Is it safe to do 1 year bank savings with Thai banks

[expatsupreme]

I have heard of so many crimes like stealing from your bank account by emoloyees of thai banks etc (pattaya story)

SO i wonder if somebody is depositing the money for like 1 year, I have heard that the interest rate is 3 %, which is better than to keep your money in sock

do you need to pay some taxes from that 3 %, any dangers?

[metisdead]

Moved to the Jobs, economy, banking, business, investements forum.

[meatboy]

fear not,is there any banking system in the world that you can trust.

there is 3.30% available at quite a few banks fixed for 15months for me this is a fair rate.

as for tax 15% is deducted on maturity which you can claim back as long as you have no more than arround 140,000baht interest in any tax yr.jan.-dec.

so dont delay do it today.

[expatsupreme]

te problem is what to do with THB if you need USD of EUR, bank is not going to do a conversion I think

[Naam]

te problem is what to do with THB if you need USD of EUR, bank is not going to do a conversion I think

of course they do a conversion. but you have to withdraw Cash Baht and exchange them into USD or EUR.

[topt]

te problem is what to do with THB if you need USD of EUR, bank is not going to do a conversion I think

All banks and FX exchange booths will change baht for most currencies (depending on how much if they have in stock) and the rates are all visible online or on the windows. If you are talking about FX trading/dealing or large amounts then that is a different story.

You might get more help if you gave more detail on what you were looking to do......

[Naam]

te problem is what to do with THB if you need USD of EUR, bank is not going to do a conversion I think

All banks and FX exchange booths will change baht for most currencies (depending on how much if they have in stock) and the rates are all visible online or on the windows. If you are talking about FX trading/dealing or large amounts then that is a different story.

You might get more help if you gave more detail on what you were looking to do......

you can order any amount of forex. takes one, max two working days. exchange rate applies when physically exchanging cash, not when ordered!

[topt]

te problem is what to do with THB if you need USD of EUR, bank is not going to do a conversion I think

All banks and FX exchange booths will change baht for most currencies (depending on how much if they have in stock) and the rates are all visible online or on the windows. If you are talking about FX trading/dealing or large amounts then that is a different story.

You might get more help if you gave more detail on what you were looking to do......

you can order any amount of forex. takes one, max two working days. exchange rate applies when physically exchanging cash, not when ordered!

I am well aware of that - sorry I was not precise enough but I was talking about changing cash there and then............

[Pib]

It's safe as long as you practice safe banking techniques, like guarding your debit card & PIN, guarding your ibanking password, not opening a joint account with someone who is you friend/love (lust) of the day, just not doing stupid stuff that could cause you to lose your money in any country. Below is how Bangkok Bank describes Safe Banking in Thailand from it's booklet for foreigner customers....and I think the last statement quoted below is important as banking laws/rules/consumer protection is different in all countries. You can download the whole booklet at this Bangkok Bank webpage (look in the upper right hand corner of the page)...very informative overview of banking products/services/issues in Thailand regardless of the Thai bank you open an account with since all Thai banks have to follow the same Thai laws and Bank of Thailand regulations.

Safe banking in Thailand

Foreigners in Thailand need to be just as vigilant with their finances as they would be at home. Despite the

generosity and friendliness of the Thai people, there are times when you need to be wary of strangers,

particularly around ATM machines and people who approach you and offer to ‘help’ with your transactions.

Check all your receipts and statements for unusual activity and don’t leave any of your information lying

around. Even at home, if you have visitors or domestic help, cards and PINs are vulnerable and should be

locked in a safe or kept with you at all times.

You should also avoid doing your online banking on public computers in internet cafes. If any of your bank cards

become lost or stolen, or if you suspect you have been the victim of fraud, call Bangkok Bank immediately

on 1333 or +662 638 4999 to cancel your card or put a hold on your accounts. You will be liable for all

transactions unless you have already notified the bank – this may be different to your expectations of banks

in your home country.

Right now the government deposit coverage/insurance is up to Bt50M but in a few years it's scheduled to drop to Bt1M...but I expect the government will end up not letting it drop Bt1M but time will tell.

