Santander now 1% - Bangkok Bank 2.80% - Two birds with one stone ?

[ThaiLife]

Ive held an offshore savings account with Alliance & Leicester , Isle of Man ( now run by Santander ) for over 10 years and I am for UK tax purposes registered as a '' Non Resident '' so receive the Santander monthly interest tax free .

I am retired and live full time in Thailand with my Thai wife and currently extend my visa every year using 400,000 Baht in my normal Bangkok Bank Savings account .

Ive just received this letter from Santander

The monthly interest from the Santander account is paid directly into my UK bank and then I normally transfer the interest to my bangkok bank standard savings account every 6 months , this accrued interest just tops up my normal Bangkok Bank saving account .

Now the Santander interest rate has just beed reduced to 1% , I am thinking of doing this

Opening a Fixed Deposit 11 Month Account with Bangkok Bank , currently paying 2.80% , that account will not be accessed unless an emergency situation arises and it will be left to run its full term .

I would change my current visa extension application from married to a Thai national , 400,00 Baht in my Bangkok Bank savings account , to a retirement application , 800,000 + in the new Fixed Deposit 11 Month Account with Bangkok Bank.

Obtain a refund of tax withheld on the Fixed Deposit 11 Month Account with Bangkok Bank , using the Kor 10 form supplied by Bangkok Bank .

So doing this would kill 2 birds with one stone , an increase in bank account interest rate and use the Fixed Deposit bank account for my retirement visa extension requirement.

I currently have no income from within Thailand

Any thoughts , constructive comments or advice on my above idea please .

TL

[KittenKong]

Depending on your circumstances you could get a much better rate than 1% onshore. Even offshore for that matter.

[paddyjenkins]

I recently moved some GBP from nationwide Isle of Man as their rate was just stupidly low...can get much better elsewhere than the crap being offered by some of these places. Even 1.5% instant access in some accounts much better than the 0.5 that nationwide is giving in their instant access account. Obviously even 1.5 is pathetic as an investment but it's just spare cash and better than 0.5. And the idiots in nationwide actually had to ask me why I was taking the money out....how dumb are they?

[fletchsmile]

Makes sense to me to build some THB assets, particularly income generating assets if you're going to live in Thailand. So moving the money will get you a better interest and reduce your currency risk.

No need to change your visa status at all. There's no problem with showing an account with more than 400k in for an extension based on marriage. So if you feel 800k is the right amount for you then have 800k in the account and keep your marriage extension. Plus, you never know when they might move the thresholds, and often they will grandfather in the old level. You never know when circumstances change.

Also make sure that your 11m won't expire just before your next visa is due, as there is a seasoning rule, it has to have been there for at least 2(?) months before visa is extended.

2.8% is a pretty decent rate at the moment. But check out the pinned thread on interest rates.

Cheers

Fletch

[JackisBack]

Makes sense to me to build some THB assets, particularly income generating assets if you're going to live in Thailand. So moving the money will get you a better interest and reduce your currency risk.

No need to change your visa status at all. There's no problem with showing an account with more than 400k in for an extension based on marriage. So if you feel 800k is the right amount for you then have 800k in the account and keep your marriage extension. Plus, you never know when they might move the thresholds, and often they will grandfather in the old level. You never know when circumstances change.

Also make sure that your 11m won't expire just before your next visa is due, as there is a seasoning rule, it has to have been there for at least 2(?) months before visa is extended.

2.8% is a pretty decent rate at the moment. But check out the pinned thread on interest rates.

Cheers

Fletch

Thats an interesting idea

Edited August 19, 2014 by JackisBack

[ThaiLife]

Makes sense to me to build some THB assets, particularly income generating assets if you're going to live in Thailand. So moving the money will get you a better interest and reduce your currency risk.

No need to change your visa status at all. There's no problem with showing an account with more than 400k in for an extension based on marriage. So if you feel 800k is the right amount for you then have 800k in the account and keep your marriage extension. Plus, you never know when they might move the thresholds, and often they will grandfather in the old level. You never know when circumstances change.

