Moving to Chiang Mia - advice on banking procedures please

[Tib6005]

Hello everyone

I'm new to this site, and currently making preparations to move from the UK to Chiang Mai on a Retirement Visa. I'm hoping to be in CM by the end of June.

Please can someone advise me on the least complicated way, and least expensive way, to transfer my monthly private pension from my UK bank account to a Thai bank account, which I will open once my move is complete. I understand that the funds need to be transferred in Sterling to acheive the best rate, but the cost for doing this seems expensive - around £20.00 per transaction. The only way I can think to reduce this fee is by transferring several months pension in one transaction.

Would it benefit me to open a Bank Account with Bangkok Bank in London ?

Any advice and recent experience would be so helpful, and your views on good/not-so-good banks would be really appreciated.

Thank you so much

[Mekong Bob]

definitely recommend opening account with Bangkok Bank in Thailand. Once estabished, simply wire transfer your monthly amount from your local bank to Bangkok Bank in London and BBL will promptly transfer that amount to your BB account in thailand. service charges are negligible.

[NancyL]

You may wish to read this page from the Bangkok Bank website: http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/TransferingFunds/TransferringIntoThailand/ReceivingFundsfromUK/Pages/ReceivingFundsfromUK.aspx

Bangkok Bank's branch in London isn't a retail branch. It's a commercial branch used to facilitate transfers between the UK and Thailand. You should open your Bangkok Bank account here in Thailand, selecting a "home" branch near where you plan to live since you'll find there are "out of area" charges for routine banking services like ATM withdrawals from a Bangkok Bank ATM if you open your account in a part of the country where you don't live.

In my opinion, Bangkok Bank is indeed the best bank for Chiang Mai retirees to use for a variety of reasons, and their London and NYC branches are just two reasons. It means that UK and USA retirees have access to reduced cost ways to transfer funds, esp. pension payments, into Thailand.

[NancyL]

definitely recommend opening account with Bangkok Bank in Thailand. Once estabished, simply wire transfer your monthly amount from your local bank to Bangkok Bank in London and BBL will promptly transfer that amount to your BB account in thailand. service charges are negligible.

Actually wire transfers may not be the most economical way to transfer funds. Direct deposit of pension checks is the most cost effect way to bring funds into Thailand. If you don't want to do that, ACH transfers from the U.S. are more economical than wire transfers and it seems that UK people can use something called Faster Payment Services or BACS.

It looks like the U.K.'s "Faster Payment Services" is their version of an ACH transfer. In the U.S. we put in a routing number and account number for a domestic transfer and we use the routing number for Bangkok Bank's NYC branch and our own account number. Our U.S. bank "thinks" it's a domestic transfer and doesn't charge a foreign fee, but Bangkok Bank NYC looks at the account number and the first three digits tell them the branch that should receive the funds.

It looks like the Brit's Faster Payment Services works in much the same way.

As the Brits say "Brilliant!"

[CharlieH]

If it is possible and practical for you to move once a quarter it would save on charges.

Have your pension paid into your UK bank account then transfer to Bangkok Bank (in sterling) via London, link provided above.

If you get caught short in a month you can always draw over the counter in the bank with your passport and appropriate card, you will know your own UK Bank fees for doing so. (hopefully)

[MadMac]

Standard Chartered was an option in the past too, if you had accounts locally and abroad, but they closed the CNX office last year. Would have to go to Bangkok and do inter-regional transfer to Chiang Mai which depending on the bank may cost extra.

Can't comment on the BKK Bank office in US or UK, the one in Singapore is dysfunctional for personal money transfers.

Edited April 12, 2016 by MadMac

[CharlieH]

Just to reiterate the OP is in the UK so advice and comment re USA is not relevant.

[sappersrest]

Nancyl is spot on and so is Charlie thats how we transfer once a quarter saves on fees, I know that barclays is not keen on you keeping your a/c if you move out of the country make sure you have a trusted UK address to register your A/C with.

Good luck.

[BritManToo]

If you tell the UK pensions dept you are moving to Thailand, they will freeze your pension, no increases.

If you have your pension directly moved to Thailand each month, it may be taxable in Thailand.

Let it accumulate in your UK bank account. Transfer once a year.

I like to use HiFx, an online currency transfer service, where you can use your UK debit card, and nobody gets to see a direct link of your money to Thailand.

Edited April 12, 2016 by BritManToo

[Tib6005]

Thank you all for such speedy responses ! I'm so impressed.

I've read that UK Banks like to close accounts if they know a customer has moved abroad, but as my UK account will continue to have regular transactions, I don't think that will happen.

