Krungsri foreign currency account. Easy to open. Any pitfalls to be ware of?

[Awk]

Recently I tried to open a foreign currency with my regular bank (Bangkok Bank). After applying and not being contacted back for over a month, I went to check what had happened, and apparently the head office, which I was told is the one who approves all foreign currency accounts, had not approved my application because the person who "guaranteed" for me did not have at least 300,000B in a BB account.

When originally applying, I was asked for someone to guarantee for me. Why I don't know, but I found a person anyway. However no mention of 300,000B was given when applying, and in fact, my guarantor does not even have a BB account, much less 300,000B in it.

I smiled and expressed my curiosity as to why nobody had contacted me back to tell me this, but no one knew.

So I websurfed around a little and found Krungsri. Opening a foreign currency account there was a breeze and as far as I can understand, as long as I keep a minimum balance, there are no charges either. They'd even give me an ATM card that I could use to make direct withdrawals from the foreign currency account, giving me the bank's standard exchange rate at the time, and also without any withdrawal charges as long I use an ATM from the same branch/region or something like that (I didn't want an ATM card, so did check the exact details regarding branch/region).

So compared to BB, at Krungsri it was very easy to open a foreign currency account, even though I did not even have any previous Krungsri account, while on the other hand I have two BB accounts. I only needed my passport, and I'm not even sure if they cared whether I had a one-year permit to stay in it, or just a 30 day stamp. (On the other hand, it was, at least at this branch, quite a bit more cumbersome to open a standard BHT account.)

I was told there would be some excessive charges if I transfer from the foreign currency account to some other account, except if the other account is a Krungsri account (and in the same branch/region?), but that seems to be on par with BB, and other banks here I guess. Over the counter withdrawals would not incur any charges either.

My only question is, are others here aware of any pitfalls or things to be careful about with this type of account, except not transferring directly from the foreign currency account to another bank's account?

[falang07]

I fail to understand this request for a guarantor, too. If I open an account, I deposit my own money and I can not spend more than I deposit. So what is the reason for someone to guarantee me?

[falang07]

Make sure to check the fees, as far as I know, all withdrawals/transfers from a foreign currency account are subject to a 1 - 2 % fee in Thailand, regardless if you transfer to your own account or of some else.

[Tocher]

I've had a GBP account with Krungsri for several years. The only transactions that are free are:

1. Cash withdrawals/funds transfer/cashiers cheque in THB and,

2. Transfers between FCD accounts in your own name. You are not charged for the resulting debit or credit.

Every other transaction attracts a fee or commission if there is no FX trade involved.

I got caught by this when first I withdrew GBP cash (1%) for a recent trip to London and then when I re-deposited the leftover GBP (1%) when I returned.

This "commission" (no FX trade) is the highest charge they levy and beware that there is no maximum charge applied!

Otherwise I find my Krungsri branch to be very helpful and willing to find solutions to any issues that they can't imediately resolve.

[scorecard]

Interesting topic.

Can any of the posters on this thread please share why to have a foreign currency account, and the benefits, please.

I'm assuming one of the reasons / maybe the prime reason is to keep your funds in a more stable currency. But that's my uneducated assumption.

Would you please share.

[jippytum]

Can't understand the comments about Bangkok bank .I have a FCA and make quite a few transfers no problem and no guarantor req'd .From my UK bank I transfer funds to BB London they charge 15 to £20 max and local branch charge up to max 500 baht .Two working day time frame .Details on the website.

transfer in Thai baht or sterling .

[Searat7]

I have an FX USD account at Bangkok Bank...the only extra id required was my US Driver's license..no guarantors......opened this account at the main office as I live nearby. The advantage to an FX account is that you can convert dollars to baht any time you feel that the exchange rate is advantageous. I would never want an ATM card for this account though as all of my transactions here are in baht and I already have an ATM card for one of two baht accounts I have. I can transfer up to $10,000 online from USA account for $10..it costs about $16 to receive this amount at Bangkok Bank.