Also make sure that your 11m won't expire just before your next visa is due, as there is a seasoning rule, it has to have been there for at least 2(?) months before visa is extended.

2.8% is a pretty decent rate at the moment. But check out the pinned thread on interest rates.

Cheers

Fletch

Thanks for the advice , its appreciated

Sorry this may sound more like a visa question rather than a banking question.

So I move the majority funds from my Santander Bank account ( leaving a minimum amount in the account to keep it active ) to a new Bangkok Bank Fixed Deposit Account . Then use the fixed deposit account for my '' marriage '' visa extension application. Having never before in the past had more that around 500,000 Baht in my Bangkok Bank saving account at the time I applied for the marriage visa extension, would the fact that the next time I submit my visa extension application using a fixed term deposit account , and the account could be showing several million baht , would the immigration not question as to why I am still using the marriage route ( 400,000 Baht ) instead of the retirement route , when my fixed term deposit account has ample funds for the 800,000 Baht requirement .

TL

[rgs2001uk]

^^^^^,

do the extension that suits you, for some officers/offices a retirement visa is easy. less paperwork and can be stamped there and then

If you are married, its a bit more of a hassle, but just as easy, go for a married mans extension.

Where will you be doing your extension?

Be aware different offices have their own interpretation of the rules.

Too be honest, if you are dealing with competant staff it shouldnt be a problem.

[Pib]

Immigration wouldn't care...they just confirm you meet the "minimum in the bank amount" for the type of extension you are applying for.

[rgs2001uk]

Open two accounts, one for visa extension with lets say 500k in it, and the rest in another account, couldnt be easier.

[pontious]

Depending on your circumstances you could get a much better rate than 1% onshore. Even offshore for that matter.

The OP is non resident - onshore is nearly impossible to open. Can't find any offshore that are 'much better'.

[AyG]

One factor that hasn't been mentioned so far is exchange rate. It might be the case that in a few months time the exchange rate moves so that you actually get more Baht for your money than if you transfer now, even factoring in the interest. However, you also might get significantly less if the exchange rate moves in the opposite direction. (Exchange rate swings of 20+% in a year are fairly common, swamping the effect of differences in interest rates between currencies.)

Personally, I keep 3-4 years' worth of living expenses in Baht so I can choose when I make transfers from Sterling. This flexibility means I don't ever have to make a transfer when I feel the exchange rate is temporarily particularly unfavourable.

As for retirement funds for Immigration purposes, rather than use fixed deposits, I use Krung Sri's Mee Tae Dai savings account. It currently pays 2.3% on balances up to 10 million. Not quite as good as the Bangkok Bank 11 month fixed, but I don't have to worry about rollovers and seasoning the money for Immigration. For me the peace of mind is worth the loss of a small amount of interest income. The account allows 2 withdrawals per month free of charge.

Full details of the account at http://www.krungsri.com/en/consumer-detail.aspx?did=195⊂=true

[ThaiLife]

One factor that hasn't been mentioned so far is exchange rate. It might be the case that in a few months time the exchange rate moves so that you actually get more Baht for your money than if you transfer now, even factoring in the interest. However, you also might get significantly less if the exchange rate moves in the opposite direction. (Exchange rate swings of 20+% in a year are fairly common, swamping the effect of differences in interest rates between currencies.)

Personally, I keep 3-4 years' worth of living expenses in Baht so I can choose when I make transfers from Sterling. This flexibility means I don't ever have to make a transfer when I feel the exchange rate is temporarily particularly unfavourable.

As for retirement funds for Immigration purposes, rather than use fixed deposits, I use Krung Sri's Mee Tae Dai savings account. It currently pays 2.3% on balances up to 10 million. Not quite as good as the Bangkok Bank 11 month fixed, but I don't have to worry about rollovers and seasoning the money for Immigration. For me the peace of mind is worth the loss of a small amount of interest income. The account allows 2 withdrawals per month free of charge.

Full details of the account at http://www.krungsri.com/en/consumer-detail.aspx?did=195⊂=true

Thanks for the comment

In the past when it came time to transfer the Santander accrued interest amount from my UK bank to my Thai bank , the exchange rate was never that favorable , so the exchange rate is a factor to be concerned about .