The Bangkok Bank London Branch link was really helpful. From reading this, I gather I can transfer from my current bank account to BKK Bank, London, which would count as a domestic transfer, thus not incurring any fee. Once that's done, I guess I can make the transfer from BKK London, to BKK Chaing Mai. I hope I am interpreting this correctly. I did try to open a Thai Bank account on previous visits to CM in October 2015 and February 2016, but without my Retirement Visa, none of the banks would oblige.

[Tib6005]

Thank you for the comment regarding the Pensions Department, I've waded through their on-line information and it makes for very tiresome (though necessary) reading. My state Pension isn't due for another 10 years, so I don't feel I have to contact anyone about that just yet. I wasn't aware that my Private Pension may be taxable in Thailand.....

The on-line currency transfer service is something that I've read about, I just was unsure if it was less costly than bank transfers and if it's straightforward

[TheAppletons]

Thank you all for such speedy responses ! I'm so impressed.

I've read that UK Banks like to close accounts if they know a customer has moved abroad, but as my UK account will continue to have regular transactions, I don't think that will happen.

The Bangkok Bank London Branch link was really helpful. From reading this, I gather I can transfer from my current bank account to BKK Bank, London, which would count as a domestic transfer, thus not incurring any fee. Once that's done, I guess I can make the transfer from BKK London, to BKK Chaing Mai. I hope I am interpreting this correctly. I did try to open a Thai Bank account on previous visits to CM in October 2015 and February 2016, but without my Retirement Visa, none of the banks would oblige.

After you've opened your Thai Bangkok Bank account locally, when you transfer from your UK bank account to BKK London you'll use your local (in Thailand) account number. Bangkok Bank will do the rest for you....your baht will show up in your local account in 36-48 hours. It's a one step process for you.

[Tib6005]

" After you've opened your Thai Bangkok Bank account locally, when you transfer from your UK bank account to BKK London you'll use your local (in Thailand) account number. Bangkok Bank will do the rest for you....your baht will show up in your local account in 36-48 hours. It's a one step process for you." (I haven't got as far as working out how to include your comments in my reply, yet)

That sounds simple enough, too. Are the fees and exchange rates competitive ?

[TheAppletons]

" After you've opened your Thai Bangkok Bank account locally, when you transfer from your UK bank account to BKK London you'll use your local (in Thailand) account number. Bangkok Bank will do the rest for you....your baht will show up in your local account in 36-48 hours. It's a one step process for you." (I haven't got as far as working out how to include your comments in my reply, yet)

That sounds simple enough, too. Are the fees and exchange rates competitive ?

I initiate the process through BKK New York....it's a $10 fee in New York and then 200-500 Thai baht on the Bangkok bank Thailand end of the transaction (depending upon the amount transferred.) I would expect similar fees in London (and that website link probably tells you the exact fee structure from London.)

[55Jay]

<snip> (I haven't got as far as working out how to include your comments in my reply, yet)

Just touch the "Quote" button, lower right side of the comment box you want to respond to directly.

[CharlieH]

Although no fee for domestic transfer within the UK. There is a £20 fee that will be deducted prior to transferring to Bangkok Bank Thailand, they will also deduct a percentage in Baht but to a maximum of 500 baht dpependent on amount transferred. Details of this are on the website given previously.

In my experience, the transfer happened within 24 hrs of processing in the UK it was in the Thai account.

[Tib6005]

<snip> (I haven't got as far as working out how to include your comments in my reply, yet)

Just touch the "Quote" button, lower right side of the comment box you want to respond to directly.

Well, thank you

[Tib6005]

Although no fee for domestic transfer within the UK. There is a £20 fee that will be deducted prior to transferring to Bangkok Bank Thailand, they will also deduct a percentage in Baht but to a maximum of 500 baht dpependent on amount transferred. Details of this are on the website given previously.

In my experience, the transfer happened within 24 hrs of processing in the UK it was in the Thai account.

That's interesting. So, it would then be cost effective to make fewer transfers of larger amounts to keep the processing costs down. I'll read the website info thoroughly. Many thanks, CharlieH

[Tib6005]

" After you've opened your Thai Bangkok Bank account locally, when you transfer from your UK bank account to BKK London you'll use your local (in Thailand) account number. Bangkok Bank will do the rest for you....your baht will show up in your local account in 36-48 hours. It's a one step process for you." (I haven't got as far as working out how to include your comments in my reply, yet)

That sounds simple enough, too. Are the fees and exchange rates competitive ?

I initiate the process through BKK New York....it's a $10 fee in New York and then 200-500 Thai baht on the Bangkok bank Thailand end of the transaction (depending upon the amount transferred.) I would expect similar fees in London (and that website link probably tells you the exact fee structure from London.)

