How to safely invest 10 Mio. with fixed return?

[moonseeker]

Anybody with experience of "Fixed-Deposit", long-term. Can rates be negotiated somewhat at different banks, especially for higher amounts? What bank would you choose? Is the deposit Government insured? Are there any taxes that get deducted from the paid return/interest? Sorry, I have very limited banking experience here, but am selling a couple of condos and am not yet sure if I should keep the funds in Thailand (I live here) or re-repatriate.Yes, of course I will stop by the maon banks this week and get all info, but TV is such a great place to get educated and informed beforehand. Thank you. MS>

[Pdavies99]

3% on average in (Thai currency) bank deposit is your best, everything else has an investment risk, simple as that!

[Tywais]

One thing to consider if this is for long term and that is the Deposit Protection Agency limits per account will reduce to 1 million baht on 11 August 2016. Had been postponed for 4 years as it originally was to take effect in 2012. At that point you will need to spread the funds out across multiple accounts to limit exposure to 1 million protection in one account.

Current deposit protection

11 Aug 2012 – 10 Aug 2015 Baht 50 million

11 Aug 2015 – 10 Aug 2016 Baht 25 million

11 Aug 2016 – Onwards Baht 1 million

[monkeycountry]

KTB has 3.7% for 37 months, 3.3% for 14 months. Other banks something similar.

Withholding tax is 15% deducted by the bank. Depending on your tax situation, you can get the 15% back when filing a tax return to the rev. dept. The following year.

The government guarantees deposits up to a million I think (don't recall exact amount), so it makes sense to open several accounts.

You can negotiate interest when borrowing money, but have never heard of it when lending the bank money, so can't answer that one.

Btw, I believe there are already several threads on TV covering this matter, so you could check them

Edited September 29, 2013 by monkeycountry

[Tywais]

The government guarantees deposits up to a million I think (don't recall exact amount), so it makes sense to open several accounts.

<snip>

Btw, I believe there are already several threads on TV covering this matter, so you could check them

50 Million guarantee at the moment.

Another running pinned thread in the business section showing experiences with current savings accounts. May need to go towards the end to get the most up to date information. I have been able to negotiate an additional .25% on my last fixed deposit over the promotion at Bangkok Bank but have been a very long time customer. Your mileage may vary.

http://www.thaivisa.com/forum/topic/560837-bank-savings-interest-rates/

[SeaVisionBurma]

Moving to Business, Banking, Economy forum.

[meatboy]

moonseeker are you married [thai] if so split the 10mill.between you and your wife,between you your tax free allowance is around 130k interest each,tax will be deducted from fixed accs.at 15% so that works out at 19,500bht.which you can claim back unless you have any other thai earned income.you are allowed to claim back tax deducted up to 20k bht per yr.

go and check out the banks promotions there should be a few coming shortly and watch out staff dont try it on.

around 3% will take you to the limit but if its all in your name well youl have to grin and bare it.

if you are in a pickle over the amount you have i can help.[no i am not nigerian] i invest in cider

do you have any proof as to where the money came from it will help if you decide to take it out of the country.

also putting it offshore is getting more difficult some or in our case one bank told me they wont except money from thailand.

[Guderian]

This seems to be a good time to have a large wodge of money to invest as the Thai banks are working hard to try and get deposits so that they can get a slice of the government's 2 trillion Baht in borrowing to fund its infrastructure plans. I'd advise visiting the main banks and telling them how much you've got to invest and see what rate they will offer you. Another one to consider is LH Bank which has a branch near Home Pro upstairs in the Big C Extra mall in Pattaya Klang. They usually offer the best rates I've seen here.

[Rimmer]

K Bank offered me a four year government bond just last week that pays 4.1%, interest paid every six months, tax paid.

[Briggsy]

Whatever you decide, remember the golden rule.

"If you do not fully understand what you are investing in, do not invest in it."

[scobie redux]

Whatever you decide, remember the golden rule.

"If you do not fully understand what you are investing in, do not invest in it."

True, but we're talking here about a bog standard term deposit account in a bank. If people have limited understanding of those, then they're hardly likely to understand any other investment vehicle either, which means investment options run out pretty quickly.

