How to safely invest 10 Mio. with fixed return?

[Kimera]

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.

Just to clear up a point, if I am on a retirement visa with a fixed deposit account that tax has been taken from, then I can fill in a tax form and have the tax money returned, no work permit, no nothing..

[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.

Just to clear up a point, if I am on a retirement visa with a fixed deposit account that tax has been taken from, then I can fill in a tax form and have the tax money returned, no work permit, no nothing..

Yeap...yeap...you'll get a refund...no work permit required. I'm on a retirement visa/extension of stay with fixed deposit account.

[rosst]

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....................

IMHO probably not, the financial system in the US is in serious trouble, I think Thailand is looking better. LOL

[jbrain]

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

Ever taken in consideration why it was postponed ?

Could it be because they are in need of money ? You know in Thailand everything is fine until the day that it explodes, and not a minute earlier.

[jbrain]

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....................

IMHO probably not, the financial system in the US is in serious trouble, I think Thailand is looking better. LOL

Keyword is " looking " .

[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

Ever taken in consideration why it was postponed ?

Could it be because they are in need of money ? You know in Thailand everything is fine until the day that it explodes, and not a minute earlier.

Part of it is due to ASEAN and the other from these statements below.

"Mr. Kittiratt said that the extension of the protection service is also needed to boost the confidence of depositors in Thai financial institutions while the debt crisis in Europe remains unresolved."

http://www.pattayamail.com/business/cabinet-approved-extension-of-thb50mil-deposit-protection-by-3-more-years-14065

---------------------------------------- More -------------------------------------

The government plans to keep the bank deposit guarantee at Bt50 million per person per bank, instead of lowering it to Bt1 million on August 11 as planned, due the global economic uncertainty, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said.

He said the ministry would send the proposal to the Cabinet for consideration soon in order to enact a decree to extend the Bt50-million deposit guarantee.

"The European financial volatility is shaking the confidence of depositors, and it might not be the right time to reduce the protection. Therefore, we believe the deposit guarantee of Bt50 million is safe and will restore the confidence of depositors," he said.

The Nation

[jbrain]

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

Ever taken in consideration why it was postponed ?

Could it be because they are in need of money ? You know in Thailand everything is fine until the day that it explodes, and not a minute earlier.

Part of it is due to ASEAN and the other from these statements below.

"Mr. Kittiratt said that the extension of the protection service is also needed to boost the confidence of depositors in Thai financial institutions while the debt crisis in Europe remains unresolved."

http://www.pattayamail.com/business/cabinet-approved-extension-of-thb50mil-deposit-protection-by-3-more-years-14065

---------------------------------------- More -------------------------------------

The government plans to keep the bank deposit guarantee at Bt50 million per person per bank, instead of lowering it to Bt1 million on August 11 as planned, due the global economic uncertainty, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said.

He said the ministry would send the proposal to the Cabinet for consideration soon in order to enact a decree to extend the Bt50-million deposit guarantee.

"The European financial volatility is shaking the confidence of depositors, and it might not be the right time to reduce the protection. Therefore, we believe the deposit guarantee of Bt50 million is safe and will restore the confidence of depositors," he said.

The Nation

I agree that at current times it's not a good time to have money deposited in EU or US, but if it's all that good in Thailand there would be no need to give extra insurances, the money would flow in by itself because every one want his money out of the EU and US where the interest is zilch and the risk is high.

[FalangBaa]

There's no such thing as a "safe investment" in Thailand. That's equivalent to investing in the Wild West. As as a foreigner in Thailand, you have virtually no rights at all. Besides, if you have 10 million pounds (or is it dollars?) to invest, you'd be better off looking at Singapore or investing in a Western country.

[falang07]

I suppose we are speaking about 10 million THB only

[yoshiwara]

If you are really worried about deposit protection in Thailand, the odds are that if such a situation arises, the baht will likely have collapsed, so better to anticipate the odds of this happening if considering whether/where to invest one's 10 million baht equivalent.

[DavidMavec]

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

I'm sure somebody knows the answer to my question... thanks :-).

[wanderluster]

as other TV posters have stated,, if you give me all your money iw ill give you you 50% INTEREST PER yr...

i have same situation as you,, my advice,,, dont trust a single thing you get from this site,, way too many perfect people living perfect lives,, and in thailand???

unless you piss away this kind of money then do your own homework,, go to the banks,, ask the appropriate questions,, go to the stock market investment advisors,, but be wary

but trusting a farong in this country,, well you might as well believe my opening line

if it sounds to good it aint

thailand = scam city/country

if you have this kindof money,, you should not be stupid,, slow down and think,, verify everything,, payfor proper translations

i will not even say what i do,,, your homework,,, just do it,, be smart as if you were in your own country,, 1% in not worth possibly losing all

but again i do have a goldmine that is going to be a major producer next month.... bs

[socrates28]

Interesting thread - good solid info here (most of it)

[tingtongfarang]

Last week i tried 2 banks for FCD accounts both of which i have savings accounts already, Hoping this would be negotiable but the biggest problem i found was finding bank staff who had enough english and would just give printouts of the websites which i had already read,

Reality was non of them knew what a foreign currency deposit account was until i some details were explained....2015 is coming?

