What is the best way to transfer CHF 800K to Thailand?

[samz]

Hello,

here is below 8 questions I have for the main Thai banks. Do you know the answer for some of those questions?

Thanks in advance & regards,

Samz

 

 

I am 50 years old Swiss citizen and I will retire in Thailand next year. I would like to open a bank account to transfer CHF 800,000. I would like to avoid fees and bad currency rate on this transfer.

 

ABOUT THE TRANSFER
1. Can I transfer this huge amount: CHF 800,000?
2. What is the best account to transfer CHF 800,000 to Thailand?
3. Should I first transfer this amount to a Swiss franc account*?
4. Do you use the market currency rate if I transfer the money to a THB account?

BANK ACCOUNT
5. Can I open a Swiss franc account?  What is the interest rate?
6. Will I pay tax for the capital if I'm not resident? How much?

ONLINE SERVICE
7. Do you have an online e-Banking service?
8. Can I set a permanent monthly transfer** in this e-Banking?

 

*  To avoid bad currency rate.
** I would like to set an automatic monthly transfer of 170,000 THB to my father in law account at SCB.

[Halfaboy]

What will be the purpose of the money. Do you want to buy a house,  car, do you want to invest or maybe something else.

Edited January 22, 2017 by Halfaboy
spelling

[samz]

I will use this money to live in Thailand and to support my wife's family. Not to buy a car/house. Maybe I will deposit a big part of this amount on a Fixed Deposit Account for 12 months to get more interest.

[Halfaboy]

Did you consider opening an account in one of the surrounding nations, i.e.Singapore ?

 

Their banking system is reliable and has a track record of many years. You can open accounts in many currencies. See for example https://www.ipb.citibank.com.sg/portal/home_english/citi_home.htm?lid=IPBCNCBGKBHETLCitibank, but there are many more banks operating.

 

I would have more thrust in these banks than in the Thai banking system.

[samz]

My goal is to avoid international transfer fees (12 or 6 transfers a year for many years) and the bad currency rate conversion:

... charges a 0.25% fee of the total remitted amount (minimum Baht 200, maximum Baht 500)

So, I guess it's better to make only one huge transfer to a CHF account. Isn't it?

CHF account advantage: avoid the bad currency rate conversion applied by the bank(s).

CHF account disadvantage: no interest (0.00%).

 

[Swiss1960]

@samz: Here from a fellow Swiss who is already living in Thailand:

 

1. Recommendation: KEEP your Swiss bank account when ever possible, you will have to start to talk with your bank in advance, it takes some time to make them understand that you need your account (i.e. in the form of a managed asset account as I have with UBS) and also keep the credit cards, AT LEAST until you are settled in Thailand and ready to cut all ties to Switzerland.
   
    
2. Do you really need to transfer 170'000 Baht per month to your father in law? Sounds like an incredible high amount. But even then, as 170K Baht is around 4'900 CHF, you could transfer 100'000 CHF to a Thai Bank and pay your father in law for 20 months before you need to transfer again. 
    
3. Each transfer from UBS to my SCB account is done with "all cost to the receiver" and "send in CHF". UBS will charge me with CHF 5.-- and SCB will charge me with THB 500 (CHF 15), thus CHF 20.-- per transfer. If you transfer 100K CHF every 20 months, then CHF 20.-- is not really an issue, is it?
    
4. For the transfers it is important to give a reason for the transfer and it is best to write in your transfer instructions "for buying property". It does not matter, you can still use it for personal use. Then your bank will call you and tell you that a high amount of money arrived and will tell you that One: They give you a better TT exchange rate than on their website (only few cent (satang), but for high amounts worth while) and Two: They will tell you that you can wait with the conversion, if you do not like the rate given and with SCB, I can wait up to ONE year until I do the conversion. 
    
5. I am banking with both SCB and Bangkok Bank here in Pattaya where I live 20 min outside. I transferred to both banks with equal conditions as described above under 3. I have now received credit cards from SCB which I use locally and the UBS credit cards only when I am in holiday outside Thailand. Both banks have internet and mobile banking which I use widely. 

