Money In The Bank

[Godders]

Re the problem of having 800,000 baht in the bank for three months before one applies to renew a "retirement " visa: isn't the answer to have TWO bank accounts?

The sum of 800,000 will earn a tidy sum in interest if left on deposit in a Thai Bank. I'm currently getting over four per cent gross. Then all you need is enough in a current account for everyday living expenses.

This way, you are never going to be caught short by the three month rule, and you will be doing what its drafters presumably want us all to do - committing funds long term to Thailand.

Well, that's the theory anyway. Doubtless somebody out there will now tell me why it won't work!

[Pseacraft]

Your thinking is about the same as mine. I would rather have an account set aside with the required funds in it period. Worst case is that it will be there in case of an emergency. I don't see how they could complain that you have the sum set aside in accordance with their rules, the only difference is that you don't use it. You would think that people would be doing this more than not.

Eric

[endure]

They may very well ask you what you're living on if the 800,000bt never decreases between one year and the next.

[JR Texas]

They may very well ask you what you're living on if the 800,000bt never decreases between one year and the next.

JR Texas (51, USA): I was under the impression that Thai banks no longer pay interest on foreign savings accounts. Does anyone have solid info. on this? I am almost certain that this is the policy of Bangkok Bank. Am I wrong?

[lopburi3]

Interest is paid on baht accounts in my experience at Bangkok Bank (but my account is joint so may not be valid for discussion). The question is if immigration will accept accounts other than passbook savings type. Some seem to accept and some seem to reject. But lately have seen more people reporting they were able to use time deposit so it is worth the effort to ask at the office you will be using.

[naka]

They may very well ask you what you're living on if the 800,000bt never decreases between one year and the next.

JR Texas (51, USA): I was under the impression that Thai banks no longer pay interest on foreign savings accounts. Does anyone have solid info. on this? I am almost certain that this is the policy of Bangkok Bank. Am I wrong?

I've always been paid interest on passbook savings acounts in Thai banks.

Naka.

[Noel]

They may very well ask you what you're living on if the 800,000bt never decreases between one year and the next.

JR Texas (51, USA): I was under the impression that Thai banks no longer pay interest on foreign savings accounts. Does anyone have solid info. on this? I am almost certain that this is the policy of Bangkok Bank. Am I wrong?

Yes. Thai banks, including Bangkok Bank, most certainly do pay in interest on foreign savings accounts.

For current rates click on: Bank of Thailand Interest Rates

[dsfbrit]

When I go to Immigration next year I will show them:

A bank book that had (in my case -marriage extension) 400,000 baht in it 1 year before.

Then the amount will have decreased by around 30000 baht a month (ie; my living expenses - not really see below.)

They will see I topped it up 3 months before my visa renewal to around 600000 baht. This will allow me to spend 30000 baht a month - 3 month before my visa renewal and 3 month after - while I wait for the marriage extension.

I will therefore not go below 400000 baht during this period.

Although my budget is not 30000 baht a month but much higher - my experience of Thai immigration is they want to see a 'story' that matches their requirements.

If you do what you suggest above they will almost surely go into 'error' mode with questions such as 'so what do you live on then - where does the money come from you live on' etc...and you may make them very unhappy.

Up to You.

Good luck with it...

[Maestro]

If you do what you suggest above they will almost surely go into 'error' mode with questions such as 'so what do you live on then - where does the money come from you live on' etc...and you may make them very unhappy.

Dsfbrit, and also Endure, please note that the original poster, Godders, talks about having two bank accounts: a time deposit account with a permanent balance of 800K, and a savings account for his living expenses. Therefore, the savings account can serve as proof of regular withdrawals for living expenses.

I was under the impression that Thai banks no longer pay interest on foreign savings accounts.

Just the other day, I heard that the Khlongsan branch of Bank of Ayudhya refuses to open a regular, interest-paying account to a foreigner and said that a “new law” stipulates that they can only open a non-resident savings account for him, with zero interest.

This is one of those cases where you simply move on to the next bank or another branch of the same bank, who will welcome you with open arms, because there is no such “new law” forbidding banks to open a regular, interest-paying savings account for a foreigner. Useless to argue with a refusing bank, just move on and give your business to a more customer-friendly bank.

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Maestro

[dsfbrit]

Dsfbrit, and also Endure, please note that the original poster, Godders, talks about having two bank accounts: a time deposit account with a permanent balance of 800K, and a savings account for his living expenses. Therefore, the savings account can serve as proof of regular withdrawals for living expenses.

Maestro[/size]

Yes I saw that - and you are right - I could have 400k baht in a time deposit account and - by defintion I dont touch it for a year.

Then when I go to Immigration I show them another bank book with say 30000 baht a month coming in and going out for living expenses for the previous 12 months.

