Best interest rates on fixed deposit account

[Sparkles]

Re rebates of taxes withheld, as far as I know, you need a form (two copies) issued from the bank noting the account with the account holder, residence address, passport number, interest payments and taxes (by date), both copies signed and dated by a bank officer at the branch. I think I got it all. The other forms are at the government office, as indicated above.

I omitted to say in my post above that of course you have to provide your passport and I used my Thai driving licence for address purposes when I obtained the tax card from City Hall.

At the Amphur Office my driving licence,passport and my wifes ID card did the trick. Photo copies of all documents were taken which is the norm.

[balo]

Quote Balo 'And the good news is no taxes to think about'

Surely you pay tax on the interest ?

I was told by LH bank that if the interest stays under 20000 baht per year I do not have to pay taxes. So if I deposit 1 million with 2.30% interest I just have to pay attention to how much I get back durng the year and if I am close to 20k I can withdraw and the bank can open another account for me to avoid the taxes . I think it's legal to do so.

[CMBob]

I was told by LH bank that if the interest stays under 20000 baht per year I do not have to pay taxes. So if I deposit 1 million with 2.30% interest I just have to pay attention to how much I get back durng the year and if I am close to 20k I can withdraw and the bank can open another account for me to avoid the taxes . I think it's legal to do so.

I know that there is some limit (the amount of interest triggering the automatic withholding by the bank) but I've never have asked about it. It seems, if what they told you is correct, is that the amount has to be under the 20k figure. I've read that same figure as the tip-over point in another thread in TV somewhere.

Typically, however, it's been my understanding from my bank (SCB) that the interest is only paid upon completion of the term for these somewhat-fixed accounts (at least that's how it's happened with me several times) and, should you withdraw the funds earlier, you forfeit all the interest. So I'm not so sure your strategy will work.

[Sparkles]

I've had investment accounts with the Bangkok Bank for the last 8 years they have been for various terms from 4 months to 14 months I have always been charged interest no matter what the amount.

I might add the investment figure is always around 800,000 baht which is purely for retirement visa renewal. However at least now we know you can get a refund well unless they move the goal posts

[Mapguy]

I've had investment accounts with the Bangkok Bank for the last 8 years they have been for various terms from 4 months to 14 months I have always been charged interest no matter what the amount.

I might add the investment figure is always around 800,000 baht which is purely for retirement visa renewal. However at least now we know you can get a refund well unless they move the goal posts

A typographical comment: I think you mean that your interest has been taxed, not that you have been charged interest.

[balo]

I was told by LH bank that if the interest stays under 20000 baht per year I do not have to pay taxes. So if I deposit 1 million with 2.30% interest I just have to pay attention to how much I get back durng the year and if I am close to 20k I can withdraw and the bank can open another account for me to avoid the taxes . I think it's legal to do so.

I know that there is some limit (the amount of interest triggering the automatic withholding by the bank) but I've never have asked about it. It seems, if what they told you is correct, is that the amount has to be under the 20k figure. I've read that same figure as the tip-over point in another thread in TV somewhere.

Typically, however, it's been my understanding from my bank (SCB) that the interest is only paid upon completion of the term for these somewhat-fixed accounts (at least that's how it's happened with me several times) and, should you withdraw the funds earlier, you forfeit all the interest. So I'm not so sure your strategy will work.

Yes, my strategy will work.

This is not a fixed account but a special savings account , if you deposit over 500k you'll get the highest interest for this type of account which is now 2.30% with unlimited withdrawals and deposits. I am not aware of any other bank that offer this option. You'll get an ATM card and internet bank as well , and can pay your bills or do transfers to other banks. As long as your balance is over 500k you will not lose any interest.

LH also offer special fixed accounts with over 3% interest but then you have to follow much stricter rules.

Edited April 3, 2015 by balo

[Rotweiler]

My report on current interest rates at the Thanachart Bank.

First, I was told that all investment/account rates are (supposed to be) the same from branch to branch.

Second,the current rates I was offered are:

3 Months - 1.5%

6 Months - 2.0%

12 Months - 2.3%

All are fixed accounts. Not very good.

Great! Will drop in there tomorrow. That would be much better than what I am offered atm.

Is that recent info? If so, which branch was that? My branch of Thanachart is offering 2% on 6month fixed, 2.3% on 1 year.

I think Thanachat Bank is offering 3+ % on a fixed deposit one year with no withdrawal. Check them out.

