exchange rate that is suitable to you - your domestic bank will have a charge of say $20. Or if you have online banking, you may have a lower fee.

Or, bring cash with you and deposit it to your Thai account.

There is no minimum amount you need to keep in your Thai account, so no need for dead money.

If you only use your bank's ATM's, zero cost. No annual account fees.

Your total annual cost for holidaying in Thailand (after you open your account) can be zero, or $20..........up to you. alt=coffee1.gif width=32 height=24>

Just get yourself a no foreign transaction fee debit card which means the bank issuing the card does not charge any flat-fee and/or add a 1 to 3% exchange rate fee like apparently your current bank does. It's not Visa hitting you with these fees; it's the bank that issued the card is applying the fees. Well, Visa does apply a 1% foreign transaction fee but it's totally up to your card issuing bank if they pass that fee along to you or absorb it. Your bank is the bad guy; not Visa. If you are a U.S. citizen just get yourself a Schwab Bank debit card, which is a no foreign transaction fee, absorbs the 1% Visa fee, and reimburses ATM charges. However, it's best to use an AEON ATM to avoid an ATM fee which causes your bank to spend money on you/reimburse you...they may get tired of that after a while depending on how much they are spending to keep you as a customer. AEON is a Japanese company operating in Thailand and don't charge the Bt150 foreign Visa card fee like Thai banks do.

There is no minimum amount you need to keep in your Thai account, so no need for dead money.

While you can open a Thai bank account with only a Bt500 deposit, if after one year of inactivity and less than Bt2,000 in the account the bank will start charging a Bt50/month fee until the account is empty and then the account is closed. Just for example, see the first entry in the Bangkok Bank Link talking about the account inactivity fee....this is typical across all Thai banks...it's just not a Bangkok Bank thing...I only provided the Bangkok Bank link since their website has excellent info in English.

To pib thanks for this information in any case it wouldn't make any sense for me to even open a thai bank account. Totally not worth it and the charges on top of that.

My bank account is a singapore one posb owned by dbs bank and i have a feeling they don't have such a debit card should try to call them to ask. When you told me that it is the bank that screws you my heart sank cos my bank account is a singaporean one and if you know anything about singapore everything in there is designed to screw the citizens trying to squeeze out every single cent from them. Let's see the current exchange rate offered by money changers 1sgd = 24.5 upwards but i am sure the exchange rate i will be getting from the bank will be below 24 around 23.8 region.

[Jiu-Jitsu]

Isn't there a bank that allows free withdrawals within the region(Singapore/Malaysia/Thailand)? Don't remember the name, but I saw one of the ATMs in Pattaya. Perhaps if you ask on the Pattaya Forum you can get the name. One ATM is near the corner on Pattaya Tai and Sai Song.

If it turns out to be the case, then perhaps you can open a corresponding account in Singapore(if that is from whence you hail).

[snake24]

here are the additional stuff on my card

1. There's a charge of S$5 per cash withdrawal on overseas Visa/PLUS ATMs. You will enjoy a preferential flat service fee of S$2 if you use your Debit Card at the ATMs of Bank Danamon (Indonesia).
2. Cash withdrawal at DBS Hong Kong and DBS Taiwan ATMs will be free of charge.
3. The amount withdrawn in US dollars shall be converted to Singapore dollars on the date of conversion. The amount withdrawn in foreign currency other than US Dollars will be converted into US dollars before being converted into Singapore dollars. All conversions shall be based on the prevailing wholesale interbank rates or the government-mandated rate, as shall be determined by the respective card associations. The rate used for the conversion may be different from the rate in effect on the date of the transaction due to market fluctuation.
4. The amount withdrawn in foreign currency at overseas ATMs or purchases made in foreign currency at Visa terminals are subject to a charge imposed by the respective card associations, either as a reimbursement charge representing the charge imposed on us or as a direct charge to you. An administrative fee of 2.0% of the foreign currency withdrawal or transaction amount for services provided or actions taken by us in relation to such foreign currency transactions shall be payable by you and debited to your Card Account.

