Fixed Terms Deposits in Cambodia - recommendations?

[Oorinara]

ABA Bank currently offers 5.75% for 1yr in USD.

https://www.ababank.com/personal/deposits/fixed-deposit/

Easy to open with passport and biz visa (unsure if tourist visa). Internet and mobile banking available. National Bank of Canada is a major shareholder.

[jpinx]

ABA Bank currently offers 5.75% for 1yr in USD.

https://www.ababank.com/personal/deposits/fixed-deposit/

Easy to open with passport and biz visa (unsure if tourist visa). Internet and mobile banking available. National Bank of Canada is a major shareholder.

Thanks for updates CAB is certainly looking "iffy", but ABA seems to at least have a website that works and they only say "visa" required - no mention of what kind of visa. I wonder if they discriminate about tax with-holding according to visa type.

[Oorinara]

When it comes to currency,

- Canadia, Cambodia Post Bank; USD, THB, KHR

- CAB; USD, KHR

- ABA, PPCB; USD

[jpinx]

When it comes to currency,

- Canadia, Cambodia Post Bank; USD, THB, KHR

- CAB; USD, KHR

- ABA, PPCB; USD

What's the experience (if any) of swift transfer into Cambodia in (for example) Aus$ and getting them to convert and invest in a US$ term deposit? What kinds of exchange rates would that produce - given that it's 2 changes.... ?

[Oorinara]

When it comes to currency,

- Canadia, Cambodia Post Bank; USD, THB, KHR

- CAB; USD, KHR

- ABA, PPCB; USD

What's the experience (if any) of swift transfer into Cambodia in (for example) Aus$ and getting them to convert and invest in a US$ term deposit? What kinds of exchange rates would that produce - given that it's 2 changes.... ?

Have never tried forex conversion. Same currency SWIFT transfer, USD to USD or THB to THB, only so far.

[jpinx]

Regarding Cambodian tax with-holding -- found this in here...

http://www.cpbebank.com/cpeb/interestrate.html

Their rates are not so good, but the government seems to set the with-holding rate, so other banks might work out as a better deal on a business visa for accounts other than fixed terms.

--quote--
Withholding Tax

• Withholding tax of 6.00% and 14.00% will be imposed on Interest Earned for Fixed Deposits for Residents and Non-Residents respectively.
  
• Withholding tax of 4.00% and 14.00% will be imposed on Interest Earned for Savings Account, Premier Savings Account and ACE Current Account for Residents and Non-Residents respectively.
  
• Withholding tax is subject to changes at the discretion of the Government.

[Oorinara]

7 Microfinance institutions, beside banks, are licensed to take deposits.

http://www.nbc.org.kh/english/supervision/microfinance_deposit_taking_institutions.php

Microfinance deposit taking institutions offer higher interest rates, e.g. 8% p.a. in USD and 9% p.a. in THB, than banks in general.

[jpinx]

7 Microfinance institutions, beside banks, are licensed to take deposits.

http://www.nbc.org.kh/english/supervision/microfinance_deposit_taking_institutions.php

Microfinance deposit taking institutions offer higher interest rates, e.g. 8% p.a. in USD and 9% p.a. in THB, than banks in general.

credit ratings?

[Oorinara]

7 Microfinance institutions, beside banks, are licensed to take deposits.

http://www.nbc.org.kh/english/supervision/microfinance_deposit_taking_institutions.php

Microfinance deposit taking institutions offer higher interest rates, e.g. 8% p.a. in USD and 9% p.a. in THB, than banks in general.

credit ratings?

None of them, I'm afraid. Most banks there either.

[jpinx]

7 Microfinance institutions, beside banks, are licensed to take deposits.

http://www.nbc.org.kh/english/supervision/microfinance_deposit_taking_institutions.php

Microfinance deposit taking institutions offer higher interest rates, e.g. 8% p.a. in USD and 9% p.a. in THB, than banks in general.

credit ratings?

None of them, I'm afraid. Most banks there either.

