Insurance Needed For Bangkok Bank Account?

[lcp0761]

I had to open an account with bangkok bank in phuket to have a direct deposit account for my social security checks from the U.S. This was about a year and one half ago. they told me the same thing; I had to first buy an insurance policy from them which was over 3,000 baht. I then checked with Ayudthya bank and Kasikorn to see if I could get my government checks there. they said that it could be done but it would take at least one month to have access to the money as they would have to send the check to the U.S. to be cashed (?) etc. so I was stuck and had to pay for an insurance policy that I didn't want with Bangkok Bank. It has since expired and I haven't had to renew it.

I will be retiring to Thailand in 2-years from the US. My work allowed me to work in numerous overseas countries, of which I spent 2.5 years in Thailand (work in the security environment).

Question - re: sending your retirement check and direct deposit into the Bangkok Bank account, how does that work as I assumed the only option was to do monthly wire transfers.

[Pib]

I had to open an account with bangkok bank in phuket to have a direct deposit account for my social security checks from the U.S. This was about a year and one half ago. they told me the same thing; I had to first buy an insurance policy from them which was over 3,000 baht. I then checked with Ayudthya bank and Kasikorn to see if I could get my government checks there. they said that it could be done but it would take at least one month to have access to the money as they would have to send the check to the U.S. to be cashed (?) etc. so I was stuck and had to pay for an insurance policy that I didn't want with Bangkok Bank. It has since expired and I haven't had to renew it.

I will be retiring to Thailand in 2-years from the US. My work allowed me to work in numerous overseas countries, of which I spent 2.5 years in Thailand (work in the security environment).

Question - re: sending your retirement check and direct deposit into the Bangkok Bank account, how does that work as I assumed the only option was to do monthly wire transfers.

Two methods:

1. Have you retirement payment sent to your U.S. bank and then transfer from your U.S. bank monthly to your Bangkok Bank "regular" savings account. Either sent the transfer ad-hoc manually (i.e., you manually initiate the transfer) or set your U.S. account to automatically transfer X-amount on a certain day of each month/a day or so after the pension is deposited to the account. Use the Bangkok Bank New York branch routing number and your in-Thailand Bangkok Bank savings account number....it's just like doing a domestic funds transfer to any other U.S. bank.

2. Have your retirement payment sent directly from the pension paying agency to Bangkok Bank by using the Bangkok Bank New York routing number and your in-Thailand Bangkok Bank account number. BUT, you will need to establish a special "Direct Deposit" savings account with your in-Thailand Bangkok Bank branch; otherwise, Bangkok Bank will spot the pension payment coding in the monthly payment and reject/hold the transfer. In a transfer from your U.S. bank as mentioned in method 1 there is no longer any pension payment encoding; it's just encoded as a typical funds transfer from your U.S. bank account versus a U.S. pension payment

See this Bangkok Bank webpage for more info regarding funds transfers. And regarding the pension payment, be sure to review the link titled, Advice to Bangkok Bank Customers Receiving Payments from U.S. Govt Agencies or Private Organizations (Direct Deposit)" because that's where it talks needing setup a special Direct Deposit savings account.

Regarding fees for using about ACH transfer methods a fee will be applied by the Bangkok Bank New York branch (usually $5 or $10 depending on their sliding scale fee schedule) and a fee of 0.25% (Bt200 min, Bt500 max) at the in-Thailand Bangkok Bank branch. For a typical social security/military retirement payment up to $2,000 the total fee would be approx $11.15, which is composed of a $5 NY branch fee and a $6.15 fee (Bt200) on the Thailand end Over $2,000 the NY branch fee would go $10 and whatever the 0.25% (Bt200 min, Bt500 max) works out to...but say for a $2500 monthly pension transfer it would be approx $16.25. And if your Sending bank charges a ACH Sending fee, most don't but some do, you would need to add that fee into the Method 1 transfer costs.

[jacko45k]

The guys in the Bank seem to get commissions and hence are always trying to push something at you.