[snake24]

Isn't there a bank that allows free withdrawals within the region(Singapore/Malaysia/Thailand)? Don't remember the name, but I saw one of the ATMs in Pattaya. Perhaps if you ask on the Pattaya Forum you can get the name. One ATM is near the corner on Pattaya Tai and Sai Song.

If it turns out to be the case, then perhaps you can open a corresponding account in Singapore(if that is from whence you hail).

Just pattaya?

[Pib]

To pib thanks for this information in any case it wouldn't make any sense for me to even open a thai bank account. Totally not worth it and the charges on top of that.

My bank account is a singapore one posb owned by dbs bank and i have a feeling they don't have such a debit card should try to call them to ask. When you told me that it is the bank that screws you my heart sank cos my bank account is a singaporean one and if you know anything about singapore everything in there is designed to screw the citizens trying to squeeze out every single cent from them. Let's see the current exchange rate offered by money changers 1sgd = 24.5 upwards but i am sure the exchange rate i will be getting from the bank will be below 24 around 23.8 region.

No shortage of evil, fee hungry banks in the world...but those banks just call it business/profits.

[Jiu-Jitsu]

Isn't there a bank that allows free withdrawals within the region(Singapore/Malaysia/Thailand)? Don't remember the name, but I saw one of the ATMs in Pattaya. Perhaps if you ask on the Pattaya Forum you can get the name. One ATM is near the corner on Pattaya Tai and Sai Song.

If it turns out to be the case, then perhaps you can open a corresponding account in Singapore(if that is from whence you hail).

Just pattaya?

I have no idea. The name of the bank is CIMB Thai. Take a look for yourself.

Regional ATM Service

We are pleased to announce our new cross-border ATM facility linking Malaysia, Singapore, Indonesia and Thailand. Enjoy the convenience of our network of over 3,750 CIMB ATMs when you travel abroad to these four countries.

Now you can view your account balances and also withdraw your money from any CIMB Bank, CIMB Niaga and CIMB Thai ATM machine for FREE. Don't forget to activate your ATM card for overseas usage.

All customers holding CIMB ATM cards are eligible for this service.

[Jiu-Jitsu]

here are the additional stuff on my card

1. There's a charge of S$5 per cash withdrawal on overseas Visa/PLUS ATMs. You will enjoy a preferential flat service fee of S$2 if you use your Debit Card at the ATMs of Bank Danamon (Indonesia).
2. Cash withdrawal at DBS Hong Kong and DBS Taiwan ATMs will be free of charge.
3. The amount withdrawn in US dollars shall be converted to Singapore dollars on the date of conversion. The amount withdrawn in foreign currency other than US Dollars will be converted into US dollars before being converted into Singapore dollars. All conversions shall be based on the prevailing wholesale interbank rates or the government-mandated rate, as shall be determined by the respective card associations. The rate used for the conversion may be different from the rate in effect on the date of the transaction due to market fluctuation.
4. The amount withdrawn in foreign currency at overseas ATMs or purchases made in foreign currency at Visa terminals are subject to a charge imposed by the respective card associations, either as a reimbursement charge representing the charge imposed on us or as a direct charge to you. An administrative fee of 2.0% of the foreign currency withdrawal or transaction amount for services provided or actions taken by us in relation to such foreign currency transactions shall be payable by you and debited to your Card Account.

That's a crap card.

[snake24]

Isn't there a bank that allows free withdrawals within the region(Singapore/Malaysia/Thailand)? Don't remember the name, but I saw one of the ATMs in Pattaya. Perhaps if you ask on the Pattaya Forum you can get the name. One ATM is near the corner on Pattaya Tai and Sai Song.

If it turns out to be the case, then perhaps you can open a corresponding account in Singapore(if that is from whence you hail).

Just pattaya?

I have no idea. The name of the bank is CIMB Thai. Take a look for yourself.