Acleda has Standard and Poors Bstable I believe. There was a massive downgrading of everything 3 or 4 years ago because S&P's discovered that some banks were rated better than the country

[Scouse123]

Acleda bank is the biggest bank in Cambodia followed by Canadia. Canadia has been established in banking the longest in Cambodia. Acleda mainly deals with SMEs whereas Canadia is involved with construction, road projects, shopping malls etc. These are by far the most capitalised of all the banks in Cambodia by both assets and deposits. They have both expanded into Laos and I believe Myanmar is in the pipeline.

The both pay good rates of interest on USD, THB and Riel accounts and there are various plans such as monthly interest, quarterly and term capital and interest payable together.

Cambodia makes banks have much higher deposits lodged as guarantees with the National bank than many western countries do. Acleda asks for a letter from the police which you can obtain for between $10 and $20 along with an ordinary visa as opposed to a tourist visa to open an account. You must have the account six months before they will give you the lower rate of 6% tax on interest unlike Canadia which has different rules and regulations but is much more flexible with its regulations for opening accounts.

Cambodia has been enjoying growth of 7% plus per annum for the last 10 years and appears to be getting stronger with strong interest from Malaysia, Korea, China, Thailand and others regards investing in the country. Thailand especially has opened banks recently so obviously feels there is opportunity.

From next year, regards safety in bank deposits, Thailand will be reducing any government guarantees downwards to maximum 1 million baht so that also is not particularly good to say it is presently 25 million baht.

Lastly, business visas can be for 3, 6 and 12 months. The fee for 12 months was around $295 per year. I do not know where a poster got $145 for five years from and believe that to be inaccurate as these visas must be renewed annually.

[Oorinara]

The regulator discloses financial performance such as profitability and non performing loan ratio of every and every bank and Microfinance institutions annually.

http://www.nbc.org.kh/english/publications/supervision_annual_reports.php

[jpinx]

Acleda bank is the biggest bank in Cambodia followed by Canadia. Canadia has been established in banking the longest in Cambodia. Acleda mainly deals with SMEs whereas Canadia is involved with construction, road projects, shopping malls etc. These are by far the most capitalised of all the banks in Cambodia by both assets and deposits. They have both expanded into Laos and I believe Myanmar is in the pipeline.

The both pay good rates of interest on USD, THB and Riel accounts and there are various plans such as monthly interest, quarterly and term capital and interest payable together.

Cambodia makes banks have much higher deposits lodged as guarantees with the National bank than many western countries do. Acleda asks for a letter from the police which you can obtain for between $10 and $20 along with an ordinary visa as opposed to a tourist visa to open an account. You must have the account six months before they will give you the lower rate of 6% tax on interest unlike Canadia which has different rules and regulations but is much more flexible with its regulations for opening accounts.

Cambodia has been enjoying growth of 7% plus per annum for the last 10 years and appears to be getting stronger with strong interest from Malaysia, Korea, China, Thailand and others regards investing in the country. Thailand especially has opened banks recently so obviously feels there is opportunity.

From next year, regards safety in bank deposits, Thailand will be reducing any government guarantees downwards to maximum 1 million baht so that also is not particularly good to say it is presently 25 million baht.

Lastly, business visas can be for 3, 6 and 12 months. The fee for 12 months was around $295 per year. I do not know where a poster got $145 for five years from and believe that to be inaccurate as these visas must be renewed annually.

Are there any references/links to the sources? Acleda's website does carry a lot of detail about their terms and conditions but not a lot of what's stated here

.

Edited December 19, 2015 by jpinx

[Scouse123]

The source is me and my shoe leather!!!

I hold accounts in fixed deposits at both those banks after doing a great deal of research and visiting Siem Reap on no less than 15 occasions using a Cambodian translator to make sure I was totally correct on each point,,,!.... even though many of them speak English, the level varies.

[jpinx]

Thanks for that -- first-hand information is hard to come by

Was it possible to set up your initial account personally, and then do subsequent accounts by email/internet banking and swift transfer?

[Scouse123]

Hehehehehe,

I wish it was that easy!!

No, they don't allow that. Recently I wanted to add a THB account alongside the existing USD accounts and requested to do it via e mail copy and scan or online.