To summarize: You should open a  THB account, I am not even sure whether you can get a CHF account. Keeping the CHF account at least for now is almost a MUST, if only to pay the reminder of your Swiss bills that will come after you leave. I still have some bills coming, i.e. for my fraternity and alumni clubs, for my former bands and of course also for the "Freiwillige AHV/IV) and it is much more convenient to do this through my Swiss e-banking and not having to worry about exchange rates. 

 

Should you have more questions, you will know about the PM (personal message) function on this site and you are welcome to ask me at any time (German or English, my French is rusty and my italian does not cover anything other than food)

 

[Swiss1960]

4 hours ago, samz said:

My goal is to avoid international transfer fees (12 or 6 transfers a year for many years) and the bad currency rate conversion:

... charges a 0.25% fee of the total remitted amount (minimum Baht 200, maximum Baht 500)

So, I guess it's better to make only one huge transfer to a CHF account. Isn't it?

CHF account advantage: avoid the bad currency rate conversion applied by the bank(s).

CHF account disadvantage: no interest (0.00%).

 

 

IF you can get a CHF account (not sure about that), you could of course transfer the whole lot in one GO and only pay 5 CHF to your Swiss bank. BUT the charges for the currency conversion (as far as I know you pay the 0.25% (200/500) per conversion also), will still be there.

 

Main disadvantage you missed: protection of your money in Thailand, if the bank should file for bankrupcy: Currently, this amount is pretty high, but it is planned to take this amount down to approx CHF 30'000 (1 million Baht) per bank customer... the rest of your money would be lost. IF however you keep it in a Swiss managed account, then the full amount would be secure in case of bankrupcy of the Swiss bank (only current accounts are limited to CHF 100K, but not managed accounts compromising of shares etc.)  

[topt]

5 hours ago, Swiss1960 said:

@samz: Here from a fellow Swiss who is already living in Thailand:

 

1. Recommendation: KEEP your Swiss bank account when ever possible, you will have to start to talk with your bank in advance, it takes some time to make them understand that you need your account (i.e. in the form of a managed asset account as I have with UBS) and also keep the credit cards, AT LEAST until you are settled in Thailand and ready to cut all ties to Switzerland.
   
    
2. Do you really need to transfer 170'000 Baht per month to your father in law? Sounds like an incredible high amount. But even then, as 170K Baht is around 4'900 CHF, you could transfer 100'000 CHF to a Thai Bank and pay your father in law for 20 months before you need to transfer again. 
    
3. Each transfer from UBS to my SCB account is done with "all cost to the receiver" and "send in CHF". UBS will charge me with CHF 5.-- and SCB will charge me with THB 500 (CHF 15), thus CHF 20.-- per transfer. If you transfer 100K CHF every 20 months, then CHF 20.-- is not really an issue, is it?
    
4. For the transfers it is important to give a reason for the transfer and it is best to write in your transfer instructions "for buying property". It does not matter, you can still use it for personal use. Then your bank will call you and tell you that a high amount of money arrived and will tell you that One: They give you a better TT exchange rate than on their website (only few cent (satang), but for high amounts worth while) and Two: They will tell you that you can wait with the conversion, if you do not like the rate given and with SCB, I can wait up to ONE year until I do the conversion. 
    
5. I am banking with both SCB and Bangkok Bank here in Pattaya where I live 20 min outside. I transferred to both banks with equal conditions as described above under 3. I have now received credit cards from SCB which I use locally and the UBS credit cards only when I am in holiday outside Thailand. Both banks have internet and mobile banking which I use widely. 

To summarize: You should open a  THB account, I am not even sure whether you can get a CHF account. Keeping the CHF account at least for now is almost a MUST, if only to pay the reminder of your Swiss bills that will come after you leave. I still have some bills coming, i.e. for my fraternity and alumni clubs, for my former bands and of course also for the "Freiwillige AHV/IV) and it is much more convenient to do this through my Swiss e-banking and not having to worry about exchange rates. 