Regional ATM Service

We are pleased to announce our new cross-border ATM facility linking Malaysia, Singapore, Indonesia and Thailand. Enjoy the convenience of our network of over 3,750 CIMB ATMs when you travel abroad to these four countries.

Now you can view your account balances and also withdraw your money from any CIMB Bank, CIMB Niaga and CIMB Thai ATM machine for FREE. Don't forget to activate your ATM card for overseas usage.

All customers holding CIMB ATM cards are eligible for this service.

From the looks of things i will need to open a bank account with that bank. Well then it isn't worth the problem. Probably take pibbs advice and call my bank and see if they have that type of debit card available.

[Pib]

Since they charge such high fees already I would be greatly surprised if they offer a no foreign transaction fee card, except maybe for a premier type account that would probably require a gazillion dollars in deposits.

[Jiu-Jitsu]

Are you just wasting our time??

You started a thread on the premise that you wanted to open an offshore account and now you are telling us that opening an account is "not worth the problem".

I have multiple bank accounts in the UK, as they each have their USP. If it doesn't cost anything to maintain the account, then why not.

Opening an account in Singapore is a lot easier. CIMB fees and charges

Edited August 28, 2013 by Jiu-Jitsu

[snake24]

Since they charge such high fees already I would be greatly surprised if they offer a no foreign transaction fee card, except maybe for a premier type account that would probably require a gazillion dollars in deposits.

True do you have any knowledge of opening offshore account?

[Jiu-Jitsu]

Since they charge such high fees already I would be greatly surprised if they offer a no foreign transaction fee card, except maybe for a premier type account that would probably require a gazillion dollars in deposits.

True do you have any knowledge of opening offshore account?

Seems you only hear what you want to hear.... so if you insist: The Schwab One International® account

[Pib]

Since they charge such high fees already I would be greatly surprised if they offer a no foreign transaction fee card, except maybe for a premier type account that would probably require a gazillion dollars in deposits.

True do you have any knowledge of opening offshore account?

Seems you only hear what you want to hear.... so if you insist: The Schwab One International® account

Schwab One International seems to get high ratings...I think it requires a $10K USD opening deposit...but it does come with a no foreign transaction fee Visa debit card. I don't have such an international account since I'm able to have U.S. Schwab brokerage/bank account, but I've seen several posts of people who do have the Schwab International Account and they seem to like it.

[Pib]

Since they charge such high fees already I would be greatly surprised if they offer a no foreign transaction fee card, except maybe for a premier type account that would probably require a gazillion dollars in deposits.

True do you have any knowledge of opening offshore account?

I've never opened one...just have my U.S. and Thai accounts. But you may want to check into the Schwab International Account. It's a brokerage account but comes with a no foreign transaction fee Visa debit card linked to the brokerage account.

[stoli]

Schwab is the company that you were looking for. As stated, I checked from here about opening an account, and it did require that you deposit $10,000 US and make occasional trades to keep the account open. If you live in the states, it is relatively pain free to open one of their accounts and use it here, and they reimburse all ATM fees.

[snake24]

Wow this account sounds cool. I am sure it works in many countries. (i have not read anything from the site)

[snake24]

Since they charge such high fees already I would be greatly surprised if they offer a no foreign transaction fee card, except maybe for a premier type account that would probably require a gazillion dollars in deposits.

True do you have any knowledge of opening offshore account?

Seems you only hear what you want to hear.... so if you insist: The Schwab One International® account

Schwab One International seems to get high ratings...I think it requires a $10K USD opening deposit...but it does come with a no foreign transaction fee Visa debit card. I don't have such an international account since I'm able to have U.S. Schwab brokerage/bank account, but I've seen several posts of people who do have the Schwab International Account and they seem to like it.

I realised they don't give the rates if you decide to withdraw money from various countries.

[Jiu-Jitsu]

Since they charge such high fees already I would be greatly surprised if they offer a no foreign transaction fee card, except maybe for a premier type account that would probably require a gazillion dollars in deposits.

