Long term Fixed Deposit

[gavo]

Anyone know of where a good rate for long term Fixed deposits. 8 to 10 years term

[billphillips]

South Korean government bonds will be the best rate and legally tax free in Thailand. If Korea is to much risk for you, check other countries rates for government bonds and the taxation status in Thailand.

I use SCB bank in Thailand and the services of an investment officer are without visible charge. I assume that you are considering investing a substantial sum of money. If it's less than ฿2,000,000 I'm not sure how you will fare at the bank.

Beware of making a private investment, with or without a lawyer, with or without security.

If in doubt ..... Don't do it ..... Buy gold ..... It's safer.

[gavo]

Thanks was looking at Alliance Group who are offering 10% and yes it is well over 2 million bht.

[DavidMavec]

Perhaps I am missing something but from what I have seen the South Korean government bond yields do not appear terribly impressive (http://www.tradingeconomics.com/south-korea/government-bond-yield).

As far as Alliance Group, wow 10% sounds almost "too good to be true" but I'm curious to learn more. What sort of financial product is it? I doubt it is a fixed deposit account.

Something else to throw in the mix: Laos banks are offering 6-7% for USD and THB 3-5 year fixed deposit accounts (I would stay away from the 12%+ for LAK accounts, the kip is losing value fast). You need a work permit to open a bank account however but this is a US$600 affair anyone can do without a job and it takes a few weeks.

[billphillips]

It's good to look around and listen to the factual comments regarding fixed term investments. I suppose the simple and short answer is ..... If you see something reliable that you are happy with, that offers above 8% for a ten year investment ..... Take it.

Remember to deduct the tax from the declared interest.

I am getting 9.76% tax free on a ten year investment. I am happy with that.

Be lucky.

Edited October 22, 2014 by billphillips

[jbaldwin]

As far as I am aware no- one in Thailand offers 8-10 year deposits. Are you sure that actually is a fixed deposit and not some type of investment product. Knowing only the rate tells you nothing about its suitably. Have Alliance Group explained to you the nature of the product,what the risks are, how is the expected return generated and guaranteed and how much commission they will earn if they can sell you the product?

[el jefe]

Perhaps I am missing something but from what I have seen the South Korean government bond yields do not appear terribly impressive (http://www.tradingeconomics.com/south-korea/government-bond-yield).

As far as Alliance Group, wow 10% sounds almost "too good to be true" but I'm curious to learn more. What sort of financial product is it? I doubt it is a fixed deposit account.

Something else to throw in the mix: Laos banks are offering 6-7% for USD and THB 3-5 year fixed deposit accounts (I would stay away from the 12%+ for LAK accounts, the kip is losing value fast). You need a work permit to open a bank account however but this is a US$600 affair anyone can do without a job and it takes a few weeks.

Off on a tangent --

While I'm not saying that LAK accounts are a good investment, the LAK has not been losing value at all. Here's the 30 day chart:

http://www.xe.com/currencycharts/?from=USD&to=LAK&view=1M

Long term LAK has been gaining vs USD. Except for May - Nov 2013 when the LAK gave back it's gains of Jan - Apr 2013 LAK has been strengthening vs the USD for 10 years:

http://www.xe.com/currencycharts/?from=USD&to=LAK&view=10Y

You may be comparing LAK/THB but that's not the right pair for this situation.

[gavo]

Ok Guys what I understand is it is a fixed term deposit account locked in for 12 years at 10% interest. I was just wondering if anyone else here has heard of Alliance or know of a similiar return for a fixed term deposit at similiar rates.

[JMWPACIFIC]

I took a quick look at Alliance and the structure seemed convoluted. If I can't understand it, I don't invest in it.

I go by the old adage that says if it is too good to be true, it probably is.

[gemguy]

I was thinking of more like 5 % as a reasonable return because after looking at the bank rates around here in Asia ...one could consider them to be a joke really.

I was looking for an educational fund of some sort ...like they have in Canada, offered buy some of the Insurance corporations and the mutual fund investments that have been proven to be sound investments with good track records and not having to worry about them running with the money....but they are subject to market conditions and trends so they may not pay off as much as hoped for.....but 4 to 6 and 7 % on some years is common.

However the child or the parents / guardians have to be residents of Canada.