If you put you money in a fixed saving account, like I do for my yearly retirement extension of stay funds, there is a 15% withholding tax on the interest earned, but you can get this refunded each year by filing a refund request during Jan-Mar at the local tax revenue office. The refund request is a simple process at your local revenue office...at some offices it a very simple one page form...at other offices it may require a simple tax return filing...at my office it's the simple one page form with an attachments like a copy of your passport, copy of your passbook page showing the interest paid/tax withheld, and the letter from the bank confirming the tax withheld...depending on your office it will take 2-6 weeks to get the refund.

[Jack Mountain]

It's safe as long as you practice safe banking techniques, like guarding your debit card & PIN, guarding your ibanking password, not opening a joint account with someone who is you friend/love (lust) of the day, just not doing stupid stuff that could cause you to lose your money in any country. Below is how Bangkok Bank describes Safe Banking in Thailand from it's booklet for foreigner customers....and I think the last statement quoted below is important as banking laws/rules/consumer protection is different in all countries. You can download the whole booklet at this Bangkok Bank webpage (look in the upper right hand corner of the page)...very informative overview of banking products/services/issues in Thailand regardless of the Thai bank you open an account with since all Thai banks have to follow the same Thai laws and Bank of Thailand regulations.

Safe banking in Thailand

Foreigners in Thailand need to be just as vigilant with their finances as they would be at home. Despite the

generosity and friendliness of the Thai people, there are times when you need to be wary of strangers,

particularly around ATM machines and people who approach you and offer to ‘help’ with your transactions.

Check all your receipts and statements for unusual activity and don’t leave any of your information lying

around. Even at home, if you have visitors or domestic help, cards and PINs are vulnerable and should be

locked in a safe or kept with you at all times.

You should also avoid doing your online banking on public computers in internet cafes. If any of your bank cards

become lost or stolen, or if you suspect you have been the victim of fraud, call Bangkok Bank immediately

on 1333 or +662 638 4999 to cancel your card or put a hold on your accounts. You will be liable for all

transactions unless you have already notified the bank – this may be different to your expectations of banks

in your home country.

Right now the government deposit coverage/insurance is up to Bt50M but in a few years it's scheduled to drop to Bt1M...but I expect the government will end up not letting it drop Bt1M but time will tell.

If you put you money in a fixed saving account, like I do for my yearly retirement extension of stay funds, there is a 15% withholding tax on the interest earned, but you can get this refunded each year by filing a refund request during Jan-Mar at the local tax revenue office. The refund request is a simple process at your local revenue office...at some offices it a very simple one page form...at other offices it may require a simple tax return filing...at my office it's the simple one page form with an attachments like a copy of your passport, copy of your passbook page showing the interest paid/tax withheld, and the letter from the bank confirming the tax withheld...depending on your office it will take 2-6 weeks to get the refund.

"government deposit coverage/insurance is up to Bt50M"

Are you sure abt this? I thought it was already down to 1 million Baht ...

[Pib]

Still Bt50M thru 10 Aug 15...to Bt1M 11 Aug 16.

http://www.dpa.or.th/more_news.php?cid=42&filename=index___EN

Edited November 7, 2013 by Pib

[brit1984]

compared to the alternative you mention of keeping it in your sock, putting the money in the bank will give a higher return with less risk, and will free up a sock to be used for other purposes

[KittenKong]

It's safe as long as you practice safe banking techniques, like guarding your debit card & PIN, guarding your ibanking password, not opening a joint account with someone who is you friend/love (lust) of the day, just not doing stupid stuff that could cause you to lose your money in any country.

I'm not so sure about that.

I have come across several reported instances of bank staff fraudulently transferring money from a customer's account to another account and then disappearing with it, and from the reports the banks don't always want to accept responsibility for this.

I also know someone who is currently at court with his Thai bank trying to get reimbursed for ATM withdrawals totalling over 1 million Baht that happened at the other end of the country to where he was at the time. He was in possession of his card at all times and had never disclosed the pin to anyone.

I'm not saying that neither event could ever happen in the UK or elsewhere, but I cant see a bank in the west being difficult about reimbursing the customer quickly and fully in such cases, and well before any court action was needed.

Of course it does make perfect sense not to have large sums in accounts with ATM access in the first place, and I maintain multiple Thai accounts for this very reason.

