Money transfer and investment

[orientfan]

I am moving to Thailand on a Retirement Visa and have 200,000 pounds in a UK bank account.
Does anyone have any investment advice as to what to do with this sum?
I know I have to keep 800,000 baht (or more) in a Thai account. My UK bank (Halifax)
charges 9.50 pounds each time money is transferred to Thailand on-line. Do other
banks offer better rates in anyone's experience?
As you can tell, I am a novice at this but want to be best prepared. Thanks for any and all
practical advice!

[Maestro]

I am moving this topic from the forum "Thai visas, residency and work permits" to the forum "Jobs, economy, banking, business, investments"

[meatboy]

as rates are not that good at the moment they are still better than the uk.

if you qualify to open accs.in thailand there is still fair rates to be had.

if the interest you make is to cover exs.or just to top up your pension do your sums as its not getting any cheaper to live here,there's always something just around the corner,exspecially health cover or hospital visits.

you are allowed 150,000bht.interest yearly before you have to pay tax.

so 200,000gbp.should give you around 275,000bht.if lucky 300,000bht.interest,so you will pay i think its 5%tax on the next 150,000bht.

[AyG]

You don't need to keep 800,000 Baht in the bank if you have sufficient pension income to meet requirements (65,000 Baht/month).

Are the GBP 200,000 your only savings? If so, I'd suggest you are cautious with your money. In the greater scheme of things it's not very much.

If you're planning on spending the rest of your life in Thailand, then switching it all to Baht is a good idea since it eliminates any currency risk. (Many pensioners here came to live when the exchange rate was above 70. It subsequently fell to below 50. This caused some of them a fair bit of grief.)

The bad news is that any safe investment in Thailand is not going to keep pace with inflation and the value of your money will be eroded over the years and decades. If you're able to save a little from your pension income that will help.

Probably the best solution for you is going to be to keep enough money for a few months' worth of daily expenses in a savings account, and keep the rest in fixed term savings accounts with different (staggered) maturities. As each account matures you then have the fun of shopping around, looking for which bank has the best home for your money for the next period of time.

Currently depositors are protected up to 50 million Baht, but that limit may come down to 1 million, so keep an eye on that.

Also, if your savings are quite limited, it's really important that you have in place medical insurance if possible. Otherwise an unexpected medical problem could eat up much of your savings. Even then, you're unlikely to be able to get medical insurance past 70, and any pre-existing conditions won't be covered.

[JB300]

Personally I'd only transfer as much as I needed for the next few months as I don't feel the GBP:THB rate is good at the moment.

[Colabamumbai]

All rates except the U.S at 32 Baht to a dollar are down. Canadian dollar usually 29 baht down to 26.

Nearly all currency is down against the Baht. Not a good time to change or invest in Thai Baht.

[AyG]

Personally I'd only transfer as much as I needed for the next few months as I don't feel the GBP:THB rate is good at the moment.

All rates except the U.S at 32 Baht to a dollar are down. Canadian dollar usually 29 baht down to 26.

Nearly all currency is down against the Baht. Not a good time to change or invest in Thai Baht.

I wish I had crystal balls like you two. Those of us not blessed with great powers of divination can't tell whether now is a good time or not to transfer money. The exchange rate might go up; the exchange rate might go down. If it were possible to predict these things with any accuracy then currency speculation would be a doddle. It's not. It's something best left to hedge fund managers and the like - and look how well many of them did over the recent Swiss Franc debacle.

To me, only two strategies make sense: transfer in one lump sum, accepting that day's exchange rate and not worrying about what happens to the rate in the future; phase the transfer over a number of months and get an average rate which may, or may not, be better than the current rate. Trying to time the market is a mugs' game.

[meatboy]

Personally I'd only transfer as much as I needed for the next few months as I don't feel the GBP:THB rate is good at the moment.

All rates except the U.S at 32 Baht to a dollar are down. Canadian dollar usually 29 baht down to 26.