Ive had a look at the Krung Sri Mee Tae Dai savings account information from the link you kindly provided , I cannot see any mention of a tax liability and of course the current 2.3% could go down , where as a fixed deposit account say for 11 months the interest rate is guaranteed for that period and any interest can be claimed back.

When you applied for the Krung Sri Mee Tae Dai savings account , what sort of information / paper work did you have to supply ?

The Krung Sri Mee Tae Dai savings account does look an easier option to maintain and use for immigration purposes

TL

[AyG]

Ive had a look at the Krung Sri Mee Tae Dai savings account information from the link you kindly provided , I cannot see any mention of a tax liability and of course the current 2.3% could go down , where as a fixed deposit account say for 11 months the interest rate is guaranteed for that period and any interest can be claimed back.

When you applied for the Krung Sri Mee Tae Dai savings account , what sort of information / paper work did you have to supply ?

All account interest is liable to income tax. There are a few accounts which pay interest gross. These are clearly identified in the promotional literature. This isn't one of them, and tax at 15% will be withheld. If you're a non-tax payer you can reclaim the tax at the end of year. The Bangkok Bank 11 month account is the same.

One advantage of the variable rate with Mee Tae Dai is that the rate can increase, which in the current, low interest rate environment, is much more likely than a decrease. With a fixed deposit, the interest rate is, well ... fixed.

The paperwork requirements are available at https://www.krungsri.com/inc/download.aspx?file=../download/MediaFile_48Deposit_Current_Account.pdf . For me, all that was needed was my passport.

[Pib]

Ive had a look at the Krung Sri Mee Tae Dai savings account information from the link you kindly provided , I cannot see any mention of a tax liability and of course the current 2.3% could go down , where as a fixed deposit account say for 11 months the interest rate is guaranteed for that period and any interest can be claimed back.

When you applied for the Krung Sri Mee Tae Dai savings account , what sort of information / paper work did you have to supply ?

All account interest is liable to income tax. There are a few accounts which pay interest gross. These are clearly identified in the promotional literature. This isn't one of them, and tax at 15% will be withheld. If you're a non-tax payer you can reclaim the tax at the end of year. The Bangkok Bank 11 month account is the same.

One advantage of the variable rate with Mee Tae Dai is that the rate can increase, which in the current, low interest rate environment, is much more likely than a decrease. With a fixed deposit, the interest rate is, well ... fixed.

The paperwork requirements are available at https://www.krungsri.com/inc/download.aspx?file=../download/MediaFile_48Deposit_Current_Account.pdf . For me, all that was needed was my passport.

Where you say, "All account interest is liable to income tax", do you mean specifically to this particular Krungsri product or to all Thai bank savings accounts?

For a regular Thai bank savings account like comes with a debit card, you can withdrawal as many times as wanted, etc., and is paying around 0.50% at most Thai banks interest is not withheld until supposedly you exceed 20,000 baht interest per year in that account which is expect most regular savings accounts reach that level of interest paid per year.

Since you have one of these accounts have they been withholding interest? And if 15% withholding tax was withheld was it for interest earned that was more or less than 20K baht total?

At this Krungsri interest rate webpage when you download/open the latest interest rate document and go to Para 10 where it talks the Mee Tai Dai product in says it subparagraph 10.10, "The calculation of the interest tax is as per the regulations/conditions of the Revenue Department." Not sure what that really means...does it mean 15% of any interest earned withheld or just when you exceed 20K baht like with a regular savings account.

I've been thinking about opening such an account for a while instead of just having all Bangkok Bank regular and fixed savings accounts. Thanks.

Edited August 20, 2014 by Pib

[ThaiLife]

Ive had a look at the Krung Sri Mee Tae Dai savings account information from the link you kindly provided , I cannot see any mention of a tax liability and of course the current 2.3% could go down , where as a fixed deposit account say for 11 months the interest rate is guaranteed for that period and any interest can be claimed back.

When you applied for the Krung Sri Mee Tae Dai savings account , what sort of information / paper work did you have to supply ?