Thank you so much, Appletons. As ever, it seems that services are much less expensive in the US than they are in the UK, but the Thai 200-500THB fee doesn't sound unreasonable.

[cyberfarang]

Nancyl is spot on and so is Charlie thats how we transfer once a quarter saves on fees, I know that barclays is not keen on you keeping your a/c if you move out of the country make sure you have a trusted UK address to register your A/C with.

Good luck.

That`s exactly right. Had a whole load of agro with my Barclays accounts after I came to Thailand, was given all the wrong advice before I left.

Got round it by transferring my accounts and money over to Barclays Wealth, their offshore bank in the Isle of Man. But you must have a minimum of £25000 to open a Barclays offshore account and can`t ever let the account fall under that amount. It provides telephone banking, online banking and a debit card. Now I just let my pension accumulate for 12 months and bring the funds over once a year. I do this online very easily at a cost of £25 transferred in sterling to my Bangkok Bank account. I also have an online Bangkok Bank account and can see when the money is paid in. All as smooth as silk, no problems.

Only drawback with mainland and offshore UK banking is that the interest rates are crap.

[Torrens54]

Siam Commercial Bank in Chiang Mai used to be very good but staff have changed and they have become a pain in the backside.

Years ago I opened an Account with them when I was working here. Very simple, so introduced a RETIRING relative who moved here recently from the U.S.

They gave him a regular "run around" with all manner of dumb requirements so he went to Bangkok Bank and it was all done without a hitch.

Edited April 12, 2016 by Torrens54

[Bill97]

If you tell the UK pensions dept you are moving to Thailand, they will freeze your pension, no increases.

If you have your pension directly moved to Thailand each month, it may be taxable in Thailand.

Let it accumulate in your UK bank account. Transfer once a year.

I like to use HiFx, an online currency transfer service, where you can use your UK debit card, and nobody gets to see a direct link of your money to Thailand.

Taxable? Interesting, do you have more information about this?

[theoldgit]

If you tell the UK pensions dept you are moving to Thailand, they will freeze your pension, no increases.

If you have your pension directly moved to Thailand each month, it may be taxable in Thailand.

Whilst the UK State Pension is frozen if you move to some countries overseas, including Thailand, private pensions normally aren't. I get the full yearly uplift on my pension from my previous employer, the OP might want to check with his pension provider.

The UK and Thailand have a double taxation agreement, that means that most incomes taxed in one country wouldn't be taxed again if you're living overseas. Pensions fall into that category as they are taxed in the UK being the source of the income.

Some pension providers will deposit your pension directly into a Thai bank, negating the need for UK bank charges. Some will send Sterling whilst others will purchase Baht in the UK and send that. You will again need to check with your pension provider, both my pensions can be paid into my Thai bank, I'm led to believe the State Pension is paid at a competitive rate.

[rawhod]

I bank with Santander in the UK and Bangkok Bank in Chiang Mai.

Several years ago I set up my Bangkok Bank account as a payee on my Santander account. I set it up just as the Bangkok Bank describe in their information to transfer GB pounds sterling, via the BB London branch, to my BB Chaing Mai account so that the exchange takes place at the TT rate.

Santander charge me £20 per transfer, and Bangkok Bank charge me a percentage for the exchange.

Using the Santander Fast Transfer system, my money arrives in my Chiang Mai account the following day.

I have SMS notifications set up on my BB account so that I get a text message when my funds have been deposited in my account.

When I first set this up, the Fast transfer system was not in operation and I would have to wait 3 - 4 days for the money.

[NancyL]

Thank you all for such speedy responses ! I'm so impressed.

I've read that UK Banks like to close accounts if they know a customer has moved abroad, but as my UK account will continue to have regular transactions, I don't think that will happen.

The Bangkok Bank London Branch link was really helpful. From reading this, I gather I can transfer from my current bank account to BKK Bank, London, which would count as a domestic transfer, thus not incurring any fee. Once that's done, I guess I can make the transfer from BKK London, to BKK Chaing Mai. I hope I am interpreting this correctly. I did try to open a Thai Bank account on previous visits to CM in October 2015 and February 2016, but without my Retirement Visa, none of the banks would oblige.