Nearly all currency is down against the Baht. Not a good time to change or invest in Thai Baht.

I wish I had crystal balls like you two. Those of us not blessed with great powers of divination can't tell whether now is a good time or not to transfer money. The exchange rate might go up; the exchange rate might go down. If it were possible to predict these things with any accuracy then currency speculation would be a doddle. It's not. It's something best left to hedge fund managers and the like - and look how well many of them did over the recent Swiss Franc debacle.

To me, only two strategies make sense: transfer in one lump sum, accepting that day's exchange rate and not worrying about what happens to the rate in the future; phase the transfer over a number of months and get an average rate which may, or may not, be better than the current rate. Trying to time the market is a mugs' game.

yes ayg.i have seen rates at 37 and 90+,so if the op has a pension besides his capital,always look at what you would you be happy with.dont think todays rate will be the same next week,so set an amount,antthing over is a bonus.if you have pensions,have them paid into a uk.bank then trans.your living exs.once a yr.not only will you save on trans.fees you can watch the exchange rate till its in your favour and what you will e happy with.DONT BE GREEDY or you ight come unstuck.

[meatboy]

this is for the op.if you have a future or an extended family here in thailand DONT.DONT,DONT.

LET ANYONE KNOW whats in the bank. and leave the ATM card at home.

[JB300]

Personally I'd only transfer as much as I needed for the next few months as I don't feel the GBP:THB rate is good at the moment.

All rates except the U.S at 32 Baht to a dollar are down. Canadian dollar usually 29 baht down to 26.

Nearly all currency is down against the Baht. Not a good time to change or invest in Thai Baht.

I wish I had crystal balls like you two. Those of us not blessed with great powers of divination can't tell whether now is a good time or not to transfer money. The exchange rate might go up; the exchange rate might go down. If it were possible to predict these things with any accuracy then currency speculation would be a doddle. It's not. It's something best left to hedge fund managers and the like - and look how well many of them did over the recent Swiss Franc debacle.

To me, only two strategies make sense: transfer in one lump sum, accepting that day's exchange rate and not worrying about what happens to the rate in the future; phase the transfer over a number of months and get an average rate which may, or may not, be better than the current rate. Trying to time the market is a mugs' game.

No crystal ball & don't profess to be an expert but I personally believe that the rate is a little low at the moment so if it was me I'd edge my bets by moving some over now & look for future opportunities.

Obviously it's impossible to time the market, the rate could just as easily go against you & you'll take a hit on Transfer costs but I think there will be an "Event" in Thailand over the next couple of years that will cause the Baht to drop.

Again, just my personal opinion if I knew 100% (or even close) I'd be forex trading [emoji4]

Edited February 10, 2015 by JB300

[wowfactor10]

How about invest it all in land with a nice house house on it ?

This is also easy transferable into the name of your thai teerak

[AyG]

How about invest it all in land with a nice house house on it ?

Aren't we forgetting that it's impossible for foreigners to own land here?

[Billy Bloggs]

As for moving money into thailand, dont use a bank it is too costly, there are many foreign exchange services, from here in Australia I use OzForex where any amount over $10000 there is no fee, they get paid by a small difference in exchange rate(which by the way is generally better than what a bank will quote you anyway). So look around sure there is one suitable in your country.

Be careful with investment advice.

[dotpoom]

The 800,000 Baht only has to be lodged in the bank for the previous 3 months to the issuing of the letter by the bank for Immigration.

[Nowisee]

Investment advice. Do not "invest" here.
Keep your money in home country and drawn down what you need when you need it.

Rent home/condo, rent scooter (unless you're a motorcyclist and enjoying riding a nice bike).

The bank I do business with has been flawless so far.

As others have said, it you already have the retirement visa, means you qualified with pension... not sure why your bring up the 800k baht.

[wowfactor10]

How about invest it all in land with a nice house house on it ?