All account interest is liable to income tax. There are a few accounts which pay interest gross. These are clearly identified in the promotional literature. This isn't one of them, and tax at 15% will be withheld. If you're a non-tax payer you can reclaim the tax at the end of year. The Bangkok Bank 11 month account is the same.

One advantage of the variable rate with Mee Tae Dai is that the rate can increase, which in the current, low interest rate environment, is much more likely than a decrease. With a fixed deposit, the interest rate is, well ... fixed.

The paperwork requirements are available at https://www.krungsri.com/inc/download.aspx?file=../download/MediaFile_48Deposit_Current_Account.pdf . For me, all that was needed was my passport.

Thanks again your comments / advice / link , its appreciated

Just read this comment in another thread ( http://www.thaivisa.com/forum/topic/731112-best-interest-rates-on-fixed-deposit-account/ Post #14 )

Krung Sri Mee Tae Dai savings account

Posted 2014-06-02 19:59:20

Started with Ayudhya Mee Tae Dai account more than a year..or two? ago at 2.8%

Down now to 2.35% but I am still with them for ease.

Here is why

1- It is not a fixed account

2- web access/transfers etc.

May make two transactions per month free

3- More than two is 50 baht per

( I dont use these as working accounts so no problem for me )

4- Interest paid monthly not bi-annually like most

5- No taxes taken out period

Note: Taxes are automatic on fixed accounts & yes you may reclaim them &

I have on other accounts at BKB previously. But Ayudyha not being fixed does not have a tax

But realize any account in Thailand fixed or not that receives more than 20k baht per year will be taxed

But with Ayudyha if you approach the 20k per year interest allowed tax free in not-fixed account

they let you open another Mee Tae Dai account & transfer. They have even reminded me at times to do so.

Hard to beat for me & I like that monthly interest I see put in my accounts each month.

Of course if at such time it gets much lower than others....Then I might put up

with a fixed account & its taxes/reclaiming etc.

TL

[Pib]

TL,

Thanks for the clarification on the "tax issue." I had just finished asking AyG in a slightly earlier post than yours the question about how the account handles tax since the KrungSri site didn't answer the question to my satisfaction.

I just may open one of these suckers in early Sep on the same day I go to Bangkok immigration to do my yearly retirement extension of stay. Just go to the KrungSri branch downstairs of immigration...right next to the Bangkok Bank branch where I have been doing my fixed accounts and where I currently have a 15 month fixed account paying 3.25%.

Pib

[AyG]

Where you say, "All account interest is liable to income tax", do you mean specifically to this particular Krungsri product or to all Thai bank savings accounts?

For a regular Thai bank savings account like comes with a debit card, you can withdrawal as many times as wanted, etc., and is paying around 0.50% at most Thai banks interest is not withheld until supposedly you exceed 20,000 baht interest per year in that account which is expect most regular savings accounts reach that level of interest paid per year.

Since you have one of these accounts have they been withholding interest? And if 15% withholding tax was withheld was it for interest earned that was more or less than 20K baht total?

I've been thinking about opening such an account for a while instead of just having all Bangkok Bank regular and fixed savings accounts. Thanks.

My understanding is that all Thai bank account interest is potentially subject to income tax.

For some types of account, if you provide your Tax ID Number interest will be paid gross, and (presumably) the tax man will be informed of how much interest you've received to make sure there's no tax avoidance.

In my experience, there's no "zero tax until you hit 20,000 Baht/year interest" account; for all of my savings and deposit accounts (that's with four different banks), 15% tax is withheld. I suspect there is a common misunderstanding based upon the rule that one can receive 20,000 Baht in interest where tax has been withheld at 15% and not declare it in one's annual tax return. Otherwise one has to declare it on one's tax return and pay tax on it at the appropriate rate.

Note that any tax withheld can be reclaimed should your total income be less than the appropriate tax threshold.

[Pib]

Where you say, "All account interest is liable to income tax", do you mean specifically to this particular Krungsri product or to all Thai bank savings accounts?