True do you have any knowledge of opening offshore account?

Seems you only hear what you want to hear.... so if you insist: The Schwab One International® account

Schwab One International seems to get high ratings...I think it requires a $10K USD opening deposit...but it does come with a no foreign transaction fee Visa debit card. I don't have such an international account since I'm able to have U.S. Schwab brokerage/bank account, but I've seen several posts of people who do have the Schwab International Account and they seem to like it.

I realised they don't give the rates if you decide to withdraw money from various countries.

The rates are here

[snake24]

wow so it follows visa without any charges.

[dighambara]

You travel here once a year right? You're unclear what currency the offshore bank account is held in - I assume Thai baht? All sounds like too much trouble for your annual hols. And believe me, when banks move currencies, there is always a margin made, so I think your friend is probably exaggerating somewhat on the supposed benefits.

Your best bet is open a Thai bank account. Total cost say 500B for the ATM card and a 150 one off admin fee.

TT money to your Thai account at a time and exchange rate that is suitable to you - your domestic bank will have a charge of say $20. Or if you have online banking, you may have a lower fee.

Or, bring cash with you and deposit it to your Thai account.

There is no minimum amount you need to keep in your Thai account, so no need for dead money.

If you only use your bank's ATM's, zero cost. No annual account fees.

Your total annual cost for holidaying in Thailand (after you open your account) can be zero, or $20..........up to you.

Open a Bangkok Bank Deposit Account and vreate a permanent Direct Deposit to Bangkok Bank New York. The ATM card will cost 200 Baht and is useable at any Bangkok Bank in Thailand for free. There are admin fees, but they are negligible.

[Pib]

wow so it follows visa without any charges.

Yeap, or said another way, "They don't charge additional fees and absorb the 1% Visa fee." Remember, it's not Visa or MasterCard giving a person the shaft on exchange rates as their exchange rates are usually plus or minus a few stang of the Thai bank TT Buying Rate which is about the best exchange rate the common man can get when transferring funds to Thailand. The one giving your the shaft is your own home country bank/card company.

For example on exchange rates...from looking at the Visa, MC, and another website to determine rates at this point in time on 29Aug/Thursday morning/9:45am, the following rates apply

Average Thai bank TT Buying Rate: 32.07 Baht/USD

Visa Rate: 31.95

MasterCard Rate: 31.97

Note: since card exchange rates which are set "once" for an entire day vs Thai bank TT Buying Rates which respond much faster & change several times per day based on the FX market, card rates usually lag a day or two behind FX markets since the card companies only set "one rate for a 24 hr period" and apparently want to get a better average of what their 24 hr rate should be....probably not smart to base your 24 hr rate on say a FX rate occurring at a certain time during day if that certain FX rate was just a brief spike in the FX market...and of course vice-versa for a brief dip in FX rates. I have observed that when the FX market rates are fairly stable (not this highly variable baht to USD rate we've been seeing over the last few weeks) that the Visa rate is very, very close to the TT Buying Rate...within a few stang...or actually beats the TT Buying Rate. And when you consider with a no foreign transaction fee debit card and using an AEON ATM to get your money "immeidiately" in hand with absolutely no wire transfer fees such a deal is hard to beat. Will be interesting to see what the new Visa rate coming out in another hour is...since yesterday's and today's TT Buying Rates have been very close to each other and considering the day or two lag in card rates that today's Visa exchange rate for the next 24 hours will be something over 32 baht/USD and real close to the average TT Buying Rate of 32.07. We'll see in about another hour come 11am Thailand time, which is midnight U.S. East Coast Time when the rates update for the next 24 hours. I think the above MC rate carries through until around 11pm tonight Thailand time.

Edited August 29, 2013 by Pib

[Pib]

Yeap, now after 11am....Visa rate 32.11...better than the TT Buying Rate.

Sent from my Samsung S4 (GT-I9500)