[Jack Mountain]

Still Bt50M thru 10 Aug 15...to Bt1M 11 Aug 16. http://www.dpa.or.th/more_news.php?cid=42&filename=index___EN

Thx, i missed this news item http://www.thaivisa.com/forum/topic/562981-deposit-protection-will-not-be-reduced-as-planned/

[Pib]

It's safe as long as you practice safe banking techniques, like guarding your debit card & PIN, guarding your ibanking password, not opening a joint account with someone who is you friend/love (lust) of the day, just not doing stupid stuff that could cause you to lose your money in any country.

I'm not so sure about that.

I have come across several reported instances of bank staff fraudulently transferring money from a customer's account to another account and then disappearing with it, and from the reports the banks don't always want to accept responsibility for this.

I also know someone who is currently at court with his Thai bank trying to get reimbursed for ATM withdrawals totalling over 1 million Baht that happened at the other end of the country to where he was at the time. He was in possession of his card at all times and had never disclosed the pin to anyone.

I'm not saying that neither event could ever happen in the UK or elsewhere, but I cant see a bank in the west being difficult about reimbursing the customer quickly and fully in such cases, and well before any court action was needed.

Of course it does make perfect sense not to have large sums in accounts with ATM access in the first place, and I maintain multiple Thai accounts for this very reason.

Yeap, it can and does happen in every country....usually the posts you see on any blog about banking problems are complaints...people just don't write posts about how safe and secure their money is. And I would never say consumer protection laws in Thailand are as strong as in most western countries...seems it more like banking protection. As Bangkok Bank's booklet says, "... this may be different to your expectations of banks

in your home country."

[falang07]

 

Still Bt50M thru 10 Aug 15...to Bt1M 11 Aug 16.http://www.dpa.or.th/more_news.php?cid=42&filename=index___EN

 

Well, believe what you want but a government insurance is not worth much in case of a big trouble. You might have 50M in the bank and wake up in the morning with a new law lowering this to 1M with no way to take it out to prevent money outflow, like in Cyprus where they can take 300 euro per day only.

[Pib]

 

Still Bt50M thru 10 Aug 15...to Bt1M 11 Aug 16.http://www.dpa.or.th/more_news.php?cid=42&filename=index___EN

 

Well, believe what you want but a government insurance is not worth much in case of a big trouble. You might have 50M in the bank and wake up in the morning with a new law lowering this to 1M with no way to take it out to prevent money outflow, like in Cyprus where they can take 300 euro per day only.

Yeap, probably better to put your money in a sock under your mattress....or keep it in another country where financial problems have never or will never occur.

[falang07]

If you think your big money is safe in the bank, it is not. The bank loans the deposits with a leverage of about 1:10 (or even more?) so in case of a trouble (for instance if depositors suddenly try to withdraw 10% or more of their deposits), the bank is effectively bankrupt.

[falang07]

 

Yeap, probably better to put your money in a sock under your mattress....or keep it in another country where financial problems have never or will never occur.

Unfortunately there is no country in the world where the paper is backed up by something with a real value, like gold, as we have seen in the EU recently.

[Pib]

If you think your big money is safe in the bank, it is not. The bank loans the deposits with a leverage of about 1:10 (or even more?) so in case of a trouble (for instance if depositors suddenly try to withdraw 10% or more of their deposits), the bank is effectively bankrupt.

 

Yeap, probably better to put your money in a sock under your mattress....or keep it in another country where financial problems have never or will never occur.

Unfortunately there is no country in the world where the paper is backed up by something with a real value, like gold, as we have seen in the EU recently.

Exactly....banks/credit unions have never been required to keep 100% of the customers deposits; only a portion as determined by the govt. Otherwise these financial entities would not have funds to make loans, make money, stay in business...we would have to use our mattresses to store our money. We definitely live in a world of fiat money.

[01322521959]

Still Bt50M thru 10 Aug 15...to Bt1M 11 Aug 16. http://www.dpa.or.th/more_news.php?cid=42&filename=index___EN

That's very surprising. The UK only insure up to 85,000 pounds, around four and a half million Baht.

[Pib]

Still Bt50M thru 10 Aug 15...to Bt1M 11 Aug 16. http://www.dpa.or.th/more_news.php?cid=42&filename=index___EN

That's very surprising. The UK only insure up to 85,000 pounds, around four and a half million Baht.