[falang07]

OK, everyone is lazy to check so here it is: http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/ForeignCurrencyAccount/Pages/FCDFees.aspx

USD: 0.25% when receiving + 0.25% when withdrawing, 0.5% in total

EUR: 0.25% when receiving + 0.5% when withdrawing, 0.75% in total

AUD: 0.25% when receiving + 0.75% when withdrawing, 1.00% in total

and so on...

[TheCruncher]

OK, everyone is lazy to check so here it is: http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/ForeignCurrencyAccount/Pages/FCDFees.aspx

USD: 0.25% when receiving + 0.25% when withdrawing, 0.5% in total

EUR: 0.25% when receiving + 0.5% when withdrawing, 0.75% in total

AUD: 0.25% when receiving + 0.75% when withdrawing, 1.00% in total

and so on...

But you shouldn't be so lazy and give complete info.

USD: 0.25% when receiving MAXIMUM 500 Bhht + 0.25% when withdrawing, 0.5% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

EUR: 0.25% when receiving MAXIMUM 500 Bht + 0.5% when withdrawing, 0.75% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

AUD: 0.25% when receiving MAXIMUM 500 Bht + 0.75% when withdrawing, 1.00% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

[fletchsmile]

For potential pitfalls:

- Compare the rates you're getting here to rates in other countries if you have access to other countries. Generalising Thailand isn't usually competitive

- Check all the T&Cs and fine print on charges, including whether each time you add/withdraw/transfer etc. Generalising again Thailand usually isn't competitive.

- Remember that foreign currency deposits are not covered by Thailand's Deposit Protection Act (DPA) whereas THB deposits with the main banks are. Hence be comfortable with the strength of the bank you're placing your deposit with.

On benefits, the main benefit of a foreign currency deposit in Thailand compared to anywhere else/ other countries is probably convenience. Maybe easier to open, visit, maintain, etc if you're based in Thailand. Aside from that any other benefits, such as managing exchange risk, etc are usually available with a foreign currency account outside Thailand, and not particular to Thailand.

Cheers

Fletch

Edited December 3, 2015 by fletchsmile

[fletchsmile]

OK, everyone is lazy to check so here it is: http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/ForeignCurrencyAccount/Pages/FCDFees.aspx

USD: 0.25% when receiving + 0.25% when withdrawing, 0.5% in total

EUR: 0.25% when receiving + 0.5% when withdrawing, 0.75% in total

AUD: 0.25% when receiving + 0.75% when withdrawing, 1.00% in total

and so on...

But you shouldn't be so lazy and give complete info.

USD: 0.25% when receiving MAXIMUM 500 Bhht + 0.25% when withdrawing, 0.5% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

EUR: 0.25% when receiving MAXIMUM 500 Bht + 0.5% when withdrawing, 0.75% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

AUD: 0.25% when receiving MAXIMUM 500 Bht + 0.75% when withdrawing, 1.00% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

Remember also there's a bid-offer spread to be borne in mind as a cost too. So say converting from USD to THB and from THB to USD will be done at different rates which represents a cost, even if no fee is specifically charged.

[TheCruncher]

OK, everyone is lazy to check so here it is: http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/ForeignCurrencyAccount/Pages/FCDFees.aspx

USD: 0.25% when receiving + 0.25% when withdrawing, 0.5% in total

EUR: 0.25% when receiving + 0.5% when withdrawing, 0.75% in total

AUD: 0.25% when receiving + 0.75% when withdrawing, 1.00% in total

and so on...

But you shouldn't be so lazy and give complete info.

USD: 0.25% when receiving MAXIMUM 500 Bhht + 0.25% when withdrawing, 0.5% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

EUR: 0.25% when receiving MAXIMUM 500 Bht + 0.5% when withdrawing, 0.75% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

AUD: 0.25% when receiving MAXIMUM 500 Bht + 0.75% when withdrawing, 1.00% in total 2. No fee for withdrawing funds from a Foreign Currency Deposit Account and changing it into THB.

Remember also there's a bid-offer spread to be borne in mind as a cost too. So say converting from USD to THB and from THB to USD will be done at different rates which represents a cost, even if no fee is specifically charged.

The bid - offer spread is applied worldwide, so that doesn't make a difference for Thailand.