To the OP, it is possible to negotiate better returns than those advertised on websites, if you have a decent amount to deposit. I've done it several times.

I seriously suggest you do some reading on investment generally though; that will teach you that there is ABSOLUTELY no such thing as investing without risk. Even money in cash is full of risk; indeed, cash deposits are the unsafest investment vehicle of all because the value of your saving is guaranteed to go down over time. No other investment vehicle provides such a fail-safe guarantee .

[moonseeker]

Thank you all for the constructive and informative answers. Have a great week. MS>

[Pib]

Withholding tax is 15% deducted by the bank. Depending on your tax situation, you can get the 15% back when filing a tax return to the rev. dept. The following year.

Just to clarify, when saying "filing a tax return" I think most people would think they have to file a full blown Thai tax return; that's not the case for obtaining a refund of the 15% withholding tax which applies to fixed accounts. Just one specific, simple form with a copy of your passport, the withholding tax document from the bank, and a copy of your passbook is required....takes 2 to 6 weeks to get the refund via check or cash. Varies for tax office to tax office servicing your area as to how long it takes them to process the refund and whether they pay the refund via check or cash. On my last refund they paid cash and it took 6 weeks, but my tax office said they had some policy and equipment issues which slowed them down this year.

[DRoseMJD]

Why do you have to go through a bank? You can get much higher return at fixed rates going through someone like http://www.fsplatinum.com

Edited September 30, 2013 by DRoseMJD

[SOTIRIOS]

.....I know of several placement programs starting as low as 3 million baht (100,000 USD) that can provide impressive returns

...your money is never touched....it stays in your name......if you like, I can introduce you to the compliance officer, an American...

[pete66]

.....I know of several placement programs starting as low as 3 million baht (100,000 USD) that can provide impressive returns

...your money is never touched....it stays in your name......if you like, I can introduce you to the compliance officer, an American...

that's the dodgiest looking post I've seen in a long time. A "placement program" with "impressive returns" where "your money is never touched"

I'd run as far away as possible from such an "opportunity" unless you want to be scammed out of your 10M.

Perhaps you should attend McWalen's investment seminar? He claims to know how you should invest your money .....

[pete66]

Why do you have to go through a bank? You can get much higher return at fixed rates going through someone like http://www.fsplatinum.com

Possibly because the OP said he wanted a fixed return and a 10-second review of fsplatinum.com website says:

"The choice of your investment will reflect your attitude to risk and the particular goals which you would like to achieve. Volatility of investment generally reflects the potential levels of returns"

Doh!

[12DrinkMore]

Withholding tax is 15% deducted by the bank. Depending on your tax situation, you can get the 15% back when filing a tax return to the rev. dept. The following year.

Just to clarify, when saying "filing a tax return" I think most people would think they have to file a full blown Thai tax return; that's not the case for obtaining a refund of the 15% withholding tax which applies to fixed accounts. Just one specific, simple form with a copy of your passport, the withholding tax document from the bank, and a copy of your passbook is required....takes 2 to 6 weeks to get the refund via check or cash. Varies for tax office to tax office servicing your area as to how long it takes them to process the refund and whether they pay the refund via check or cash. On my last refund they paid cash and it took 6 weeks, but my tax office said they had some policy and equipment issues which slowed them down this year.

Does not match my experience.

I have been doing this for four years. The full tax form is filled in by the nice girl at the tax office. Takes maybe 15 minutes. She calculated it all and last time gave me a big smile and said I was eligible to receive all the tax back.

A Great Service from the Thai Tax Office.

Try that in the UK......

[DRoseMJD]

Why do you have to go through a bank? You can get much higher return at fixed rates going through someone like http://www.fsplatinum.com

Possibly because the OP said he wanted a fixed return and a 10-second review of fsplatinum.com website says:

"The choice of your investment will reflect your attitude to risk and the particular goals which you would like to achieve. Volatility of investment generally reflects the potential levels of returns"

Doh!

... That in no way discredits what I said. Not sure what you are talking about, obviously with more risk involved higher returns can be found, but fixed income rates are obtainable for higher rates than you will find in any bank here. Not all of the information is on their site, but if you speak with someone there they can get into more specifics.