Edited September 30, 2013 by tingtongfarang

[MeowBundit]

10M your average profit after tax deduction will be about 300k per year.

[CaptainPeacock]

... 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 .

This is NOT necessarily true...

If you sent funds to Thailand at good exchange rates and are only getting around 2% interest its still better than investing in financial instruments here (Thai) that promise the earth but in reality you lose money.

Case in point. I would send UK sterling when it was around 70/80 to the pound. Deposit it the government housing bank, and yet friends would laugh and say that I'm getting a measly 2%...why not invest in Thai stocks etc...

Well let me tell you, I have known a so called expert in this field, hes lived here for over twenty years and plays the SET, in that time some years he has made a little, however over the long haul he has LOST!

[ericthai]

I would look at moving it out of Thailand. I sold my share holdings in one Thai company and put it in a program in the USA which I'm getting short term (12 months) at 5.25% Take your time and look around there are better offers out there than what banks are offering. You need to be careful and check things out. Make sure it secure. There are some good opportunities if you take you time and look.

[lannarebirth]

I don't have any advice as to what you should do with your money, but a 10 million Baht term deposit may make you eligible for an Investment Visa if that is of any interest to you:

http://www.thaivisa.com/investment-visa.html

[meatboy]

as other TV posters have stated,, if you give me all your money iw ill give you you 50% INTEREST PER yr...

i have same situation as you,, my advice,,, dont trust a single thing you get from this site,, way too many perfect people living perfect lives,, and in thailand???

unless you piss away this kind of money then do your own homework,, go to the banks,, ask the appropriate questions,, go to the stock market investment advisors,, but be wary

but trusting a farong in this country,, well you might as well believe my opening line

if it sounds to good it aint

thailand = scam city/country

if you have this kindof money,, you should not be stupid,, slow down and think,, verify everything,, payfor proper translations

i will not even say what i do,,, your homework,,, just do it,, be smart as if you were in your own country,, 1% in not worth possibly losing all

but again i do have a goldmine that is going to be a major producer next month.... bs

would that goldmine be a bar girl

[scobie redux]

... 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 .

This is NOT necessarily true...

If you sent funds to Thailand at good exchange rates and are only getting around 2% interest its still better than investing in financial instruments here (Thai) that promise the earth but in reality you lose money.

Case in point. I would send UK sterling when it was around 70/80 to the pound. Deposit it the government housing bank, and yet friends would laugh and say that I'm getting a measly 2%...why not invest in Thai stocks etc...

Well let me tell you, I have known a so called expert in this field, hes lived here for over twenty years and plays the SET, in that time some years he has made a little, however over the long haul he has LOST!

You misunderstand the point I made.

Yes, money invested in shares anywhere - in Thailand or around the world - can lose. Similarly they can gain.

But money invested in cash deposits - ANYWHERE in the world - is guaranteed to lose every single time because cash interest rates are always lower than inflation.

Your point about sending money at favourable exchange rates is irrelevant; it adds another investment vehicle (currency) into the mix.

[Muhendis]

The only thing I would add is to watch out for the terms of the interest rate. Bangkok Bank have a deposit account that looks attractive at 3.25% but, written in Thai, this is only for six months after which it reverts to the basic 0.1%. There are other banks that offer slightly less but for the whole year. You will be taxed at source on the interest (7%).

[Naam]

But money invested in cash deposits - ANYWHERE in the world - is guaranteed to lose every single time because cash interest rates are always lower than inflation.

an incorrect generalising statement. if one locks long term in any high yielding asset (including cash) during a period of high inflation the results are excellent positive yields.

good examples are GBP and USD end 70s beginning 80s. those with long term fixed deposits and long Gilts or UST minted money.

[Naam]

The only thing I would add is to watch out for the terms of the interest rate. Bangkok Bank have a deposit account that looks attractive at 3.25% but, written in Thai, this is only for six months after which it reverts to the basic 0.1%. There are other banks that offer slightly less but for the whole year. You will be taxed at source on the interest (7%).

tax at source is 15%.

[Muhendis]

Ooops! Thanks Naam

[crazykopite]

Not wishing to sound glum but does this Government guarantee cover farang accounts after all we are living in AMAZING THAILAND anything can happen as it seems rules are made up as they go along I would take a flight to Singa's and open an offshore with HSBC and have the purchasers put the funds direct into that account I did this and had no problems.

[Pib]

The only thing I would add is to watch out for the terms of the interest rate. Bangkok Bank have a deposit account that looks attractive at 3.25% but, written in Thai, this is only for six months after which it reverts to the basic 0.1%. There are other banks that offer slightly less but for the whole year. You will be taxed at source on the interest (7%).