If you have a relative or friend handle the affair then they would be subject to income tax on the year that you cash out on the investment so they would be tax liable and the profit is added on top of any tax liability that they would already be responsible for....so they would be subject to paying even more tax if the education fund investment is in their name on behalf of the child.

My brother has 2 daughters and they had education funds set up for them where the government pays a percent into the fund up to a limit and the guardians put in money in one lump sum or intervals at any time or monthly.

It worked out well and when the 2 daughters turned 18 the accounts had accumulated a value of 38,000 Canadian dollars each over a 17 to 18 year period.

That is what I was looking for with a lump sum initial investment of around 20,000 Canadian dollars accumulating interest or profit for the next 17 to 18 years as part of the for the kids education money.

Cheers

[henry15]

Go to GSB or BAAC bank, they have fixed account taxfree. Bot are governmentbanks so no risk.

I just put some money in an GSB, 9 months fixed account and get 2.45 % taxfree, its not much, but in 9 months . Baac give 2.4% on a 8 month fixed account tax free. No problem as an alien to just open an fixed in both banks.

[Baerboxer]

I was thinking of more like 5 % as a reasonable return because after looking at the bank rates around here in Asia ...one could consider them to be a joke really.

I was looking for an educational fund of some sort ...like they have in Canada, offered buy some of the Insurance corporations and the mutual fund investments that have been proven to be sound investments with good track records and not having to worry about them running with the money....but they are subject to market conditions and trends so they may not pay off as much as hoped for.....but 4 to 6 and 7 % on some years is common.

However the child or the parents / guardians have to be residents of Canada.

If you have a relative or friend handle the affair then they would be subject to income tax on the year that you cash out on the investment so they would be tax liable and the profit is added on top of any tax liability that they would already be responsible for....so they would be subject to paying even more tax if the education fund investment is in their name on behalf of the child.

My brother has 2 daughters and they had education funds set up for them where the government pays a percent into the fund up to a limit and the guardians put in money in one lump sum or intervals at any time or monthly.

It worked out well and when the 2 daughters turned 18 the accounts had accumulated a value of 38,000 Canadian dollars each over a 17 to 18 year period.

That is what I was looking for with a lump sum initial investment of around 20,000 Canadian dollars accumulating interest or profit for the next 17 to 18 years as part of the for the kids education money.

Cheers

Have a look at some of the insurance companies, like ThaiLife. They may have some products that could interest you for the education fund.

Bank rates are considerable better here than Europe and expats offshore accounts. I moved some money yesterday into a 8 month fixed term deposit. Min 2.3% interest, max 3.5% if untouched, average over life if untouched 2.75%. The funds are instantly accessible in the unlikely event I need them before the 8 months are up with the only loss being the extra interest.

[DavidMavec]

Perhaps I am missing something but from what I have seen the South Korean government bond yields do not appear terribly impressive (http://www.tradingeconomics.com/south-korea/government-bond-yield).

As far as Alliance Group, wow 10% sounds almost "too good to be true" but I'm curious to learn more. What sort of financial product is it? I doubt it is a fixed deposit account.

Something else to throw in the mix: Laos banks are offering 6-7% for USD and THB 3-5 year fixed deposit accounts (I would stay away from the 12%+ for LAK accounts, the kip is losing value fast). You need a work permit to open a bank account however but this is a US$600 affair anyone can do without a job and it takes a few weeks.

Off on a tangent --

While I'm not saying that LAK accounts are a good investment, the LAK has not been losing value at all. Here's the 30 day chart:

http://www.xe.com/currencycharts/?from=USD&to=LAK&view=1M

Long term LAK has been gaining vs USD. Except for May - Nov 2013 when the LAK gave back it's gains of Jan - Apr 2013 LAK has been strengthening vs the USD for 10 years:

http://www.xe.com/currencycharts/?from=USD&to=LAK&view=10Y

You may be comparing LAK/THB but that's not the right pair for this situation.

@el jefe I stand corrected, I was confused. Thanks for that, it might be a good idea to put a certain percentage into LAK if one invests in fixed deposit accounts in Laos...just a bit nervous about putting my money into Laos banks but several international entities operate there such as Maybank from Malaysia and ANZ from Australia.

[angeltwossister]

Ok Guys what I understand is it is a fixed term deposit account locked in for 12 years at 10% interest. I was just wondering if anyone else here has heard of Alliance or know of a similiar return for a fixed term deposit at similiar rates.