I am simply - and respectfully - saying that Immigration may be interested in where this money came from. I know they should not be interested, but my experience with Immigration officials is its a lottery.

So best to play to the spirit of the law as well as that which is written.

Mind you I am a bit twitchy now - last year I dropped below the 400k baht amount when under consideration(by mistake) and would have got a 7 day stamp had the friendly local Immigration Officer not phoned my wife and said we had a problem.

Who needs the hassle or uncertainty for the sake of 4 percent gross interest on 400k or 800k baht.

Life is too short in my opinion.

But we are all different - and its what makes life so interesting.

good luck godders

[sanook1]

They may very well ask you what you're living on if the 800,000bt never decreases between one year and the next.

JR Texas (51, USA): I was under the impression that Thai banks no longer pay interest on foreign savings accounts. Does anyone have solid info. on this? I am almost certain that this is the policy of Bangkok Bank. Am I wrong?

Yes. Thai banks, including Bangkok Bank, most certainly do pay in interest on foreign savings accounts.

For current rates click on: Bank of Thailand Interest Rates

whatever you are doing should be ok as long as you are not a drug dealer or pimp and that you pay your taxes as everyone should.....whats the worry? lol

[Maestro]

I could have 400k baht in a time deposit account and - by defintion I dont touch it for a year.

Then when I go to Immigration I show them another bank book with say 30000 baht a month coming in and going out for living expenses for the previous 12 months.

The original post was an interesting suggestion for discussion, and I agree that it is more than a little iffy. One immigration office may accept it, another not. Or the same immigration office may accept it today, but not next month. Regrettable, but “c’est la bloody vie” (translation, taken from “The Life of Brian”: life’s a shit, when you think of it)

---------------

Maestro

[WilliamIV]

For the 8 years I have had "Retirement Visa extensions"

there has been no usage in my account - just a static Balance

But I do qualify for Income - so maybe they

approved my extension on income

Originally my Bank - Standard Chartered

was paying interest - but stopped some years ago

I also have a "Non Immigration" account with UOB

- they also stopped paying interest to myself and another non thai

Someone just touched on Taxation

To my knowledge Retirees are not expected to pay income Tax

Interest on a Bank account will have "Holding Tax" deducted from it

and sent to the Tax office - which could result in your being asked to Register for Tax - and MAYBE assessed for tax on all your Income ????

Another thought:

Some Banks maintain Foriegn Currency Savings Account

So you might be able to hold your Immigration

Funds in a Dollar , Sterling or Euro SAVINGS Account

Bill

[endure]

If you have a fixed term account which pays interest you will pay 15% witholding tax on it. The withholding tax can be reclaimed from the tax office the following year. If you claimn between January and March it's free. If you claim after March you have to pay a 'late claim' fee of ~100bt. Of course, in order to do this you need to get yourself a tax card.

[Firefan]

Endure; so one can re-claim the withholding tax? Never heard that before so interesting. Why then withhold it in the first place? Or do you mean offset against tax deductions one might have? What would that be?

Cheers!

[Noel]

For the 8 years I have had "Retirement Visa extensions"

there has been no usage in my account - just a static Balance

But I do qualify for Income - so maybe they

approved my extension on income

Originally my Bank - Standard Chartered

was paying interest - but stopped some years ago

I also have a "Non Immigration" account with UOB

- they also stopped paying interest to myself and another non thai

So you still have money in these banks and receive no interest?

Why have you not moved your funds to one or more of the many banks that do pay foreigners interest...?

[Naam]

"I am simply - and respectfully - saying that Immigration may be interested in where this money came from. I know they should not be interested.."

*****

let's be reasonable! "they" have all the rights to be interested as the law states clearly that the money in question has to come from abroad. if not, the immigration would have to inform the taxman to check whether the money was made in Thailand and whether the appropriate taxes have been paid.

[Noel]

"I am simply - and respectfully - saying that Immigration may be interested in where this money came from. I know they should not be interested.."

*****

let's be reasonable! "they" have all the rights to be interested as the law states clearly that the money in question has to come from abroad. if not, the immigration would have to inform the taxman to check whether the money was made in Thailand and whether the appropriate taxes have been paid.

There can surely be no room for argument with the above, although it is telling that from time to time the 'bleeding obvious' has to be restated.

To my mind, the underlying intent of the recent changes was to target those 'pseudo-tourists' who were cynically and blatantly flouting the system as they worked illegally in the Kingdom.

I have no sympathy with their ilk, although I do empathize with the under-fifties who are financially secure and have no ostensible need or desire to live outside of the law. It seems that the powers that be do not recognize such contributors to the Thai economy, although why that should be the case remains a mystery.

They are the ones that find themselves in no man's land, yet I am quite confident that: 'where there's a wallet there is a way' for them...