For a regular Thai bank savings account like comes with a debit card, you can withdrawal as many times as wanted, etc., and is paying around 0.50% at most Thai banks interest is not withheld until supposedly you exceed 20,000 baht interest per year in that account which is expect most regular savings accounts reach that level of interest paid per year.

Since you have one of these accounts have they been withholding interest? And if 15% withholding tax was withheld was it for interest earned that was more or less than 20K baht total?

I've been thinking about opening such an account for a while instead of just having all Bangkok Bank regular and fixed savings accounts. Thanks.

My understanding is that all Thai bank account interest is potentially subject to income tax.

For some types of account, if you provide your Tax ID Number interest will be paid gross, and (presumably) the tax man will be informed of how much interest you've received to make sure there's no tax avoidance.

In my experience, there's no "zero tax until you hit 20,000 Baht/year interest" account; for all of my savings and deposit accounts (that's with four different banks), 15% tax is withheld. I suspect there is a common misunderstanding based upon the rule that one can receive 20,000 Baht in interest where tax has been withheld at 15% and not declare it in one's annual tax return. Otherwise one has to declare it on one's tax return and pay tax on it at the appropriate rate.

Note that any tax withheld can be reclaimed should your total income be less than the appropriate tax threshold.

Thanks. On all my Bangkok Bank "regular" savings accounts, single and joint account, interest has never been withheld but I've never had enough money in any of these regular savings accounts to earn over Bt20K interest per year. However on the half dozen of so Bangkok Bank "fixed" accounts I've had/have, the 15% withholding tax occurs on any amount of interest earned...even when far below Bt20K interest earned. I've been reclaiming that 15% withheld interest yearly at my local Thai tax revenue office...easy process...takes 2 to 6 weeks to get the refund.

Just as FYI for anyone else considering the Mee Tai Dai KrungSri saving account, below is a quote from their web page which gives a little more info...you can open an account with as little as Bt500. But the sweet spot to earn the maximum interest is having a balance from Bt100K to Bt10M. Yeap, I just may open one of these come early September...start with Bt100K.

Plus, it seems Bangkok Bank is now possibly switching to the type of fixed account promotion where to get the best interest rate it can not be money just rolled over/transferred from another Bangkok Bank account; instead, it must be new money to Bangkok Bank. So, if Thai banks are going to start playing that game and if a person wants to have more than just one bank, then having an account with another bank may be helpful...also provides additional deposit protection coverage in case the Thai banking system has another financial meltdown like in the late 1990's.

[ThaiLife]

Thanks guy's for the information

I was thinking of moving some funds from my Santander bank account into a new Mee Tai Dai KrungSri saving account and that moved amount should earn more than 20,000 Baht interest in one year, so to have the interest paid '' gross '' I would have to obtain a tax ID number ? , so its not possible to do this as shown in my other post ....... ...

[ But with Ayudyha if you approach the 20k per year interest allowed tax free in not-fixed account

they let you open another Mee Tae Dai account & transfer. They have even reminded me at times to do so. ]

Now I'm confused

[Pib]

Thanks guy's for the information

I was thinking of moving some funds from my Santander bank account into a new Mee Tai Dai KrungSri saving account and that moved amount should earn more than 20,000 Baht interest in one year, so to have the interest paid '' gross '' I would have to obtain a tax ID number ? , so its not possible to do this as shown in my other post ....... ...

[ But with Ayudyha if you approach the 20k per year interest allowed tax free in not-fixed account

they let you open another Mee Tae Dai account & transfer. They have even reminded me at times to do so. ]

Now I'm confused

You wouldn't need a tax ID initially, but if and when you decide to apply to any tax withheld for tax a tax ID would be issued to you on your first filing for a refund. However, the tax revenue office didn't get around to giving me a tax ID until the second year I filed for whatever reason. I think the tax ID is a non-player.

I seen on Bangkok Bank website somewhere before that if you give them your tax ID you might be able to get a waiver on the withholding tax but I've seen a few posts of people who run this up the Bangkok Bank flagpole and it didn't result in stopping the tax withholding "whenever it suppose to be applied" like on a traditional fixed account where 15% is withheld/sent to the govt and they you must apply for a refund in Jan-Mar, which is an easy process....it's not like you are filing a tax return or anything...it's more just a refund request.