Like you, I was very interested in their 10% return promise.....I have recently done a lot of research into the Alliance/nowcompare product and had a friend in the financial services industry look into it very thoroughly. We were considering a substantial investment, but have decided if you don't really understand something, better not do it, we also asked him to investigate the security of the 'insurance wrapper'. Not sure how TV website work but I have info, I think you can PM me if you want to see it all.

[JacChang]

3 new members with little or no posts, talking about Allianz investments with 10% gains and supporting it.

Name the investment product? I will have a look at it myself. There is no such thing as a "Allianz 10% return", returns and performances are not guaranteed, and anyone thinking so is a fool. Do give me a name of that Allianz product, and I'll gladly evaluate it and let our TV members know the nature of this product, the risks involved, and the REAL percentage returns.

To Gavo, if he is serious about inquiring instead of just promoting Allianz. If your timeframe is 3-10 years time, Do not touch anything lower than 3.5% Time itself is not a burden, it is only to those who wish to use that money. Aka the poor. Many people like to say, oh look I got a 8 months only deposit, it's shorter than your 3 years, it's better. No, it's not. That same somchai will be earning 2-2.5% interest and once that deposit matures, they put it back in again. Poor time management. I would take a 10 yr with 4% over anything else, because I know we will come up on top.

That being said, you are looking at 40 months time deposit offering 3.5%. Government/corporate bonds that offer 4-4.5% with 10 year scales. If you mind the flexibility and fluidness of your funds, you may consider corporate bond mutual funds Thailand based, so you won't be locked in for the 5-10 year, and just pay 0.5-1% management fee as cost. Earn less, but more liquidity. And minimum 5,000 investment required as opposed to buying your own bonds with 1 million minimum.

Someone mentioned South Korea bonds and another poster saying if you can take the risk. In my investment opinion, South Korea ranks the top 2, where I would buy bonds in. So much for your risk assessment of "risky". The interest rate of South Korea today stands at 2% and the inflation is at 1.1%. If you opt for a 5-10 year bond, you can easily get 4% interest and with inflation at 1.1% that is merely 3% gains. Once the 10 years are up, because of S.Korea's low inflation with regards to Thailand's. You can gain another 10% in foreign exchange once you switch back from S.Korea to Thailand, in 10 year's time, minimum.

BillPhillips, do you buy South Korea bonds from Thailand? If so, how? Hopefully it is direct purchase, and not through a mutual fund? Thanks. Interested to know.

[DavidMavec]

3 new members with little or no posts, talking about Allianz investments with 10% gains and supporting it.

I also thought this was a bit weird, that these three posters who are totally new on this forum seem to be promoting the same investment products which are a bit out of the norm. Not going so far as to make any accusations, it just makes me a bit wary.

Edited October 23, 2014 by DavidMavec

[maidee]

can u expect any advice from here ? most members claim to earn 100-200k baht pensions per month , you think they want to share their real or fake golden egg or just boost their image ?

[billphillips]

My SK Government bonds are via Siam Commercial Bank, Thailand.

The payment was made in Thai Baht and will be repaid in same.

Of course the prevailing exchange rates are figured into the equation and managed by the bank.

The figure quoted is guaranteed to me regardless .. But all investments carry a risk element. This is Thailand, anything can happen!

SK government bonds may be deemed as high risk. Maybe stick with Thai bonds for security .... 5555

Never put all of your hard earned cash into a single venture. Use a minimum of three separate investments. If you don't understand the deal or you don't feel comfortable with it .... Don't do it.

In Thailand, money speaks its own language. The more you have ... The better you are understood. The declared interest for various financial products are at the lower rate, for small investors. If you have serious money don't look here, go and talk with a bank investment officer for real and factual advice. I did and I have no regrets, I'm on my second fixed term of 10y.

[JacChang]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

My SK Government bonds are via Siam Commercial Bank, Thailand.
The payment was made in Thai Baht and will be repaid in same.
Of course the prevailing exchange rates are figured into the equation and managed by the bank.
The figure quoted is guaranteed to me regardless .. But all investments carry a risk element. This is Thailand, anything can happen!
SK government bonds may be deemed as high risk. Maybe stick with Thai bonds for security .... 5555

Never put all of your hard earned cash into a single venture. Use a minimum of three separate investments. If you don't understand the deal or you don't feel comfortable with it .... Don't do it.