The biggest advantage of a foreign currency account, in my opinion, is that you can act immediately on exchange at the time you consider to get the best exchange rate.

When transfer money the rate can be different between the time you initiate the transfer and the time it arrives in Thailand.

[Pib]

I think fletch might be talking the bank buying-selling rates where he says the bid-offer spread. The buying-selling rates at each bank will be different....just check any Thai bank's buying and selleng rates to see that. Like I just looked at Bangkok Bank's and SCB buying-selling rates for the USB-THB a minute ago and Bangkok Bank's spread on TT buying-selling was 0.37 baht/USD and SCB's was 0.30 baht/USD

Also, with the speed of SWIFT/wire transfers now days and considering the possible account maintenance/minimum balance fees which goes along with a Thai bank FCD I don't know if being able to exchange some foreign currency to baht at the drop of a hat has any real big advantage now days for a typical person just needing a periodic top-up of baht to cover day-to-day living costs in Thailand.

I'm sure it gives some folks a warm-fuzzy in having some of their money within Thailand in their home country currency, but the only warm-fuzzy it may really be providing is to the bank through fees. Now if you have business and need to make/receive payments in foreign currencies then that's a different story.

[TheCruncher]

I think fletch might be talking the bank buying-selling rates where he says the bid-offer spread. The buying-selling rates at each bank will be different....just check any Thai bank's buying and selleng rates to see that. Like I just looked at Bangkok Bank's and SCB buying-selling rates for the USB-THB a minute ago and Bangkok Bank's spread on TT buying-selling was 0.37 baht/USD and SCB's was 0.30 baht/USD

Also, with the speed of SWIFT/wire transfers now days and considering the possible account maintenance/minimum balance fees which goes along with a Thai bank FCD I don't know if being able to exchange some foreign currency to baht at the drop of a hat has any real big advantage now days for a typical person just needing a periodic top-up of baht to cover day-to-day living costs in Thailand.

I'm sure it gives some folks a warm-fuzzy in having some of their money within Thailand in their home country currency, but the only warm-fuzzy it may really be providing is to the bank through fees. Now if you have business and need to make/receive payments in foreign currencies then that's a different story.

Swift still takes a few days, where only a few hours can make a considerably difference in exchange rates.

My bank, similar to most banks in the world, charge a certain percentage on the transferred amount to calculate the fee, though there is a limit on the fee which is 48 Euro.

If I send 15.000 Euro I reach that limit and pay 48 Euro, so if i send 300.000 Euro I also pay 48 Euro, where if I send 20 times 15.000 Euro I pay 20 times 48 Euro.

My Euro's or USD in my European accounts pay a few basis points in interest on the Euro and 0% on the USD.

Adding to that I run the risk that Europe may run a Cyprus, and/or other restrictions, and I will lose a big part of my savings.

[Pib]

Plenty of posts from folks where their SWIFT transfers arrive/post within hours...but, there are also plenty of posts where SWIFT transfers take days sometimes due to name mismatches or just some unknown reason as to why it took the sending/receiving bank so long to complete the transfer. But I expect the great, great majority of SWIFT transfers do indeed ocur swiftly. Heck, I can even do low cost ACH transfers (no Sending bank fee) from the U.S. to my Bangkok Bank account and only incur the Bangkok Bank fees and arrives within 1 to 2 days, Plus, it's probably a 50-50 chance the next day's/coming days exchange rates will be higher based on how my fx crystal ball has worked out over the years. And it's always best to do the large and infrequent transfers to minimize transfer costs but based on posts I've read it seems most folks only transfer enough to get them by for a month or two...or they rely on an automatic monthly pension transfer.

Sure if some major world event occurs that will surely drive certain currency pairs in certain upward or download directions then being able to convert money at the drop of a hat is definitely good...but I'm not sure most people just set around waiting for some major world event to occur to exchange money that might possibly affect the baht exchange rate.

Nothing wrong with a FCD...they work good for some people depending on needs. Also may give a sense of security in having some home country currency in your local Thai bank although that FCD is not insured by the Thai govt if the bank fails. To each his own. I've even thought about opening a FCD on occasions...but then I reflect on posts such as this I've talked myself out of it again.