The branch in San Sai. I met the manager a few weeks ago and he showed me an info on this fixed savings acc., and it was almost double of what I get from Kasikorn at the moment.

[Sparkles]

My report on current interest rates at the Thanachart Bank.

First, I was told that all investment/account rates are (supposed to be) the same from branch to branch.

Second,the current rates I was offered are:

3 Months - 1.5%

6 Months - 2.0%

12 Months - 2.3%

All are fixed accounts. Not very good

Is that recent info? If so, which branch was that? My branch of Thanachart is offering 2% on 6month fixed, 2.3% on 1 year.

I think Thanachat Bank is offering 3+ % on a fixed deposit one year with no withdrawal. Check them out

At the moment anything over 1.5 % with withdrawal is ok,checking all the banks. The Thai economy is on very shaky ground , exports are down,predictions of any growth are suspect to say the least and the report that inflation is down is most likely due to the reduction on the price of fuel.For some obscure reason the Thai baht seems tied to the US dollar.As an Aussie who has seen his dollar go from 32 baht to 24 baht to the dollar I am really (deleted) off. But then TAT come out with a predicted mass increase in tourism ,how predictable, a tourism revolution !

[bangmai]

For April, CIMB are doing 2.55% 7-month, with 50,000 minimum.

[Mapguy]

Face it! there are no "hot" returns in Thailand at present or in most countries in which posters here are interested. Even gold is beginning to look attractive, but commodity prices are a sometime thing, too. Bhat-for-bhat people are basically wasting their time with the established local channels of conservative investment. But then, you can always get Alan Hall's telephone number in England!

[bangmai]

My report on current interest rates at the Thanachart Bank.

First, I was told that all investment/account rates are (supposed to be) the same from branch to branch.

Second,the current rates I was offered are:

3 Months - 1.5%

6 Months - 2.0%

12 Months - 2.3%

All are fixed accounts. Not very good

Is that recent info? If so, which branch was that? My branch of Thanachart is offering 2% on 6month fixed, 2.3% on 1 year.

At the moment anything over 1.5 % with withdrawal is ok,checking all the banks. The Thai economy is on very shaky ground , exports are down,predictions of any growth are suspect to say the least and the report that inflation is down is most likely due to the reduction on the price of fuel.For some obscure reason the Thai baht seems tied to the US dollar.As an Aussie who has seen his dollar go from 32 baht to 24 baht to the dollar I am really (deleted) off. But then TAT come out with a predicted mass increase in tourism ,how predictable, a tourism revolution !

the "obscure reason" is that imports/exports are denominated in USD. You would have gotten a 33% return, if you repatriated money that was exchanged for THB at 32.......+ interest while it was here. Look in the mirror, if you want to see, who you should be pi##ed at. But of course, real estate prices crashed, just like the many experts on here predicted...so you should now be able to buy a condo at half price....

[Sparkles]

Bangmai your "theory" depends on having spare cash lying around and I don't and neither do I,unlike yourself, have a crystal ball

[jamiesilver]

well the SCB flexible account is offering 2.75 and you can withdraw 60 times, if i understand it correctly...
This doesnt seem bad to me
They told me interest is paid every 6m
So to avoid paying tax i would say dont put in more than 700,000, after a year you should have 720,000 which is 19,800 interest - you are under the 20k radar, just remember to withdraw the interest when you renew it and all is good.
Also you are aloud to open as many accounts as you want, so if you have a couple mil no problem...

A 12-month fixed deposit account that allows withdrawals, designed for customers who want long-term savings with the ability to maintain cash flow.

*Interest rates are high, similar to those offered for fixed accounts, while depositors enjoy increased liquidity and additional features as follows:

• Unlimited withdrawals anytime.
• Full or partial withdrawals without having to maintain a minimum deposit.
• Receive a high interest rate similar to that offered for fixed deposit accounts for less than 60 withdrawal days.**
• Receive interest at a rate close to that offered for savings deposit accounts for more than 60 withdrawal days.**
• No withdrawal fee payment (except for inter-region withdrawals).