In Thailand, money speaks its own language. The more you have ... The better you are understood. The declared interest for various financial products are at the lower rate, for small investors. If you have serious money don't look here, go and talk with a bank investment officer for real and factual advice. I did and I have no regrets, I'm on my second fixed term of 10y.

Thanks billphillips.

So anyone can just walk into the SCB and say I want to buy the south korea government bonds? And I assume they will hand you a a4 piece of paper of some sort of certificate showing you as the owner of the bond? Or is it through one of their mutual funds.

And on your second term of 10yr, may I ask what interest rate were you quoted at? And is the product currency hedged? As in, the principal paid will be returned in the same amount, or it may fluctuate after 10 years depending on currency exchange?

Thanks.

[billphillips]

Based on previous experience ... No you don't walk into a bank and get handed a sheet of paper.

The tone of your post suggests disbelief and scepticism. That's ok, it's your personal point of view and privilege.

I enjoy a good working relationship with my bank. Perhaps your experience is something else.

I only suggest to anyone with a substantial amount of investment, try this route. I an not dissatisfied.

The money I invested previously, has almost completely been returned to me by way of the interest payment (which I didn't re-invest). If I chose to end the investment, short of the full term, I do not receive interest and the bank reserves the right to impose charges.

In theory I could cancel the investment today. Even considering charges and costs, I would be way above the normal bank interest rates offered. Are their risks involved? Yes of course their are.

Go to the bank and talk, that's all.

[gavo]

Ok Guys I am not promoting any product just seek advise if anyone else had anything to do with them. On further investigation in to it I won't be proceeding as it is not the best option for me. So before you all linch me just ask the question yourself maybe the guy is just looking for some help or advise. Anyway guys this had been a real eye opener about how helpful some can be and others just want to cause problems Thankyou all for welcoming one of my few posts on TV well done.

[xenophon]

It's good to look around and listen to the factual comments regarding fixed term investments. I suppose the simple and short answer is ..... If you see something reliable that you are happy with, that offers above 8% for a ten year investment ..... Take it.

Remember to deduct the tax from the declared interest.

I am getting 9.76% tax free on a ten year investment. I am happy with that.

Be lucky.

That is impressive, Bill. I am currently averaging 8% over 10 years through a superannuation account. If you are willing to say, where are you getting 9.76%

[topt]

It's good to look around and listen to the factual comments regarding fixed term investments. I suppose the simple and short answer is ..... If you see something reliable that you are happy with, that offers above 8% for a ten year investment ..... Take it.

Remember to deduct the tax from the declared interest.

I am getting 9.76% tax free on a ten year investment. I am happy with that.

Be lucky.

That is impressive, Bill. I am currently averaging 8% over 10 years through a superannuation account. If you are willing to say, where are you getting 9.76%

It is very impressive and I would also be very happy with that. I am interested in knowing how you can achieve 9.76% (presume this is average per year across the current 10 years?)in SK govt. bonds.

My query is because a quick search brings this up - http://www.tradingeconomics.com/south-korea/government-bond-yield

"The South Korea Government Bond 10Y decreased to 2.72 percent in October from 2.86 percent in September of 2014. South Korea Government Bond 10Y averaged 4.89 from 2000 until 2014, reaching an all time high of 7.91 in April of 2001 and a record low of 2.72 in May of 2013."

(I have ignored any capital growth but you won't know what that is until you sell)

[H1w4yR1da]

On 10/22/2014 at 9:33 PM, billphillips said:

It's good to look around and listen to the factual comments regarding fixed term investments. I suppose the simple and short answer is ..... If you see something reliable that you are happy with, that offers above 8% for a ten year investment ..... Take it.

Remember to deduct the tax from the declared interest.

I am getting 9.76% tax free on a ten year investment. I am happy with that.

Be lucky.

Like to tell us where you're getting 9.76%?

[topt]

13 minutes ago, H1w4yR1da said:

Like to tell us where you're getting 9.76%?

Its a 5 year old thread and he never responded to my reply 5 years ago......or a previous poster but the suggestion was it was some sort of Sovereign bond - South Korea in this instance.

You can get that and more annually in high yield bonds (normally distressed in some way ) but usually with a minimum 100 or $200k buy in and no guarantee you will get back what you put in.........