Transferring dollars into a dollar denominated account in Thailand to get a better rate?

[islandguy]

Since I didn't find a recent thread on this topic, is there anything I need to consider before I send USD to my wife's foreign currency account here in Thailand? She has checked that she can open such an account with SCB but hasn't done so yet. I have been transferring funds into Thailand from another country with the conversion from dollars to baht done by the transferring bank, but the rate they give me seems to be about 3% less than the exchange rate available here at SCB. Any thing to watch out for and suggestions as to best bank would be greatly appreciated. Is there still a minimum amount to avoid some kind of withholding?

[trd]

I've just recently looked into foreign currency accounts with SCB and you should be aware that you will be charged a commission of 0.2% on the inward remittance. I was interested in GPB but I'm sure it would be the same for USD. Once here the interest rate is extremely low for pounds 0.3% and zero for USD. For some reason I was told I had to open the account with 800 pounds in cash so presumably it would be the dollar equivalent for a USD account. They didn't have the currency and suggested I go to the airport to buy it. I didn't get that far as I decided not to go ahead. With SCB you cannot have a joint foreign currency account in a Thai and a foreigners name, but that is not the policy with Bank of Ayudhya which would have been my choice. Hope that helps. The initial cash deposit is charged at 0.5% commission.

Edited June 1, 2016 by trd

[lopburi3]

You save money by sending as foreign currency and having conversion be done here in Thailand - there is no foreign currency account required. The best method is to have wife open a normal baht savings account with Bangkok Bank and then you can make domestic transfers using there office in NYC routing code from the USA with the ACH transfer system. No wire transfer charges (small fee at BBL NYC) and when it gets to Thailand you receive the full TT rate (published daily or more often) less a .25% fee in range 200-500 baht max.

Current exchange rate is 35.50

Edited June 1, 2016 by lopburi3

[THAIJAMES]

I've just recently looked into foreign currency accounts with SCB and you should be aware that you will be charged a commission of 0.2% on the inward remittance. I was interested in GPB but I'm sure it would be the same for USD. Once here the interest rate is extremely low for pounds 0.3% and zero for USD. For some reason I was told I had to open the account with 800 pounds in cash so presumably it would be the dollar equivalent for a USD account. They didn't have the currency and suggested I go to the airport to buy it. I didn't get that far as I decided not to go ahead. With SCB you cannot have a joint foreign currency account in a Thai and a foreigners name, but that is not the policy with Bank of Ayudhya which would have been my choice. Hope that helps. The initial cash deposit is charged at 0.5% commission.

I don't think that is correct, I have a number of foreign currency accounts with SCB. There is no commission or any fees for incoming wire transfers (besides the bank transfer fees)

I think the .2% is if you want to transfer money out of the account to an account overseas in the foreign currency. Also if you want foreign notes its a 2% fee.

They expect you at some point to convert your foreign currency to Thai Baht. They make their money from the currency exchange.

So if you are eventually going to bring in money and convert it to Thai Baht then this type of account makes sense as you can time the exchange when the rate is high instead of accepting the rate at the time of transfer. They will give you the TT rate.

In the long run this can save money if you make frequent transfers into the country. as you save in transfer fees and not having to convert to baht all at once. (if you think the baht is going to get weaker compared to your currency)

Do note however that it is a lengthier process to take out baht and the baht needs to be transferred to another local account.

Edited June 1, 2016 by THAIJAMES

[islandguy]

Thanks for the replies

[Pib]

You are charged a SCB fee of 0.25% (Bt300 min, Bt500 max) for an inward wire, whether going into a baht account or FCD. Pretty standard for all Thai banks to charge this inward fee of 0.25% with minor variation of the min and max fee...usually between Bt200 min to Bt500 max. Any other fees will be from the Sending and Correspondent banks you use.

The Thai bank inward receiving fee will most likely not be posted on your SCB statement as the fee is deducted before posting to your account just as correspondent bank fees are sliced off as the funds flow through them. Since the inward receipt fee is deducted before posting this can fool people into thinking no fee was applied.

Also, if sending to a Thai baht account do not let the Sending/correspondent bank convert to baht for you...you will end up getting an exchange rate several percent below the Thai bank TT Buying Rate used for incoming transfers. Let the Thai (receiving) bank accomplish the conversion.

And don't open a FCD because you think it will save on fees or get you a better conversion rate. When you do a transfer from the FCD to a Thai baht account you receive the TT Buying Rate just like you receive if initially sending the money to a Thai baht account. And as mentioned the inward fee still applies to both a baht and FCD. Plus, with a FCD you need to watch out for minimum amounts in the account to avoid fees. Some like to use a FCD because it allows them to exchange funds at a drop of a hat when the exchange rate peaks. But as mentioned with a FCD there are other fees that might bite you.

http://www.scb.co.th/stocks/media/ratesfees/fcd-fee-en-55-1.pdf

Edited June 2, 2016 by Pib

[ExpatOilWorker]

It is all FREE with UOB.

(http://www.uob.co.th/en/personal/deposit-foreign-currency-deposit-account.html)

Deposit Commission

• Banknote : 0.50 % commission in lieu of exchange
• T/T, Swift, Export Bills, and Foreign Bill: Free of charge

Withdrawal Commission

• D/D, T/T, Swift 0.125% minimum USD 10 plus communications expense Baht 500 (in case of effect in full amount: our charge USD 10 for USD currency, and USD 15 equivalent for other currencies)
• Import settlement: 0.25% flat
• T/C 0.125% minimum USD 10, plus 1% and Baht 3 stamp duty
• Banknote 0.50% commission in lieu of exchange
• Convert into Thai baht free of charge