It is possible to open an account at some local Bangkok Bank branches whilst on on tourist visa. Please read this thread:

http://www.thaivisa.com/forum/topic/906031-extra-step-now-for-opening-a-bank-account/?hl=%2Bbangkok+%2Bbank

and in particular this post: http://www.thaivisa.com/forum/topic/906031-extra-step-now-for-opening-a-bank-account/?p=10587815

This is merely a summary from their website: http://www.bangkokbank.com/BangkokBank/PersonalBanking/SpecialServices/ForeignCustomers/Pages/Openinganaccountnew.aspx

What has changed since the first of the year is that they're enforcing the requirement for a letter of reference for their files. No longer can someone on a short-term visa simply walk-in and be accepted because they "look OK" or have someone with them known to the bank officials as a reference.

So, Tib6005, I suggest you think about how you can come up with an appropriate reference to open an account whilst on a tourist visa. Obviously you won't have a work permit -- you're coming here to retire, after all. You probably won't have a purchase agreement for property either. Not a good idea to jump right in and buy housing right away, if at all as a retiree. But, perhaps you already have ties to someone or an organization in Thailand that could serve as a reference. Or your home bank would be willing to provide a letter of reference.

If you read through the first thread, you'll see that the branch at Kad Suan Kaew mall is friendly to western retirees. The OP concluded however, that they are not welcoming to Chinese customers. I found that interesting, but have to admit I don't see many Chinese customers there, but they do have utmost patience and respect for elderly westerners. Perhaps different branches have decided to have different "areas of focus".

[stephenterry]

I bank with Santander in the UK and Bangkok Bank in Chiang Mai.

Several years ago I set up my Bangkok Bank account as a payee on my Santander account. I set it up just as the Bangkok Bank describe in their information to transfer GB pounds sterling, via the BB London branch, to my BB Chaing Mai account so that the exchange takes place at the TT rate.

Santander charge me £20 per transfer, and Bangkok Bank charge me a percentage for the exchange.

Using the Santander Fast Transfer system, my money arrives in my Chiang Mai account the following day.

I have SMS notifications set up on my BB account so that I get a text message when my funds have been deposited in my account.

When I first set this up, the Fast transfer system was not in operation and I would have to wait 3 - 4 days for the money.

I do the same thing with my Lloyds TSB account, set up with my PO address which is my daughter's address in the UK. She also has Power of Attorney to act on my behalf, which is useful when dealing with UK financial institutions.

Please read the BKK UK instructions regarding transfers to Thailand. You have two choices (and two sort code numbers) where the exchange rate from £ to Baht takes place. The exchange rate in the UK is worse than the exchange rate in BKK, so opt for the exchange taking place in BKK. The trail is as follows:

UK transfer to BKK bank UK in £. A deduction of £20 per transaction is levied. £ is sent by BKK bank to BKK Thailand where the exchange takes place, and the resulting funds are credited to your local BKK account in Baht. Transfer costs are between 2-500 baht.

Next WORKING day delivery (subject to either UK and Thai bank holidays when a delay of one/two day(s) is normal). SMS confirmation (set up by your Thai bank). IMO, BKK bank is ideal for these transfers. If you have major remittances on a regular basis you also have the option of opening up a £ a/c at your local Thai branch (CM Airport Plaza branch is very knowledgeable and helpful) where £ is transferred there, and you can withdraw and exchange £ at the local market rate. Withdrawal costs are reasonable.

Edited April 13, 2016 by stephenterry

[Kabula]

It's important to understand that any information you receive now may all change, so keep that in mind.

The world banking system is currently stressed and no doubt procedures will change worldwide and perhaps this month.

My opinion of course...

It would be best to follow the International financial news from many sources, and then ask the same questions a couple of weeks prior to your arrival.

You will get excellent information here, but it's too soon to get spot on information. Whatever banking information you receive, confirm it with the bank branch Manager for accurate information.

It's best to open accounts at several bank branches close to where you live in Thailand. Most of the time any changes or corrections have to be done where the account was opened, which has been hard for me to wrap my head around! They will always ask for your passport.

If you have a retirement visa, and if you drive a motor vehicle, you are required by Thai law to have a Thai driver’s license. Thai banks will accept a Thai driver’s license instead of a Passport for identification. I recommend you check your home driver’s license and don't let it expire like I did. I had to start all over and had to sign up with Like English driving school to pass a very hard written exam and a challenging driver's course. It looks easy, but it's very different, especially when you are used to driving on the other side of the car. The day I applied, 200 applicants tested and only 20 of us passed both the written and driving test. The written test was changed and is tricky.

I recommend you open savings accounts with Bangkok Bank, Kasikorn Bank and Siam Bank if you can, with International ATM cards linked to the savings account. Be sure that they do not sign you up for their accident insurance when applying for your ATM card, and charge you like Siam Bank did to me. I was over the age limit at the time of the application. Be aware of the age limit and policy limits and they are very low. I also recommend you apply for a Thai credit card. Not all banks will issue you one. I got mine from Bangkok bank. However, you have to fund the account and if you close it, they will not pay you for 3 months!