[TheCruncher]

Plenty of posts from folks where their SWIFT transfers arrive/post within hours...but, there are also plenty of posts where SWIFT transfers take days sometimes due to name mismatches or just some unknown reason as to why it took the sending/receiving bank so long to complete the transfer. But I expect the great, great majority of SWIFT transfers do indeed ocur swiftly. Heck, I can even do low cost ACH transfers (no Sending bank fee) from the U.S. to my Bangkok Bank account and only incur the Bangkok Bank fees and arrives within 1 to 2 days, Plus, it's probably a 50-50 chance the next day's/coming days exchange rates will be higher based on how my fx crystal ball has worked out over the years. And it's always best to do the large and infrequent transfers to minimize transfer costs but based on posts I've read it seems most folks only transfer enough to get them by for a month or two...or they rely on an automatic monthly pension transfer.

Sure if some major world event occurs that will surely drive certain currency pairs in certain upward or download directions then being able to convert money at the drop of a hat is definitely good...but I'm not sure most people just set around waiting for some major world event to occur to exchange money that might possibly affect the baht exchange rate.

Nothing wrong with a FCD...they work good for some people depending on needs. Also may give a sense of security in having some home country currency in your local Thai bank although that FCD is not insured by the Thai govt if the bank fails. To each his own. I've even thought about opening a FCD on occasions...but then I reflect on posts such as this I've talked myself out of it again.

With a swift the money ALWAYS arrives in Thailand within a matter of a few hours, it is the Thai bank that holds on to it for a few days before they deposit in your account.

I have noticed currency swings of 30 - 40 Satang to the US$ during the same day recently, and then hasn't yet the , so if you have 300.000 US$ in a foreign currency account that can make a difference of + 100.000 Baht in only a few hours.

Edited December 3, 2015 by TheCruncher

[Awk]

I fail to understand this request for a guarantor, too. If I open an account, I deposit my own money and I can not spend more than I deposit. So what is the reason for someone to guarantee me?

As I was told it, it was related to possible problems with the money. Perhaps if the source of money were to be considered illegal, or something else bizarre, they could make a claim against the guarantor. Quite uncomfortable to ask somebody to guarantee that for me actually, and not something I would offer to guarantee for others unless it was somebody close and trusted.

In addition to the benefit mentioned by others (being able to do the currency exchange at a rate known exactly) I am currently having some problems with my home currency, which completely tanked relative to the baht a while ago (down 20+%). I however need to show money in a Thai bank account for three months in order to apply for a one year extension of stay later next year. Hopefully immigration will accept the FCD account as long as the exchange rate at the day I apply, presumably, shows the baht equivalent meets the requirements.

At the moment, I'm optimistically thinking it can't fall significantly further, and hopefully it will return back to previous strength in the not to distant future. Of course, if I'm guessing wrong by a substantial margin, I will end up losing out on this, and will perhaps not even be able to meet the financial requirements for the extension of stay.

Thanks for the other tips regarding charges. I'll be sure to check and double check that I will not be charged some percentage fee on my withdraw. But as long as over the counter withdraws in baht at the local branch are free of charge, there should be a way to avoid any extra charges, if by no other way then to withdraw the whole amount as cash at the counter and subsequently deposit it into my the local BHT account, before proceeding to do whatever I want to do using the Thai baht account.

For what it's worth, I have never experienced a swift transfer to my BB account to take less than two days, and normally it takes three. I have no idea on which end the delay is though. Also, unlike another bank mentioned here sometimes (SCB) nobody from BB has ever contacted me offering to hold the foreign currency until a more favourable rate can be negotiated, not even when I transferred an amount slightly less than two million BHT. They also refused signing me up for any sort of SMS alerts for my accounts unless I also had an ATM card for the acount.

As others here managed to open a foreign currency account at BB without undue problems, perhaps it is just another example of the silliness here. Perhaps if I had visited a couple of other branches, I would in the end have managed to open a FCD account with BB too. Since they said all such account had to be approved at the main branch in Bangkok, I'm not sure however.