No to both ideas from both banks! In a nutshell, come to the bank in person!

I then inquired as to mobile banking ( which is possible ) however, they said my accounts were set up as " view only " I can withdraw outside Cambodia with an ATM but not move money around. I will be able to on my next visit where then I must also pay a fee and agree a quarterly fee for the service.

Incidentally, a lot of the information I gave are on their websites regards deposits, interest payments. I have a few Cambodian friends down there also ex-ANZ bank and now working at Maybank that also educated me on a number of points regards bank activities.

I learned other things like Acleda charging 14% tax on interest until you had been with them 6 months AFTER fulfilling all their legal requirements to open an account. Canadia is far easier to open an account and a strong bank. Acleda, you sometimes think just are not intersted whether you bank with them or not especially at branch level.

A lot of information on Acleda you can get by contacting them via their website. Wikipedia can tell you a lot about the Acleda set up and Canadia, although websites provide quite a lot of information.

You can even view Canadia head office, Canadia tower, on you tube!

[Oorinara]

Canadia's Internet banking enables opening and closing fixed deposits, domestic and international transfer (unsure about the amount limit), etc. Mobile app does similar, but to less functionality. Service applicable to USD and KHR accounts. THB accounts for viewing only.

https://www.cnbebanking.com/

ABA bank either.

https://www.ababank.com/business/internet-banking/internet-banking/

[jpinx]

All very interesting. I was looking for term deposits in different places to spread around a bit, I'm not a fan of all the eggs in one basket. Cambodia rates are good, but the same is available in western term deposits with BBB credit ratings, so the hassle factor of Cambodia is a bit of a downer.

[Scouse123]

All very interesting. I was looking for term deposits in different places to spread around a bit, I'm not a fan of all the eggs in one basket. Cambodia rates are good, but the same is available in western term deposits with BBB credit ratings, so the hassle factor of Cambodia is a bit of a downer.

OK,

Can you please tell me which triple B banks are available in the West paying these rates as I will certainly move if it is possible and without restrictions. I am a UK national.

[jpinx]

All very interesting. I was looking for term deposits in different places to spread around a bit, I'm not a fan of all the eggs in one basket. Cambodia rates are good, but the same is available in western term deposits with BBB credit ratings, so the hassle factor of Cambodia is a bit of a downer.

OK,

Can you please tell me which triple B banks are available in the West paying these rates as I will certainly move if it is possible and without restrictions. I am a UK national.

I can only suggest that you explore Standard and Poor's listings and/or some of the comparative rates websites for different countries. How you establish yourself with any bank will depend on their rules and your personal circumstances, so I can not comment on that. We're veering considerably off-topic now, but here's a few to get you started.

http://www.deposits.org/

http://www.ratecity.com.au

http://www.interest.co.nz

[Oorinara]

Better to narrow rates comparison into USD, widely circulated in Cambodia, and THB, wherein this forum is domiciled.

Btw, Acleda and Cambodia Public Bank have credit ratings from international credit rating agencies.

http://www.acledabank.com.kh/kh/eng/bp_creditrating

http://www.cpbebank.com/cpeb/index.html

[jpinx]

I mentioned the ratings issue previously, where Standard and Poors had to downgrade all the Cambodian banks to not better than the country's sovereign rating. Acleda claims a B rating, but I don't see it in Standard and Poors list.

[Oorinara]

Krubgsri to acquire HKL, microfinance deposit taker in Cambodia

https://www.krungsri.com/bank/en/NewsandActivities/Krungsri-Banking-News/Krungsri-acquire-HKL-leading-microfinance-Cambodia.html

[jpinx]

Krubgsri to acquire HKL, microfinance deposit taker in Cambodia

https://www.krungsri.com/bank/en/NewsandActivities/Krungsri-Banking-News/Krungsri-acquire-HKL-leading-microfinance-Cambodia.html

Isn't that microfinance a bit like the P2P finance arrangements you can do online now?