 

Should you have more questions, you will know about the PM (personal message) function on this site and you are welcome to ask me at any time (German or English, my French is rusty and my italian does not cover anything other than food)

 

Just to add to this here are links to SCB's charges/costs - and yes CHF is mentioned

From here http://www.scb.co.th/en/about-scb/rates-and-fees - and CHF interest rate is 0%.

http://www.scb.co.th/stocks/media/new-ratesfees/fcd-fee-en-59-2.pdf

http://www.scb.co.th/stocks/media/new-ratesfees/fcd-con-en-59-1.pdf

 

Bangkok Bank web site is usually better than SCB so I am sure the same info is available there.

[meatboy]

17 hours ago, samz said:

I will use this money to live in Thailand and to support my wife's family. Not to buy a car/house. Maybe I will deposit a big part of this amount on a Fixed Deposit Account for 12 months to get more interest.

you are going to walk on a SLACKROPE.YOU DO NEED TO READ UP ON MARRYING INTO A THAI FAMILY.to start with.

as for transfers,bank charges and interest that is one big headache if you are hopeing for income from your investment then think again.

interest in thai banks is very low,and its not getting any better.going back a few yrs.there was plenty over 3% fixed.

living here is not a bed of roses anymore,unless you can live on pensions and income from outside of thailand.

its all PAY PAY PAY so do your sums before you think of all what you wish for.

good luck.

[meatboy]

4 hours ago, meatboy said:

you are going to walk on a SLACKROPE.YOU DO NEED TO READ UP ON MARRYING INTO A THAI FAMILY.to start with.

as for transfers,bank charges and interest that is one big headache if you are hopeing for income from your investment then think again.

interest in thai banks is very low,and its not getting any better.going back a few yrs.there was plenty over 3% fixed.

living here is not a bed of roses anymore,unless you can live on pensions and income from outside of thailand.

its all PAY PAY PAY so do your sums before you think of all what you wish for.

good luck.

now you have told the world how much you intend to bring over,THE WIFE WILL KNOW, THE WIFES MA/PA,MA/PA'S FAMILY WILL ALSO KNOW. that might leave enough for a new BUFFALO.

[Swiss1960]

now you have told the world how much you intend to bring over,THE WIFE WILL KNOW, THE WIFES MA/PA,MA/PA'S FAMILY WILL ALSO KNOW. that might leave enough for a new BUFFALO.

Actually sad to see how your (assumed) bad experience makes you write and rant...

My wife knows about all my finances and never raised any question about higher support for the rest of the family...

Sent from my HTC 10 using Thaivisa Connect mobile app

[meatboy]

2 hours ago, Swiss1960 said:

 

Actually sad to see how your (assumed) bad experience makes you write and rant...

My wife knows about all my finances and never raised any question about higher support for the rest of the family...

Sent from my HTC 10 using Thaivisa Connect mobile app
 

 

GOOD LUCK.

[fletchsmile]

Answers:

 

1. Yes

2. Best account is a very relative term. Depends on what you are looking for Look at what Krungrsi, KBank, Bangkok Bank and SCB offer for starters. Also look into their Premium banking offerings

3. I would say receive it in THB. The best CHF/THB rates are onshore in Thailand. So whatever you do send in CHF. Whether you receive in CHF and convert later or receive in THB is your call and view on exchange rates. BUT bear in mind CHF deposits are not covered by the deposit protection action (DPA), while THB are. In my view that very remote risk isn't worth holding such a large amount in foreign currency. THB is safer

4. Best to contact your Thai bank and say you have a large amount coming can you have a preferential rate. You should get a few points better rate than the standard TT/SWIFT rate

5. Yes you can. Interest rates will be poor. Fees on the account will be unfavourable. Again CHF is not covered by the Thai DPA, so in the remote case the bank goes bankrupt you lose all your money

6. If it is money from capital and you can prove that then it's not taxable in Thailand. 

7. Yes most banks will offer online

8. Yes. May vary with different banks though

 

Talk to the main banks about Priority/ Premier banking and get a feel for which one suits you. You shouldn't be a mass retail client with that amount

 

Sorry, but what_the_**** are you doing sending THB 170,000 a month to your father-in-law? Unless you have a really good reason for that I'd say all the other answers might well be irrelevant and you'd better off keeping your money outside Thailand :)

 

Cheers

Fletch :)

 

Edited January 24, 2017 by fletchsmile