Maybe you could point out the deposit account you are talking about on the Bangkok Bank web site which has excellent information in both Thai and English. The only deposit account I'm aware of by Bangkok Bank that will pay 3.25%pa is their current promotion on a 15 month fixed term saving account (which I signed up for last month...after by most recent 7 month fixed term account matured). The 15 month fixed account pays 3.25%pa for the entire 15 months...after it matures in 15 month if a person don't go in an roll it over to another deposit problem the account automatically rolls over in a 3 month fixed term currently paying 1.625%pa...typical of how most fixed account work.

Here's a link to the current Bangkok Bank promotion which includes the 15 month/3.25% and the associated rules in very clear English. But a person would need to open an account by 16 Oct...and that don't mean the account starts earning something less than 3.25% after 16 Oct, it just means that promotion won't be available no more. Come the end of the current promotion the bank will roll out new promotions for certain fixed terms...that's always the best time to get into certain fixed term deposits. Also here's a link showing all of the current Bangkok Bank deposits rates. Excluding the current/checking account, the lowest rate paid is 0.75% for the regular savings account.

You must be thinking the 7% VAT you pay for most products/services like buying something at Lotus; this is not applicable to bank accounts. The withholding tax for most fixed accounts is 15%.

[Arkady]

Give a Thai gf 1 million to buy a piece of land in a village Isaan and spend 9 million building an extravagant nouveau rich style dwelling on it. Fixed return in perpetuity. LOL.

Seriously all banks offer fixed deposit up to 3 years or so with the highest rates from the higher purchase banks, Kiatnakin, Thanachart and Tisco plus LH Bank which is even smaller. I don't think any are likely to go bust but larger banks offer lower rates and lower risk.

You can also look at the fixed income funds offered by all the large banks' fund management subsidiaries. You can usually get a similar or better return to fixed deposit but can withdraw you money with a few days' notice without penalty.

Finally with a bit more risk and volatility you can open an account with a broker and invest in TFUND, a property fund that owns freehold factories for rental. You can get a 7% tax free yield and also have the chance of capital appreciation over 10 years, since the land value will surely go up. Right now the price is well below its peak of earlier in the year. That would be my choice to get a real return over 10 years. With fixed deposit you will be lucky to outperform inflation, so you may have a negative real return.

[Briggsy]

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 .

scobie

You make very valid points.

One of the dangers is that the banks often sell other financial products in their branches that are linked to life assurance. The staff, or commission agents since I am not sure they are bank employees despite wearing uniforms, are mostly young and female and would definitely not be able to explain what they were selling in English and I think the majority would not be able to explain in Thai. But they would keep harping on about some headline interest of 13% which in no way reflected reality. This might be the interest rate in the 25th and final year of the policy which would be void if any payment was missed, for example.

So, beware what is pushed on you in the banks.

[scobie redux]

But money invested in cash deposits - ANYWHERE in the world - is guaranteed to lose every single time because cash interest rates are always lower than inflation.

an incorrect generalising statement. if one locks long term in any high yielding asset (including cash) during a period of high inflation the results are excellent positive yields.

good examples are GBP and USD end 70s beginning 80s. those with long term fixed deposits and long Gilts or UST minted money.

Which is why I used the term cash deposits, Naam. You are talking about longer term deposits. I don't call that cash; cash is either immediately accessible or accessible in the short term.

Short term - 30-60 day - do not pay anywhere near inflation. And, yet, ironically, people thing this sort of saving vehicle is the safest of all

[Muhendis]

The only thing I would add is to watch out for the terms of the interest rate. Bangkok Bank have a deposit account that looks attractive at 3.25% but, written in Thai, this is only for six months after which it reverts to the basic 0.1%. There are other banks that offer slightly less but for the whole year. You will be taxed at source on the interest (7%).

Maybe you could point out the deposit account you are talking about on the Bangkok Bank web site which has excellent information in both Thai and English. The only deposit account I'm aware of by Bangkok Bank that will pay 3.25%pa is their current promotion on a 15 month fixed term saving account (which I signed up for last month...after by most recent 7 month fixed term account matured). The 15 month fixed account pays 3.25%pa for the entire 15 months...after it matures in 15 month if a person don't go in an roll it over to another deposit problem the account automatically rolls over in a 3 month fixed term currently paying 1.625%pa...typical of how most fixed account work.

Here's a link to the current Bangkok Bank promotion which includes the 15 month/3.25% and the associated rules in very clear English. But a person would need to open an account by 16 Oct...and that don't mean the account starts earning something less than 3.25% after 16 Oct, it just means that promotion won't be available no more. Come the end of the current promotion the bank will roll out new promotions for certain fixed terms...that's always the best time to get into certain fixed term deposits. Also here's a link showing all of the current Bangkok Bank deposits rates. Excluding the current/checking account, the lowest rate paid is 0.75% for the regular savings account.

You must be thinking the 7% VAT you pay for most products/services like buying something at Lotus; this is not applicable to bank accounts. The withholding tax for most fixed accounts is 15%.

The account I was referencing was on offer over a year ago and my bank branch did not have the English translated leaflet. When I spoke to a manager about this I was told that if I tried to close the account they would make me a better offer. Thanks for the tax info. Since we all pay tax why can't we have some of the benefits. Ooops! Sorry not this thread.