A little BS like trying to persuade you it is obligatory doesn't surprise me.

[lopburi3]

I had to open an account with bangkok bank in phuket to have a direct deposit account for my social security checks from the U.S. This was about a year and one half ago. they told me the same thing; I had to first buy an insurance policy from them which was over 3,000 baht. I then checked with Ayudthya bank and Kasikorn to see if I could get my government checks there. they said that it could be done but it would take at least one month to have access to the money as they would have to send the check to the U.S. to be cashed (?) etc. so I was stuck and had to pay for an insurance policy that I didn't want with Bangkok Bank. It has since expired and I haven't had to renew it.

I will be retiring to Thailand in 2-years from the US. My work allowed me to work in numerous overseas countries, of which I spent 2.5 years in Thailand (work in the security environment).

Question - re: sending your retirement check and direct deposit into the Bangkok Bank account, how does that work as I assumed the only option was to do monthly wire transfers.

The key point is that direct deposit requires that money is sent into an account that requires your personal presence to access (no ATM or joint account) to prevent payment usage after death. For most people direct deposit into a US account and transfer via ACH would likely be the better option.

[CaptHaddock]

I had to open an account with bangkok bank in phuket to have a direct deposit account for my social security checks from the U.S. This was about a year and one half ago. they told me the same thing; I had to first buy an insurance policy from them which was over 3,000 baht. I then checked with Ayudthya bank and Kasikorn to see if I could get my government checks there. they said that it could be done but it would take at least one month to have access to the money as they would have to send the check to the U.S. to be cashed (?) etc. so I was stuck and had to pay for an insurance policy that I didn't want with Bangkok Bank. It has since expired and I haven't had to renew it.

Puzzles me why any SS recipient would use Bangkok Bank instead of a US bank. With BB you cannot access the funds electronically, but have to go in person to make a withdrawal. With a US bank there is no such restriction. You can subsequently transfer from your US bank to BB or some other Thai bank and access those funds electronically, e.g. to pay bills, etc. The BB seems way too restrictive to me.

[Pib]

I had to open an account with bangkok bank in phuket to have a direct deposit account for my social security checks from the U.S. This was about a year and one half ago. they told me the same thing; I had to first buy an insurance policy from them which was over 3,000 baht. I then checked with Ayudthya bank and Kasikorn to see if I could get my government checks there. they said that it could be done but it would take at least one month to have access to the money as they would have to send the check to the U.S. to be cashed (?) etc. so I was stuck and had to pay for an insurance policy that I didn't want with Bangkok Bank. It has since expired and I haven't had to renew it.

Puzzles me why any SS recipient would use Bangkok Bank instead of a US bank. With BB you cannot access the funds electronically, but have to go in person to make a withdrawal. With a US bank there is no such restriction. You can subsequently transfer from your US bank to BB or some other Thai bank and access those funds electronically, e.g. to pay bills, etc. The BB seems way too restrictive to me.

Regarding the Bangkok Bank "Direct Deposit" account restrictions for withdrawing money (i.e., must do it in person, don't have ATM access, etc), that just their way of trying to comply with the U.S. laws by preventing pension payment fraud. Plus, among Thai banks "only" Bangkok Bank has ACH capability allowing a U.S. govt agency or private organizations to transmit the money payment via the low cost ACH method versus the pricey bank SWIFT method. I definitely agree a person should just have the pension payment sent to their U.S. bank first; then transfer from your U.S. bank to Bangkok Bank via ACH to your "regular" Bangkok Bank savings account versus setting up a Bangkok Bank Direct Deposit account. But for those who maybe don't have a U.S. bank account anymore or would just prefer to pay $11 to $16 per payment by having the U.S. pension payer send the payment VFR-direct via ACH to Bangkok Bank then that's there choice I guess.

[el jefe]

Back on topic.

I went with my wife (American) to Bangkok Bank today. KSK branch in Chiang Mai. She opened two accounts there. She has never had an account there before. No one asked if she wanted/needed/required insurance.