[ThaiLife]

Thanks guy's for the information

I was thinking of moving some funds from my Santander bank account into a new Mee Tai Dai KrungSri saving account and that moved amount should earn more than 20,000 Baht interest in one year, so to have the interest paid '' gross '' I would have to obtain a tax ID number ? , so its not possible to do this as shown in my other post ....... ...

[ But with Ayudyha if you approach the 20k per year interest allowed tax free in not-fixed account

they let you open another Mee Tae Dai account & transfer. They have even reminded me at times to do so. ]

Now I'm confused

You wouldn't need a tax ID initially, but if and when you decide to apply to any tax withheld for tax a tax ID would be issued to you on your first filing for a refund. However, the tax revenue office didn't get around to giving me a tax ID until the second year I filed for whatever reason. I think the tax ID is a non-player.

I seen on Bangkok Bank website somewhere before that if you give them your tax ID you might be able to get a waiver on the withholding tax but I've seen a few posts of people who run this up the Bangkok Bank flagpole and it didn't result in stopping the tax withholding "whenever it suppose to be applied" like on a traditional fixed account where 15% is withheld/sent to the govt and they you must apply for a refund in Jan-Mar, which is an easy process....it's not like you are filing a tax return or anything...it's more just a refund request.

Thanks again Pib

So if I go down the Bangkok Bank Fixed Deposit Account ( 11 month term ) route

1. The interest is currently at 2.80%

2. I cannot access the money with out penalties

3. Interest fixed for 11 month duration

4. I can get a refund of the tax withheld using the Kor 10 form

5. I can add to the account after opening but the minimum amount is 100,000 Baht

6. once the account has reached its 11 month end , the account will roll over automatically to a three month fixed term deposit account.

7. The fixed term deposit account could be used for immigration purposes ( once confirmed at the local immigration office )

or go the

Mee Tai Dai KrungSri saving account route

1. Interest currently 2.30 %

2. I can access the account twice in a month without any penalties

3. Interest rate is variable , could go up / down

4 . I can get a refund of the tax withheld using the Kor 10 form

5. I can add to the account at any time / any amount

6. The account has no end of life period

7. The account can be used for immigration purposes ( Savings Account )

Have I got this right , or am I missing some thing

[Pib]

TL,

Regarding the Bangkok Bank fixed account I would just recommend if your were going to make one BiG opening deposit, for example say you were going to put in at least Bt800K say for a retirement extension of stay, to make that deposit in two or more transactions....say a Bt500K and a Bt300K....that way if you need to access some of the funds due to an emergency need for m money (say you needed Bt200K right now!!!), you could do the Bt200K withdrawal against the Bt300K deposit and only lose interest against that Bt300K deposit...the Bt500K deposit remain unaffected/no loss of interest. That's what I did on my last Bangkok Bank fixed account rollover...when my fixed account matured I just rolled the who Bt800K plus amount into another Bangkok Bank fixed account (the 15 month, 3.25% promotion available at the time)...I just instructed the clerk to roll the money over as two deposits...a Bt500K deposit and then the remaining Bt300K plus amount as the second deposit. And yes, just claim a refund for the 15% interest earned withholding at your local tax office.

Regarding the Mai Tai Dai KrungSri account, my understand there is no withholding tax applied as long as you don't exceed Bt20K in interest earned per year based on what I've read some ThaiVisa posters say and I don't see the KrungSri website point out a 15% interest withholding regardless of the amount of interest earned ...if that was going to occur then maybe you should open a second account to split up the interest earned. But even if interest is withheld then you could claim for a refund at your local tax office. I wish the KrungSri website had more detailed info. When it come to detail/info in Thai and correct English the Bangkok Bank website doesn't have a close second among Thai bank websites.

