Opening a Foreign Currency Account in Chiang Mai

[WillG]

I have posted this to Chiang Mai forum as it relates specifically to opening a bank account in Chiang Mai.

 

I plan to retire in Chiang Mai and have trawled the forums for info on many things that I will need to look at before this happens.

Obviously I will need to open bank accounts for future condo purchase, 800k deposit and general everyday but firstly I would like a Foreign Currency Account ($A) as this seems to be the consensus on the best method to have funds transferred.

 

Below is straight off the Bangkok Bank web site:

“Whether you’re a foreigner or Thai national, you can open a foreign currency deposit account in any of 14 currencies”

It also states “Foreign Tourists” will need a passport and:

“A letter of recommendation from a person acceptable to Bangkok Bank such as a Bangkok Bank staff member, a respected customer of Bangkok Bank, a respected university teacher, a respected company director or senior executive. This must be on the form provided by Bangkok Bank (this can be obtained from any Bangkok Bank branch which provides a foreign currency deposit account service) and it must be accompanied by a certified true copy of the identification document e.g. ID card or government official ID card of the person making the recommendation;

or A letter of recommendation from a reputable organization located in Thailand such as an embassy or an international organization;

or A letter of recommendation from your bank abroad, acceptable to Bangkok Bank, sent to Bangkok Bank via SWIFT;

or Your driver’s license containing your photo and address”

 

Does anybody know what branch(s) in Chiang Mai can open a FCA, as this will be required to get the SWIFT code for that branch for the “letter of recommendation” to be sent via SWIFT

or is easier to get said recommendation from Australian Embassy (means visit Bangkok ?)

or can one establish contact with an existing customer somehow ?

 

I thought perhaps this is just a bureaucratic beat up, as I have read here anyone can essentially just trawl the banks until you find one that will open an account for you ... if this is the case does anyone have relevant info on what is best to do re opening a FCA in Chiang Mai … specifically $A, with the least hassle possible? Thanks

 

[Thighlander]

If you have a long stay visa; you won't have to go trawling, that's usually for people on Tourist Visa.  However, TMB will require a Work Permit..so just ignore them.  ALso, from what I've read....they get you for more fees on FCA, than doing a regular wire...also, the interest on THB accounts can be double or triple or quadruple.....and when you go to change it into THB, periodically, your rate will be about .7% less than the TT rate.  I've brought mine over in chunks of 150-200K (except for the condo purchase), no regrets.  Getting 2.3% at Krungsri Airport Plaza, and apparently they are perfectly capable of writing the letter to immigration....interest is paid monthly, and no withholding on the first 20,000 in interest.  BKK time deposits are paying 2.8% for an 11 month, but they with-hold 15%....so that brings you down to 2.38%....It's worth it to me to not have to file income taxes in Thailand....plenty of thrills doing it in the US.

[kjhbigv]

Get yourself a standard current account first with BKK Bank, then later go and open an FCA. I have a foreign currency account with them.

 

You can (obviously) transfer money directly into it from your home bank and can transfer from the FCA into the thai account when required, you can do this all online as well with BKK Bank ie. transferring from the FCA (which holds your home currency) to any of your thai accounts.

 

[Maestro]

Check with your home bank if Bangkok Bank is their correspondent bank. If it is, they will know how to send their recommendation via the SWIFT network.

[elgordo38]

If you earn less than 100,000 bahts a year you can register with the tax office and get the 15% withholding tax back.

[WillG]

Hi All

 

Thanks for the feedback

 

Thailander: I have taken on board the possible fees in transferring from FCA into THB. Looking at the Bangkok Bank web site the interest rate on an $A FCA is 2.5% and in THB savings account it is 0.5% but I will clarify that on opening account. I will be transferring something like $A250K so fees and the TT rate will be significant.

 

Kghbigv: A good idea to open THB account in first instance. Thanks

 

Maestro: Looking further into BB web site I came across that a letter of recommendation from your home bank addressed to Bangkok Bank is suitable after all (doesn’t have to go via SWIFT)

 

Something else to consider:

 

I will be initially arriving on a 30 day tourist visa to suss out condo purchase, open bank account, find somewhere to live in the meantime and generally get the lay of the place (although I have been there before) then go back to Australia for a few months, get myself organised for the move, then return to Chiang Mai on an OA visa and go through the business of extension for retirement from there.

 

I will stay at a hotel (or perhaps a guest house) for that first visit but evidently the bank requires evidence of your address in Thailand and a hotel address or PO boxes are not acceptable.

 

So how does one overcome the problem of opening an account and NOT having a local address except hotel that may acceptable to the bank?

 

Does anyone have any personal experience (there must be many) of opening an account (I am looking at Bangkok Bank but open to suggestions).

 

Maybe someone knows a friendly bank manager.

[WillG]

Apologies ... that should be Thighlander

[Thighlander]

You could possibly be running into an obstacle on purchasing condo with Tourist Visa, if those are your intentions.  You also will need to show where the funds for purchase originated.....so you might want to wait until you have a deal, because the land office will require a letter specific to that transaction.  Say you wire over 8 million, now, and buy a condo in three months for 1 million......it might get tricky if you want to pay with your existing deposit.

 

Also, say you were converting AUD, today.  BKK Bank will give you 29.19, however, you would get 29.55 on a TT.  That's 1.23% more.....so on 250,000 AUD, that would be 90,000 THB...........

 

Is your thinking that the AUD will significantly strengthen?  What interest rate do you get on regular savings in Oz? 

[Diplomatico]

Regarding opening a bank account, I opened one while staying in a guesthouse (though I already had a visa in hand). I simply put the address of the guesthouse as my address - the bank didn't require anything to verify. When you get a more permanent address, you go back and do an address change. That was with Bangkok Bank.

[WillG]

You could possibly be running into an obstacle on purchasing condo with Tourist Visa, if those are your intentions.  You also will need to show where the funds for purchase originated.....so you might want to wait until you have a deal, because the land office will require a letter specific to that transaction.  Say you wire over 8 million, now, and buy a condo in three months for 1 million......it might get tricky if you want to pay with your existing deposit.

 

Also, say you were converting AUD, today.  BKK Bank will give you 29.19, however, you would get 29.55 on a TT.  That's 1.23% more.....so on 250,000 AUD, that would be 90,000 THB...........

 

Is your thinking that the AUD will significantly strengthen?  What interest rate do you get on regular savings in Oz? 

 

I plan to return on an OA after the tourist visa and purchase after I have retirement extention ...no rush required (I have been looking at the posts in  "Real Estate Bubble").... but I get your point about the specific transaction and that makes sense and its something else to be aware of.

 

Yes I see the difference in rates on BKK web site and 90k difference is not to be sneezed at

 

The going savings account rate here in Oz is around 2.0 - 2.5% but I am getting 4% at the moment (not term deposit). Inflation is steadily increasing here so I see interest rates rising soon which may strenghen the $A but the days of parity with $US are over I reckon. I traded fourex full time for a couple of years so you can take whatever I think with a large grain of salt (its not easy)

[WillG]

Regarding opening a bank account, I opened one while staying in a guesthouse (though I already had a visa in hand). I simply put the address of the guesthouse as my address - the bank didn't require anything to verify. When you get a more permanent address, you go back and do an address change. That was with Bangkok Bank.

 

That's good to know ... Cheers

[kjhbigv]

When was this though? Recently?

I think the OP might have difficulty opening an account with a 30 day visa exempt entry, which I think is what he meant when he said "30 day tourist visa"