[oogster8]

Buying usa govt debt obligations is the best you gonna get as far as safety goes...................lol. Just stay away from advice from thai girls....................

[BlackJack]

.....I know of several placement programs starting as low as 3 million baht (100,000 USD) that can provide impressive returns

...your money is never touched....it stays in your name......if you like, I can introduce you to the compliance officer, an American...

that's the dodgiest looking post I've seen in a long time. A "placement program" with "impressive returns" where "your money is never touched"

I'd run as far away as possible from such an "opportunity" unless you want to be scammed out of your 10M.

Perhaps you should attend McWalen's investment seminar? He claims to know how you should invest your money .....

be vewy vewy carefwal

[BlackJack]

Why do you have to go through a bank? You can get much higher return at fixed rates going through someone like http://www.fsplatinum.com

Possibly because the OP said he wanted a fixed return and a 10-second review of fsplatinum.com website says:

"The choice of your investment will reflect your attitude to risk and the particular goals which you would like to achieve. Volatility of investment generally reflects the potential levels of returns"

Doh!

... That in no way discredits what I said. Not sure what you are talking about, obviously with more risk involved higher returns can be found, but fixed income rates are obtainable for higher rates than you will find in any bank here. Not all of the information is on their site, but if you speak with someone there they can get into more specifics.

so tell us what the rates and fees are

[BlackJack]

you can try Australian banks

5%

less 10% withholding tax =4.5%

but watch the exchange rate!!!!

thats what gets them everytime

[Pib]

Withholding tax is 15% deducted by the bank. Depending on your tax situation, you can get the 15% back when filing a tax return to the rev. dept. The following year.

Just to clarify, when saying "filing a tax return" I think most people would think they have to file a full blown Thai tax return; that's not the case for obtaining a refund of the 15% withholding tax which applies to fixed accounts. Just one specific, simple form with a copy of your passport, the withholding tax document from the bank, and a copy of your passbook is required....takes 2 to 6 weeks to get the refund via check or cash. Varies for tax office to tax office servicing your area as to how long it takes them to process the refund and whether they pay the refund via check or cash. On my last refund they paid cash and it took 6 weeks, but my tax office said they had some policy and equipment issues which slowed them down this year.

Does not match my experience.

I have been doing this for four years. The full tax form is filled in by the nice girl at the tax office. Takes maybe 15 minutes. She calculated it all and last time gave me a big smile and said I was eligible to receive all the tax back.

A Great Service from the Thai Tax Office.

Try that in the UK......

Seems to vary from revenue office to revenue office. TIT. My office here in my part of Bangkok just requires the Kor 10 one page form which is mostly filling in your name address, amounts withheld, places for your signature and the revenue office signature. The Link will open/download a Kor 10 form you can fill-in and printout...but it's in Thai. Revenue office also helped me fill it out....easy process.

[DRoseMJD]

One for example is a 5 year fixed rate lump sum, 100% principle protected, 4.25% interest rate, policy fee only $7 a month, tax exempt structure. There are plenty of other options as well, can contact me for more information.

[Pdavies99]

So perhaps someone will tell me exactly where the Pattaya tax Office is please for refunds etc?

Thanks

[falang07]

Just do not forget what happened in Cyprus. If you keep a big amount in the bank, the rules can change overnight in case of a serious trouble and the guarantee that should have been lowered to 1 million in 2012 and was extended till 2016 can be suddenly changed anytime, and leave you with a worthless paper with the bank name on it. There are no rules for serious situations, so again, just learn from the real case that happened in Cyprus and keep in mind that no bank has more than about 10% of all deposits available for pay out, so in case real shit happens banks are safe only for small deposits.

[falang07]

So to answer the question "How to safely invest 10 Mio. with fixed return?", be wise and split it over several banks.

[DavidMavec]

Regarding the fixed deposit long term approx. 3% interest bank investments, are most of these possible with a tourist visa? Does anybody know?

[Tywais]

So perhaps someone will tell me exactly where the Pattaya tax Office is please for refunds etc?

Thanks

All offices in Thailand can be found on this map. Just click on your region and narrow it down from there.

http://www.rd.go.th/publish/38156.0.html