SCB Bonus account - why higher interest

[islandguy]

My wife wants to open an account at SCB that requires a monthly deposit for a fixed period of time and a fixed amount each month. Interest rate is 2.25%  Penalty for early withdrawal. I think they call it the 'Deposit 'Bonus 20 Month Account'. Anybody know the details of this account? Sounds too good to not have a catch.

[meatboy]

normally these are savings accs.for thai's only.

you put in a fixed amount every month for 2yrs.min.is 1,000bht.max.25,000bht.interest is paid on maturity.

tax free,my wife has one maturing shortly.

their new rate is 2.80% over 2yrs. thai credit union.

[islandguy]

Got the wife to pore over more details (never get that at branch, always just sales talk) and the interest is given at 6 months intervals. So interest twice a year rather than monthly.

[meatboy]

that doesnt sound like a savings account fixed amount to me,all current accs.pay interest over six months,i would be a bit wary as it could be a life insurance added.

if you want the wife to save monthly for 2yrs.fixed amount, as i said ours is 25,000bht.monthly over 2yrs,interest paid on maturity, at 2.80%=17,260interest.

scale is, 25k,20,15,10k,6k,5k,2k,1k.

we have a few different accs.with LH BANK. and their savings rates are not to bad either.

but be on your guard the the banks are pushing accs.with life insurance.

[islandguy]

Thanks for the warning. Still irate over them selling her life insurance during a routing bank visit with no real understanding of the details. Turned out to be a reasonable product but I felt they really suckered her into the buy. Financial literacy is abysmal in this country.

[meatboy]

there are quite a lot of stories regarding bank staff and what they tell you,[read topic bank interest rates] 

its almost imposible for a thai to understand most of their products.

one eg.is when they advertise, say 3% savings rate splashed all over their windows and doors only you find the rate start at 1% up at steps which when calculated is more like 2%.

 

[khunPer]

No catch, if you keep the agreement – i.e. pay the agreed amount in monthly for the fixed term – that's the Thai-way of saving, having a nice lump sum after two-three years plus a better interest than normal, about 3% recently.

[4MyEgo]

What's that saying, "if it sounds too good to be true, then it means, its too good to be true"

[islandguy]

Wife sent this offer over to her sister the accountant. Turns out the fund is tied into the Thai stock market. While SCB is a pretty huge player on the local money scene, I feel the local exchange Could be stronger on insider trading controls so advised her not to pick that product for saving.

[Autonuaq]

Summary of a complex story:

Thailand has the world income agreement with many countries and you only have to pay tax over the income on the place it is earned.

Due to this Income tax income you have one place in the world that is is your world income tax place and country and here all taxes come together.

Here you have to pay all the tax and comply to the local tax rules and regulation. You do not have to pay tax over income that the tax has been paid in one of the other counties Thailand has the agreement with and visa versa.

So in the country you have the world income tax you pay only tax over the rest that has been untaxed income.

They exchange tax information based on the Tax ID.