Also, I was informed by Kasikorn bank that because I have a retirement visa stamp in my passbook; if I close my account they will not open a new account unless I have a work visa! I had an account with them and all mentioned banks for 9 years! Everyone that is retired should be aware of that and discuss that with all their banks prior to closing any account.

If you choose the combination financial qualifier for your retirement application be aware that the exchange rates may change dramatically over a 3 month period as the funds have to be seasoned in a Thai bank for 3 months prior to the application appointment. Some applications are concerned about depositing 800,000 THB minimum in the bank here for 3 months. That is a personal choice. I've never had a problem to date. It was recommended to me to have said funds in a savings account, not a fixed account. However, if a withdrawal is made, not to drop the principal balance below the minimum limit. This can be tricky with exchange rates the way they are. This is why I do business with several banks.

I personally use a Kaskiorn Bank savings account for my 3 month seasoned funds as they will provide me with a confirmation of funds letter for Immigration the same day I ask for it. I personally found Siam Bank a bit unreasonable when I asked for a confirmation letter. It takes 5 minutes if that and twice in two years they asked me to come back the next day with an empty office. After getting the signed letter, have another bank representative check it for accuracy. Many errors are made. If there is an error, Immigration will reject it and there will be a delay.

Also, a multi entry stamp in your Passport is recommended for retirees. If you forget to apply for a re-entry stamp and leave the country you lose your retirement status!

I'm a U.S. citizen and I find Kasikorn Bank gives me a better exchange rate on wire transfers from the U.S. That may not be the case with other foreign countries.

When sending outgoing wires to your home country, ask what the exchange rate is at the time as it is not the same as posted on a web site. For the best exchange rate, let the Thai bank to the exchange and send it in your home currency. When using your home credit card in Thailand, tell the cashier you want the transaction done in Thai Baht.

The best advice I can give you is after you get here find several seasoned expats that have lived here for many years and ask questions about personal relationships and anything financial. It could save you heart ache and your life savings!!

And read the book, “Private Dancer.”

I wish the best of luck to you.

I love Thailand……

[NancyL]

Wow, Kabula has made his life rather complicated in doing business with three Thai banks, but some people like to make sure they're getting the BEST possible rate for everything and turn leaving cheaply and saving money into a hobby. For starters, opening an account with Bangkok Bank is the way to go and then you can explore other banking options after that.

Good advice for single older guys on reading the book "Private Dancer" by Stephen Leathers prior to retiring here.

[Freespirit39]

Hi,

I tend too agree with posts saying Bangkok Bank is about the best! I use the branch in the main shopping Mall at Kad Suan Kaew. This may be a bit inconvenient for you until you learn your way about, or get a car. However the guy there speaks very good English and has always helped me expedite things. Years ago he opened a Sterling A/c and of course a Baht A/c. I could then transfer Sterling and change as an when needed according to exchange rates. One cheap way is to give him (the Bank) a cheque for x thousands and it takes 30 days to transfer, but the charge is about 500 Baht. No charge at your Bank as you are cashing a cheque, well never used to be but you know how Banks change their rules.

Finally rent a house which can be cheap depending where you rent. One good thing with renting is you can move if you get inconsiderate neighbors. Also people will say you can buy but don't believe it. After many years have bought a Condo which a foreigner can own. It suits me as I travel quite a bit and have no worries about it. I am in ChiangMai now, and the pollution is quite bad; maybe you will take a trip for a month or two during March April when you settle here.

Good luck with your move, I have never regretted it!!

[bazza40]

I've found Bangkok Bank to be quite reasonable, and the conversion rate they use is only 0.3 - 0.4 baht below the cross rate.

Some points to note:

1/ If you can afford to do so, transferring a year's pension in one transaction lowers the transfer cost significantly.

2/ Maintain a debit card you can use at an ATM in Thailand with your UK bank, for unforeseen expenses.

3/ From next August, I understand the Thai government's deposit guarantee drops from 25 million baht to only 1 million baht. So you may need to open more than one account, and it has to be with a different bank. Two accounts adding up to more than 1 million baht with the same bank will only be covered for the first million.

4/ If using an ATM, always use one attached to a bank DURING bank business hours. That way if your card gets swallowed you can address the problem immediately.

5/ I prefer to withdraw cash via a savings passbook for day-to-day expenses. If you lose a credit card here, or are defrauded, it is problematical what will happen by way of redress, due to the language barrier. If there is a more secure system in Thailand than the savings passbook which also requires your passport and signature to make a withdrawal, I have yet to see it.