Pib

[ThaiLife]

TL,

Regarding the Bangkok Bank fixed account I would just recommend if your were going to make one BiG opening deposit, for example say you were going to put in at least Bt800K say for a retirement extension of stay, to make that deposit in two or more transactions....say a Bt500K and a Bt300K....that way if you need to access some of the funds due to an emergency need for m money (say you needed Bt200K right now!!!), you could do the Bt200K withdrawal against the Bt300K deposit and only lose interest against that Bt300K deposit...the Bt500K deposit remain unaffected/no loss of interest. That's what I did on my last Bangkok Bank fixed account rollover...when my fixed account matured I just rolled the who Bt800K plus amount into another Bangkok Bank fixed account (the 15 month, 3.25% promotion available at the time)...I just instructed the clerk to roll the money over as two deposits...a Bt500K deposit and then the remaining Bt300K plus amount as the second deposit. And yes, just claim a refund for the 15% interest earned withholding at your local tax office.

Regarding the Mai Tai Dai KrungSri account, my understand there is no withholding tax applied as long as you don't exceed Bt20K in interest earned per year based on what I've read some ThaiVisa posters say and I don't see the KrungSri website point out a 15% interest withholding regardless of the amount of interest earned ...if that was going to occur then maybe you should open a second account to split up the interest earned. But even if interest is withheld then you could claim for a refund at your local tax office. I wish the KrungSri website had more detailed info. When it come to detail/info in Thai and correct English the Bangkok Bank website doesn't have a close second among Thai bank websites.

Pib

Pib , thanks for taking the time to post a reply

I'm currently a long term customer ( 10 years + ) of Bangkok Bank , having just only one normal savings account with them ( I hold no other Thai bank accounts ) and I have never had a problem in dealing with my local Bangkok Bank branch.

Ive just spotted this requirement for opening any new Bangkok Bank fixed deposit accounts ..................

The funds for opening the account must not have been transferred or withdrawn from an existing Bangkok Bank account.

so for me this may be a problem ?

I am planning to go to my Bangkok Bank Branch with a list of questions relating to opening a fixed deposit account and see what they say , and I am planning at the same time to visit an Ayudhya bank and ask some questions about their Mai Tai Dai KrungSri account , and I will post back how I get on

My original idea was to open one account ( a fixed deposit account ) and deposit 3M + , which should generate more than the 20,000 Baht amount in interest limit , so I would then have to only claim back the tax from one account and that one account would all so be used for my marriage visa extension requirement .

My current Bangkok Bank normal savings account is used for every day living and would be topped up on regular basis with the interest from the new fixed deposit account.

But your idea of splitting up the funds into to several new fixed deposit accounts , and claim the tax back for each individual account , makes sense and gives the opportunity that in an emergency I would only loose interest from one fixed deposit account .

The same idea of splitting up the funds into several separate accounts ( Mai Tai Dai KrungSri account ) should the account be subject to a withholding tax regardless of the amount of interest earned , may also be an option .

I fully agree with your comment ....

I wish the KrungSri website had more detailed info. When it come to detail/info in Thai and correct English the Bangkok Bank website doesn't have a close second among Thai bank websites.

TL

[Pib]

TL,

Believe it or not, I just logged back on to also mention that current Bangkok Bank 11 month, 2.8% promotion is different from similar promotions in that "new money so to speak" must be used for the deposit but you beat me to the punch. You "can not" use money from another Bangkok Bank account.

This is why I mentioned in my post #18 that this is another reason of several why I may open a bank account with another Thai bank like KrungSri so I could keep and pull money from there. If Bangkok Bank wants to play this game of only accepting "new money" for certain accounts, I guess when my current Bangkok Bank fixed account matures later this year and if the best promotional at the time requires new money, then I would just take the money from that matured account and put in in my other Thai bank account (i.e., KrungSri, K-bank, SCB, whoever) for a short while (maybe even just for a few days), then walk back into Bangkok Bank a little later on and open that 11 month, 2.8% account with money transferred from the other Thai bank. Yea, if they want to play that game I guess I can too...plus having an account with another Thai bank offers other benefits also...kinda like the ol' saying of, "Don't Keep All of Your Eggs in One Basket."

Pib

Edited August 20, 2014 by Pib

[sfokevin]

One dumb question... Doesn't Immigration require that the funds held in a Thai bank account (400K or 800K) be from a foreign source?...