Durn, the UK sounds like a risky place to keep your money! Seriously thou, once the Thai deposit insurance gets down to Bt1M that will be about 20K pounds. I think the Thai govt just bumped it way up during the George W. Bush sponsored financial crisis about 5 years ago that hit many countries worldwide to make everybody feel confident they don't need to worry about losing everything like happenned to many in the late 1990's in Thailand. While 20K pounds may sound low I remember reading some Thai news article saying that amount was enough to cover well over 90% of Thai savings accounts because for the common Thai having Bt1M in the bank is just a dream; sure lots of rich people in Thailand but many, many, many more people who just make around Bt10K-20K per month (about 200-400 pounds/month) and basically live paycheck to paycheck.

[meatboy]

yes pib and we all know where the rich thai's keep their money.N.I.T.

[craigt3365]

<snip>

If you put you money in a fixed saving account, like I do for my yearly retirement extension of stay funds, there is a 15% withholding tax on the interest earned, but you can get this refunded each year by filing a refund request during Jan-Mar at the local tax revenue office. The refund request is a simple process at your local revenue office...at some offices it a very simple one page form...at other offices it may require a simple tax return filing...at my office it's the simple one page form with an attachments like a copy of your passport, copy of your passbook page showing the interest paid/tax withheld, and the letter from the bank confirming the tax withheld...depending on your office it will take 2-6 weeks to get the refund.

Wow...that's great to know. Could be a nice 5k Baht gift! Thanks!

[expatsupreme]

so under 1 million you are safe then and the gov guarantees nothing will happen to your money??

Is that only for one bank or the sum of your money in all thai banks?

[Pib]

<snip>

If you put you money in a fixed saving account, like I do for my yearly retirement extension of stay funds, there is a 15% withholding tax on the interest earned, but you can get this refunded each year by filing a refund request during Jan-Mar at the local tax revenue office. The refund request is a simple process at your local revenue office...at some offices it a very simple one page form...at other offices it may require a simple tax return filing...at my office it's the simple one page form with an attachments like a copy of your passport, copy of your passbook page showing the interest paid/tax withheld, and the letter from the bank confirming the tax withheld...depending on your office it will take 2-6 weeks to get the refund.

Wow...that's great to know. Could be a nice 5k Baht gift! Thanks!

Better in your pocket than the government's pocket...they'll just use it to fund the rice pledging scheme. In case you haven't seen, here's a Link to a Jan 13 thread in getting the refund. Gosh, and it's almost January again...getting close to the time to file (Jan-Mar 14) for the interest tax withholding for this year/2013....I will have two interest refunds to get since I had two fixed accounts mature in 2013...file for both on the same form. And you actually can file for 3 years back worth of interest tax withholdings.

[jacko45k]

te problem is what to do with THB if you need USD of EUR, bank is not going to do a conversion I think

of course they do a conversion. but you have to withdraw Cash Baht and exchange them into USD or EUR.

Nor do I find it a problem as to what to do with the Thai baht.......

[fittobethaied]

Somewhat off topic, but does anyone know if 12-15 month fixed US Dollar accounts are available in Thailand which pay the same kind of interest rates. If so wouldn't it be safer to keep ones money in USD versus Thai Baht, especially in light of the current expectation that the Baht will be losing strength against the USD.

[phitsanulokjohn]

3.3%?I'd be more inclined to place it in a tax free Uk shares individual savings account(ISA).I placed 11,250 pounds(the maximum in any one tax year)in April, in banking shares and in just over 6 months I'm currently 44.7% up,and the upside is when i decide to cash in no tax is payable.Downside is shares can go up as well as down.

[Pib]

Somewhat off topic, but does anyone know if 12-15 month fixed US Dollar accounts are available in Thailand which pay the same kind of interest rates. If so wouldn't it be safer to keep ones money in USD versus Thai Baht, especially in light of the current expectation that the Baht will be losing strength against the USD.

Yes, yes, lose strength Mr Baht...that way I get more baht for my USD...yes, yes, could be a very good thing for expats living in/visiting Thailand.

But I guess it would hurt when converting the other way, baht to USD. Can't help with the fixed US Dollar account thing; I only have fixed savings accounts in baht.