Since Krungsri was such a breeze, and I don't have much positive to say about BB, possibly except that they have not stolen my money so far, I think I might switch to just using Krungsri as my regular bank for other things too, and just keep the minimum required to avoid charges in my BB accounts.

[sandyf]

Interesting topic.

Can any of the posters on this thread please share why to have a foreign currency account, and the benefits, please.

I'm assuming one of the reasons / maybe the prime reason is to keep your funds in a more stable currency. But that's my uneducated assumption.

Would you please share.

One of the main benefits is a lot less hassle if you want to repatriate funds. Once converted to baht it becomes another ball game.

[fletchsmile]

Yes the comment above on bid-offer spreads was just to say think about it. It's a potential pitfall which is what OP asked:

As PiB says different banks rates differ. Some are better and more competitive than others

In addition:

- the rate you get doing a counter transaction may not be as good as rates from elsewhere.

- SWIFT rates tend to be some of the best available to retail customers though there may be a time lag.

- I have accounts in Singapore where I can do online transfers instantaneously (not THB by the way) without the need to go to the bank or send a SWIFT message and wait. Generally the rates aren't as good as SWIFT. But it's something to think about if immediate transfer is important to you.

- Also if OP wants to transfer between different foreign currencies and not just into THB, then the bid-offer spread becomes even more relevant. eg OP has a USD account and wants to transfer into his EUR account. Transferring USD to THB and then THB to EUR via cash isn't really a good way to do it, even if instantaneous, particularly if there's then a fee to deposit into the EUR account.

So really just be aware of all the T&Cs, understand what you want to do, and be aware that there may be hidden costs.

Edited December 3, 2015 by fletchsmile

[TheCruncher]

Yes the comment above on bid-offer spreads was just to say think about it. It's a potential pitfall which is what OP asked:

As PiB says different banks rates differ. Some are better and more competitive than others

In addition:

- the rate you get doing a counter transaction may not be as good as rates from elsewhere.

- SWIFT rates tend to be some of the best available to retail customers though there may be a time lag.

- I have accounts in Singapore where I can do online transfers instantaneously (not THB by the way) without the need to go to the bank or send a SWIFT message and wait. Generally the rates aren't as good as SWIFT. But it's something to think about if immediate transfer is important to you.

- Also if OP wants to transfer between different foreign currencies and not just into THB, then the bid-offer spread becomes even more relevant. eg OP has a USD account and wants to transfer into his EUR account. Transferring USD to THB and then THB to EUR via cash isn't really a good way to do it, even if instantaneous, particularly if there's then a fee to deposit into the EUR account.

So really just be aware of all the T&Cs, understand what you want to do, and be aware that there may be hidden costs.

I have tested Kasikornbank on this issue a few times, because they told me that to exchange from a foreign currency account into Thai Baht, I would have the option to negotiate the exchange rate but they would use the Visa exchange rate as a standard.

So on a few occasions I called them up and asked what excahnge rate I would receive if I exchanged US$ at that particular moment, and each time was the rate I received better than the telex transfer rate.

[falang07]

It is indeed 500 Baht maximum for deposits but 500 Baht minimum for withdrawals in foreign currency. THB withdrawals are indeed free, they get the share on the exchange rate already.

Edited December 8, 2015 by falang07

[Awk]

It is indeed 500 Baht maximum for deposits but 500 Baht minimum for withdrawals in foreign currency. THB withdrawals are indeed free, they get the share on the exchange rate already.

How much is that share? I just checked the over the counter withdraw I did on December 19. That's a Saturday and I can't look up the rate for that day on

"https://www.bot.or.th/english/statistics/financialmarkets/exchangerate/_layouts/application/exchangerate/exchangerate.aspx", but using the rate of the day before

my over the counter withdraw provides the following information:

- Krungsri gave me 100,000 BHT.

- Using the BOT "sight bill" buying rate instead, I would have gotten 99,900. I.e., 100 BHT less than what I actually got.

- Using the BOT "transfer" buying rate instead, I would have gotten 100,268. I.e., 268 BHT more than what I actually got.