So if you start transferring from one Thai bank to another how do you prove to immigration that the funds in the bank are from a foreign source?

Edited August 20, 2014 by sfokevin

[ThaiLife]

One dumb question... Doesn't Immigration require that the funds held in a Thai bank account (400K or 800K) be from a foreign source?...

So if you start transferring from one Thai bank to another how do you prove to immigration that the funds in the bank are from a foreign source?

When ever ive used my Bangkok Bank savings account for my married to a Thai National visa extension, the immigration have never asked me where the money in the account comes from , In the past I did transfer some money from the UK to my Bangkok Bank savings account and that international transfer was shown in my bank book , so may be thats what the immigration office saw , I never really thought of it before

As for .... So if you start transferring from one Thai bank to another how do you prove to immigration that the funds in the bank are from a foreign source? , good question

[ThaiLife]

This shows '' Tax free interest ( not exceeding 20,000 Baht per annum )

http://www.ghbank.co.th/en/services_loan_detail.php?cms_id=63&cms_cate_id=6&parent=services_loan.php?cms_cate_id=6

[Pib]

One dumb question... Doesn't Immigration require that the funds held in a Thai bank account (400K or 800K) be from a foreign source?...

So if you start transferring from one Thai bank to another how do you prove to immigration that the funds in the bank are from a foreign source?

No. However, I've seen a few posts where some immigration officers apparently did ask for more details on where the money came from in trying to smoke-out those who may be borrowing/getting the money short term (say 3 months) from a loan shark/family member/friend/etc., and and then after getting the extension the money is withdrawn from the account. But those cases seem to be the exception.

Edited August 20, 2014 by Pib

[howzat]

Also don't forget if you are retired in Thailand and have no Thai earnings to pay tax on your withholding tax on your savings can be reclaimed back.

[route8]

Thanks guy's for the information

I was thinking of moving some funds from my Santander bank account into a new Mee Tai Dai KrungSri saving account and that moved amount should earn more than 20,000 Baht interest in one year, so to have the interest paid '' gross '' I would have to obtain a tax ID number ? , so its not possible to do this as shown in my other post ....... ...

[ But with Ayudyha if you approach the 20k per year interest allowed tax free in not-fixed account

they let you open another Mee Tae Dai account & transfer. They have even reminded me at times to do so. ]

Now I'm confused

You wouldn't need a tax ID initially, but if and when you decide to apply to any tax withheld for tax a tax ID would be issued to you on your first filing for a refund. However, the tax revenue office didn't get around to giving me a tax ID until the second year I filed for whatever reason. I think the tax ID is a non-player.

I seen on Bangkok Bank website somewhere before that if you give them your tax ID you might be able to get a waiver on the withholding tax but I've seen a few posts of people who run this up the Bangkok Bank flagpole and it didn't result in stopping the tax withholding "whenever it suppose to be applied" like on a traditional fixed account where 15% is withheld/sent to the govt and they you must apply for a refund in Jan-Mar, which is an easy process....it's not like you are filing a tax return or anything...it's more just a refund request.

Thanks again Pib

So if I go down the Bangkok Bank Fixed Deposit Account ( 11 month term ) route

1. The interest is currently at 2.80%

2. I cannot access the money with out penalties

3. Interest fixed for 11 month duration

4. I can get a refund of the tax withheld using the Kor 10 form

5. I can add to the account after opening but the minimum amount is 100,000 Baht

6. once the account has reached its 11 month end , the account will roll over automatically to a three month fixed term deposit account.

7. The fixed term deposit account could be used for immigration purposes ( once confirmed at the local immigration office )

or go the

Mee Tai Dai KrungSri saving account route

1. Interest currently 2.30 %

2. I can access the account twice in a month without any penalties

3. Interest rate is variable , could go up / down

4 . I can get a refund of the tax withheld using the Kor 10 form

5. I can add to the account at any time / any amount

6. The account has no end of life period

7. The account can be used for immigration purposes ( Savings Account )

Have I got this right , or am I missing some thing