[bangmai]

That may not be available to non-residents (farang). I've followed the rates for years and never seen SCB with anything real good. Most of the accounts withhold 15% from day 1.......This was released today by SCB...feel free to point this out....I'm skimmed it......2.7 is well above market right now.

http://www.scb.co.th/stocks/media/new-ratesfees/deposit-en.pdf?1442400790824

Edited September 16, 2015 by bangmai

[northernjohn]

That may not be available to non-residents (farang). I've followed the rates for years and never seen SCB with anything real good. Most of the accounts withhold 15% from day 1.......This was released today by SCB...feel free to point this out....I'm skimmed it......2.7 is well above market right now.

http://www.scb.co.th/stocks/media/new-ratesfees/deposit-en.pdf?1442400790824

I believe that they have a minimum deposit of 1,000,000 baht for that also. Not sure but I believe it has to be left in for 1 year to get the highest rate. 6 months is a lower rate.

[bangmai]

That may not be available to non-residents (farang). I've followed the rates for years and never seen SCB with anything real good. Most of the accounts withhold 15% from day 1.......This was released today by SCB...feel free to point this out....I'm skimmed it......2.7 is well above market right now.

http://www.scb.co.th/stocks/media/new-ratesfees/deposit-en.pdf?1442400790824

I believe that they have a minimum deposit of 1,000,000 baht for that also. Not sure but I believe it has to be left in for 1 year to get the highest rate. 6 months is a lower rate.

they do often advertise "step up" accounts, and quote the interest for the final step, after receiving less than competitive rates for quite a few months.

[Sophon]

well the SCB flexible account is offering 2.75 and you can withdraw 60 times, if i understand it correctly...

This doesnt seem bad to me

They told me interest is paid every 6m

So to avoid paying tax i would say dont put in more than 700,000, after a year you should have 720,000 which is 19,800 interest - you are under the 20k radar, just remember to withdraw the interest when you renew it and all is good.

Also you are aloud to open as many accounts as you want, so if you have a couple mil no problem...

A 12-month fixed deposit account that allows withdrawals, designed for customers who want long-term savings with the ability to maintain cash flow.

*Interest rates are high, similar to those offered for fixed accounts, while depositors enjoy increased liquidity and additional features as follows:

• Unlimited withdrawals anytime.
• Full or partial withdrawals without having to maintain a minimum deposit.
• Receive a high interest rate similar to that offered for fixed deposit accounts for less than 60 withdrawal days.**
• Receive interest at a rate close to that offered for savings deposit accounts for more than 60 withdrawal days.**
• No withdrawal fee payment (except for inter-region withdrawals).

Where have you seen the 2.75% interest rate quoted for the SCB flexible fixed account? The SCB interest rate page quotes an interest rate of 1.45% p.a. (which sounds more likely) for this account.

Sophon

Edited September 17, 2015 by Sophon

[jamiesilver]

unfortunately you are right Sophon
3 days ago i called SCB to ask what the deposit rate was for the felxi saver, they adamantly told me on the phone it was 2.75%
So i spent all of yesterday moving money about withdrwaing from my Mee tee dai accounts that are only paying 1.8% right now
When i got to my SCB branch they said they didnt know of any 2.75 accounts so i told them to call the call center, they did and sure enough the call center told them yes 2.75%
So then i go through the pain of a 3 hour ordeal opening 4 accounts with them and jumping through all sorts of red tape and checks on my passport and visa, calling my employers and yadayada
After this they pass me the bank books and i check everything is correct, sure enough it says 1.45%
I was furious to say the least..........
i then call the call center again and ask them the rate in english, they said 2.75% again
Then after i pass the phone to the bank clerk after 20 mins they come to the conclusion that is last years rates...
So back to the drawing boards - Mee tee dai krung sri is 1.8 but they told me they expect it to drop again in a few months

[bangmai]

Allow me to present you with your "Do things the hard way" merit badge. You've certainly earned it. I was told by the manager of CIMB (next door to Krungsri at AP Plaza) that if you were 55 yo, you could get the senior rate (even farang) which is now 2.15% on regular savings. I'm too young, but if someone could verify this, I would appreciate it, and I think that would become the best option for retirees over 55, who need to have savings accounts here in LOS. Also, while CIMB only pays 1.5, they do claim to give you 500 AirAsia bonus miles for ever 100,000 thb per quarter, based on your average balance for that quarter. So, if you had 800,000 in there...you would get 4000 bonus points per quarter, and that would generally be a free one way ticket to BKK from CNX or 2 free round trips per year, as they run about 3800 points each way....but this is something else that I have not verified 100%, as my account is newer....there promos can be very good there, but "Yellow" is hard to beat, as far as no non-sense, easy to set up, and the branch manager at AP Plaza is top notch.

Edited September 19, 2015 by bangmai

[scooterboy]

Any more or new developments?