Aren't we forgetting that it's impossible for foreigners to own land here?

Och sorry it slipped my mind..Ok then this was a bad advice do not follow it up

[ozyjon]

Be very careful young man,, you know that in Thailand

the way to make a small fortune is to start with a big one.

If you consider Thailand being the same as a large cassino

then all the rules apply and you are half way there, whatever

money you bring to this country will always stay here either

in your hands or probably hers, so many people have

come to this country, leaving it all behind only to get

homesick for their country and realize they can't go back.

Read as many posts as you can,, read ''Private Dancer''

and have a good trip.

[meatboy]

As for moving money into thailand, dont use a bank it is too costly, there are many foreign exchange services, from here in Australia I use OzForex where any amount over $10000 there is no fee, they get paid by a small difference in exchange rate(which by the way is generally better than what a bank will quote you anyway). So look around sure there is one suitable in your country.

Be careful with investment advice.

i dont think so BB no offshore co.can beat the onshore banks TT.RATES they can beat your onshore bank,that is not hard when you compare.

as the op is looking to transfer 200k.gbp they will offer him a better rate than TT,might only be 10-20 satang but multiply that by 200k.=20,000-40,000bht.not to be sniffed at.

[jacko45k]

as rates are not that good at the moment they are still better than the uk.

if you qualify to open accs.in thailand there is still fair rates to be had.

if the interest you make is to cover exs.or just to top up your pension do your sums as its not getting any cheaper to live here,there's always something just around the corner,exspecially health cover or hospital visits.

you are allowed 150,000bht.interest yearly before you have to pay tax.

so 200,000gbp.should give you around 275,000bht.if lucky 300,000bht.interest,so you will pay i think its 5%tax on the next 150,000bht.

I believe the starting rate is 15%, as that is what they automatically take off me.

If you receive sufficient you can also end up paying 20% on some of it.

[watso63]

I use Moneycorp to transfer cash from the UK. The rate is £9 per transaction and the exchange rate is much better than any bank I know of. I've compared different other exchange companies and short of stuffing as many £50 notes you can into your hand luggage, pockets and socks it's the best I've found out there. The rate varies a little in the sense that the more you bring over, the better the rate.

A lot depends on what you plan on doing when you get here and what stage in your life you are at. Is there a Thai romance in the air? Nothing wrong with that, but mistakes can be costly.

You admit that you are new to the game, but don't be naiive, £200,000 is a lot of dosh, but it can soon disappear if you get off the plane and let your dick take control of your brain?.

[meatboy]

as rates are not that good at the moment they are still better than the uk.

if you qualify to open accs.in thailand there is still fair rates to be had.

if the interest you make is to cover exs.or just to top up your pension do your sums as its not getting any cheaper to live here,there's always something just around the corner,exspecially health cover or hospital visits.

you are allowed 150,000bht.interest yearly before you have to pay tax.

so 200,000gbp.should give you around 275,000bht.if lucky 300,000bht.interest,so you will pay i think its 5%tax on the next 150,000bht.

I believe the starting rate is 15%, as that is what they automatically take off me.

If you receive sufficient you can also end up paying 20% on some of it.

yes they[the banks] take 15% tax but if your only income in thailand is below 150,000 you claim it all back.

see bank interest rate forum.

or go to WWW.RD.GO.THY

[jacko45k]

as rates are not that good at the moment they are still better than the uk.

if you qualify to open accs.in thailand there is still fair rates to be had.

if the interest you make is to cover exs.or just to top up your pension do your sums as its not getting any cheaper to live here,there's always something just around the corner,exspecially health cover or hospital visits.

you are allowed 150,000bht.interest yearly before you have to pay tax.

so 200,000gbp.should give you around 275,000bht.if lucky 300,000bht.interest,so you will pay i think its 5%tax on the next 150,000bht.

I believe the starting rate is 15%, as that is what they automatically take off me.