[davejones23]

Yeap., it would be good to see exactly what the sign/note said. That is, specifically saying buying accident insurance is a requirement to open an account or just saying/implying when opening a new account that getting accident insurance might be a thing to do. There have been some posts decribing how some Kbank branches have really been pushing their higher priced debit cards which include accident protection... some posters apparently fell for the hard sell and took the higher priced card while others stood their ground and took the standard/lower cost/no insurance card.

Sent from my Onda V971 tablet

I read the sign a few times because I was sitting right in front of it while the sorted out my stuff. I can't remember the exact wording, but it said that insurance had to be bought if you want to open a new account and weren't working in Thailand. It didn't say it was option, nice to have, etc. Similar to that infamous t-shirt slogan - No Insurance, No Account.

[davejones23]

Go back and read the sign again. Slowly.

I already read it, so no need to go back to re-read. Maybe you can go take a loom and report back. No need to believe me if you don't want to.

[davejones23]

Interesting answers. I already have an account, so didn't affect me anyway. I was just wondering what other had been told. I'm not claiming it's law, enforced or whatever. I just saw the sign and wondered.

[Pib]

Below is what the Bangkok Bank webpage says regarding requirements to open a new account...no mention of any insurance requirement: Link. Partial quote below from the link.

Guess we'll just have to wait and see if anyone else reports their experience in opening a Bangkok Bank savings account at the HQ Bangkok Bank Building Silom Branch.

[davejones23]

Below is what the Bangkok Bank webpage says regarding requirements to open a new account...no mention of any insurance requirement: Link. Partial quote below from the link.

Guess we'll just have to wait and see if anyone else reports their experience in opening a Bangkok Bank savings account at the HQ Bangkok Bank Building Silom Branch.

Capture.JPG

My guess is that's it's not enforced, but they get some people to buy the insurance. You'll get a range of answers like above.

[ableguy]

Bullshit ignore them, I bank with them for years simple marketing ploy. Inform head bank in BKK if they insist.

[louse1953]

I opened a basic savings account at the head office in Silom Road in April. I entered Thailand on a 30 day visa exemption. I had taken all of the documentation the website told me was required to open an account and the first thing I was told was that there was a new policy that I had to buy the insurance. They told me that if I had a one year visa I did not need to buy one year of insurance but as I was only in the country for 3 weeks I had to buy. I thought to myself that this is what the guys on Thai Visa mean when they say TIT . I told the GF that this was just a con to get me to buy insurance I didn't need. I told the bank employee that I had travel insurance and medical insurance but they insisted I had to buy to open an account.

After I calmed myself down I realised I needed a bank account and the insurance was only about £22 in UK money so I bought it. The rest of the experience was really pleasant. They only looked at my passport. they did not ask to see any of the documentation I had brought proving my UK address or bank account. They didn't ask for proof of my Thai address. The best bit was that they give you your ATM card right there. Put it in a little card reader of some sort and you get to pick your own pin and take the card away with you. In the UK your card is posted to you and a pin posted separately which can take up to a week sometimes.so apart from the insurance bit I would say that I preferred opening an account in Thailand to opening one in the UK. It was far more efficient.

If that was Thailand then I like it.

I had a few issues at Silom,but just went over their heads and got to see vice president.Lovely women who agreed with me.Front office staff just run the company line they have been told to.Most important to keep your cool and have your facts right.

[louse1953]

Bullshit ignore them, I bank with them for years simple marketing ploy. Inform head bank in BKK if they insist.

5555,it was head office that was trying it on.Banks and insurance company's,buyer beware.

[ChickenWing]

I went over to Bangkok Bank head office @ silom to open a savings account this morning. I did not notice any sign that said anything about insurance, and there was no mention of it made during my signing up. They were happy to open my account with a smile and only add on costs were 300 baht for the ATM card, and SMS notifications are 10 baht per month. It seems they've backed down from the insurance hustle. BTW, I have a US passport and 60 day Tourist (TR) visa.