Another query - Has anyone got experience of transferring non US$ (for example €uros or AUS$) into one of these term deposit accounts at a Cambodian bank? What was the overall effect on the FX rate?

Edited January 31, 2016 by jpinx

[Oorinara]

Krubgsri to acquire HKL, microfinance deposit taker in Cambodia

https://www.krungsri.com/bank/en/NewsandActivities/Krungsri-Banking-News/Krungsri-acquire-HKL-leading-microfinance-Cambodia.html

Isn't that microfinance a bit like the P2P finance arrangements you can do online now?

Another query - Has anyone got experience of transferring non US$ (for example €uros or AUS$) into one of these term deposit accounts at a Cambodian bank? What was the overall effect on the FX rate?

Microfinance deposit taking institutions in Cambodia are more like banks. They take deposit, loan small enterprises and sole proprietaries, offer forex, transfer money domestically and have ATMs. Differences with banks are that, eg, they cannot issue credit card and have no SWIFT code for international wire.

[jpinx]

Krubgsri to acquire HKL, microfinance deposit taker in Cambodia

https://www.krungsri.com/bank/en/NewsandActivities/Krungsri-Banking-News/Krungsri-acquire-HKL-leading-microfinance-Cambodia.html

Isn't that microfinance a bit like the P2P finance arrangements you can do online now?

Another query - Has anyone got experience of transferring non US$ (for example €uros or AUS$) into one of these term deposit accounts at a Cambodian bank? What was the overall effect on the FX rate?

Microfinance deposit taking institutions in Cambodia are more like banks. They take deposit, loan small enterprises and sole proprietaries, offer forex, transfer money domestically and have ATMs. Differences with banks are that, eg, they cannot issue credit card and have no SWIFT code for international wire.

Sounds like a normal finance company then. How do they get international money in if they don't have a swift?

[Naam]

Krubgsri to acquire HKL, microfinance deposit taker in Cambodia

https://www.krungsri.com/bank/en/NewsandActivities/Krungsri-Banking-News/Krungsri-acquire-HKL-leading-microfinance-Cambodia.html

Isn't that microfinance a bit like the P2P finance arrangements you can do online now?

Another query - Has anyone got experience of transferring non US$ (for example €uros or AUS$) into one of these term deposit accounts at a Cambodian bank? What was the overall effect on the FX rate?

Microfinance deposit taking institutions in Cambodia are more like banks. They take deposit, loan small enterprises and sole proprietaries, offer forex, transfer money domestically and have ATMs. Differences with banks are that, eg, they cannot issue credit card and have no SWIFT code for international wire.

Sounds like a normal finance company then. How do they get international money in if they don't have a swift?

most probably via an account with a local bank with SWIFT access.

[jpinx]

Isn't that microfinance a bit like the P2P finance arrangements you can do online now?

Another query - Has anyone got experience of transferring non US$ (for example €uros or AUS$) into one of these term deposit accounts at a Cambodian bank? What was the overall effect on the FX rate?

Microfinance deposit taking institutions in Cambodia are more like banks. They take deposit, loan small enterprises and sole proprietaries, offer forex, transfer money domestically and have ATMs. Differences with banks are that, eg, they cannot issue credit card and have no SWIFT code for international wire.

Sounds like a normal finance company then. How do they get international money in if they don't have a swift?

most probably via an account with a local bank with SWIFT access.

That was my guess too, but I was hoping for some first hand experience.

[Oorinara]

Microfinance institutions do have accounts with commercial banks. When you send money from abroad, you do so first to microfinance's accounts with a commercial bank, and then ask microfinance to account it into your account with microfinance. Money is fungible, but account isn't.

Sending money to abroad is the other way around.

Microfinance institutions don't have online banking, so over-the-counter transaction is inevitable for the time being.

Edited February 4, 2016 by Oorinara

[Scouse123]

Some microfinance can accept deposits and some cannot.It depends if they reach the Cambodian central banks criteria.

If they do not. They can lend and accept repayments and interest but not accept customer deposits.

The central bank, has a few times increased the amounts which must be lodged as security with the central bank to strengthen consumer confidence from outside and inside the country.