If you receive sufficient you can also end up paying 20% on some of it.

yes they[the banks] take 15% tax but if your only income in thailand is below 150,000 you claim it all back.

see bank interest rate forum.

or go to WWW.RD.GO.THY

So far I have not pursued this but am aware one can.

I should add it up this year to see if I can be bothered, I simply feel better minimising my association with tax authorities.

I believe you can actually back-claim a few years of tax back, so my laziness is perhaps a waste of a fair amount.

Edited February 11, 2015 by jacko45k

[roobaa01]

i would fly to australia or new zealand opening an savings bank account with online access and earn money on term deposits

oz 3.5 %, nz 5 %, then keep thb 1 mill in thailand , for the marriage extension in thailand u need only 400 k not 800 k.

cheers

roobaa01

[LarryLEB]

As for moving money into thailand, dont use a bank it is too costly, there are many foreign exchange services, from here in Australia I use OzForex where any amount over $10000 there is no fee, they get paid by a small difference in exchange rate(which by the way is generally better than what a bank will quote you anyway). So look around sure there is one suitable in your country.

Be careful with investment advice.

100% Sound Advice! I use Canadian Forex, which is actually the same company as OzForex referred to above. I can confirm that any amounts over $10,000 have no fee attached. In addition, as the amount you want to transfer is increased, the exchange rate gets better and better.

[Godders]

You don't need to keep 800,000 Baht in the bank if you have sufficient pension income to meet requirements (65,000 Baht/month).

Are the GBP 200,000 your only savings? If so, I'd suggest you are cautious with your money. In the greater scheme of things it's not very much.

If you're planning on spending the rest of your life in Thailand, then switching it all to Baht is a good idea since it eliminates any currency risk. (Many pensioners here came to live when the exchange rate was above 70. It subsequently fell to below 50. This caused some of them a fair bit of grief.)

The bad news is that any safe investment in Thailand is not going to keep pace with inflation and the value of your money will be eroded over the years and decades. If you're able to save a little from your pension income that will help.

Probably the best solution for you is going to be to keep enough money for a few months' worth of daily expenses in a savings account, and keep the rest in fixed term savings accounts with different (staggered) maturities. As each account matures you then have the fun of shopping around, looking for which bank has the best home for your money for the next period of time.

Currently depositors are protected up to 50 million Baht, but that limit may come down to 1 million, so keep an eye on that.

Also, if your savings are quite limited, it's really important that you have in place medical insurance if possible. Otherwise an unexpected medical problem could eat up much of your savings. Even then, you're unlikely to be able to get medical insurance past 70, and any pre-existing conditions won't be covered.

Re depositor protection: "From 11 August 2011 until 10 August 2012, the coverage drops to 50 million baht per depositor per bank. Thereafter, coverage is limited to THB one million per depositor per bank" - source Wikipedia.

[AyG]

Currently depositors are protected up to 50 million Baht, but that limit may come down to 1 million, so keep an eye on that.

Re depositor protection: "From 11 August 2011 until 10 August 2012, the coverage drops to 50 million baht per depositor per bank. Thereafter, coverage is limited to THB one million per depositor per bank" - source Wikipedia.

Don't believe everything you read on Wikipedia. The current situation is given at http://www.dpa.or.th/ewt_news.php?nid=320&filename=index___EN and the current protection is as I stated, 50 million, possibly (but unlikely in my opinion) falling in future years to 1 million.

[orientfan]

Thank you for all the differing but helpful advice. To clarify, I am 55 and not eligible for my pension for another 11 years thus the 200,000 pounds must sustain me until then. However, I have accommodation and 3 meals a day supplied in Thailand so the 200,000 is to fund 'extras'. There's no Thai girlfriend or wife (nor likely to be!).

Any additional advice as to where to place the 200,000 pounds either in UK or Thailand, or both, is very much appreciated.

Thank you,
John