Query re Bangkok Bank interest on fixed accounts

[AbeSurd]

What happens to your interest if you make a partial withdrawal of your money from a fixed account after the initial ‘promotion’ period, during one of those rolling 3-monthly periods at the bank’s standard rate of interest for fixed accounts?

Bangkok Bank have told me that if I make a withdrawal during a 3-month period I will get the standard rate of interest on the balance that remains in the account on the due date. As I understand it, this is what they mean....

 

Example: Bangkok Bank's current standard rate for fixed accounts is, say, 1% per annum. On Feb 23rd 2017, immediately after the interest payment on the previous 3-monthly period, I have 100,000 baht in my account. On March 1st 2017 I withdraw 25,000 baht, leaving 75,000 baht in my account. Result: on the due date of May 22nd 2017 I will get 1% per annum just on 75,000 baht. For the entire 3-month period I lose any interest that might otherwise have been due on the 25,000 I withdrew.

 

Have I got this correct? Thanks.

[AbeSurd]

This is what the passbook looks like:

 

 

[allane]

Common sense. You receive interest only on the portion that has been on deposit for the full term. On any portion that has been on deposit for less than the full term, you receive no interest.

[Pib]

When you withdraw funds from a fixed account before the deposit maturity date you will lose all or part of the interest.  It can vary depending on the fixed rate product you have.  The below two Bangkok Bank weblinks regarding fixed accounts should be helpful.

 

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/FixedDeposits/Pages/Default.aspx

 

http://www.bangkokbank.com/BangkokBankThai/Documents/Site Documents/Other/Condition_SavingFixed.pdf

 

[AbeSurd]

50 minutes ago, Pib said:

When you withdraw funds from a fixed account before the deposit maturity date you will lose all or part of the interest.  It can vary depending on the fixed rate product you have.  The below two Bangkok Bank weblinks regarding fixed accounts should be helpful.

 

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/FixedDeposits/Pages/Default.aspx

 

http://www.bangkokbank.com/BangkokBankThai/Documents/Site Documents/Other/Condition_SavingFixed.pdf

 

Thanks.

 

Unfortunately I'm not a lot wiser as neither of those links seems to explain what happens in the case of a partial withdrawal of the money.

 

And this remark - which seems to refer to a full withdrawal of the money - seems to apply to the initial 3 months of the account, not the rolling 3-months scenario I'm talking about: "If you withdraw your money prior to three months, you will get no interest on your deposit. If you withdraw it after that period, and before it matures, you will get the same interest rate as a savings account."

 

Also both links refer to 'Fixed deposit accounts' whereas mine is a 'Fixed account'. Maybe they're the same thing, I don't know.

[AbeSurd]

3 hours ago, allane said:

Common sense. You receive interest only on the portion that has been on deposit for the full term. On any portion that has been on deposit for less than the full term, you receive no interest.

I think you're saying that in the example I gave, I'm correct?

 

I'm a Brit. I'm told these kind of rolling 3-months accounts may be familiar to Americans. In Britain I've never come across them, so I've no idea how they work.

[allane]

I have one of these accounts, though I've only had it a few months, and have not withdrawn any deposit before the maturity date.

With another Thai bank, I  once made an early withdrawal, and received no interest on the withdrawn portion. Yes, I think your initial understanding is correct.  If you do decide to make an early withdrawal, come back here and tell us what happened.

[AbeSurd]

51 minutes ago, allane said:

I have one of these accounts, though I've only had it a few months, and have not withdrawn any deposit before the maturity date.

With another Thai bank, I  once made an early withdrawal, and received no interest on the withdrawn portion. Yes, I think your initial understanding is correct.  If you do decide to make an early withdrawal, come back here and tell us what happened.

 

I've just done a partial withdrawal. Won't know the consequences until May. Will try and remember to update this thread then.

[Pib]

2 hours ago, AbeSurd said:

Thanks.

 

Unfortunately I'm not a lot wiser as neither of those links seems to explain what happens in the case of a partial withdrawal of the money.

 

And this remark - which seems to refer to a full withdrawal of the money - seems to apply to the initial 3 months of the account, not the rolling 3-months scenario I'm talking about: "If you withdraw your money prior to three months, you will get no interest on your deposit. If you withdraw it after that period, and before it matures, you will get the same interest rate as a savings account."

 

Also both links refer to 'Fixed deposit accounts' whereas mine is a 'Fixed account'. Maybe they're the same thing, I don't know.

I think you will find paragraph 9.2 of the second weblink applicable for a 3 month fixed account.  Do any withdrawal before the 3 month maturity and you get zero interest....that is, you lose all interest earned during that 3 month period.

 

[AbeSurd]

31 minutes ago, Pib said:

I think you will find paragraph 9.2 of the second weblink applicable for a 3 month fixed account.  Do any withdrawal before the 3 month maturity and you get zero interest....that is, you lose all interest earned during that 3 month period.

 

That reads to me like they may be talking about a promotion term/period of "at least 3 months". In my case, the promotion term/period was 11 months, during which I received the annual rate of 2.8%. After the due date of November 22nd 2015 my account defaulted to their usual 3-monthly rolling period thing - at their standard rate which, ever since then, has been a steady 1% per annum.

 

In this thread I'm trying to focus on the 3-monthly rolling period arrangement which follows the initial promotion term/period. When you talk about 'a 3 month fixed account' I'm not sure you're talking about the same thing.

 

Thanks.

[Pib]

No, I think we are talking the same thing.  Once you finished the 11 month fixed term it automatically converted to a 3 month fixed term since you didn't provide the bank any other instructions upon maturity such as going in and selecting a new fixed term promotion.  I've had about a half dozen Bangkok Bank fixed deposit accounts..once they reach maturity they automatically convert to a 3 month fixed term...it even says that in the Passbook when updating the passbook....there will be an entry stating 3 month fixed term and interest rates in affect.  But I've always converted them to a new promotion (whatever the best was at the time) shortly after they matured.

 

So, your account is now operating under  3 month fixed term interest rules.

 

Quote

If you withdraw your money prior to three months, you will get no interest on your deposit. If you withdraw it after that period, and before it matures, you will get the same interest rate as a savings account.

Above tells me during the first 3 month period if you withdraw any money early you will earn no interest.  But if you leave it pass one 3 month period and then withdraw any money you just get the standard savings account interest of around 0.5%.   You just don't want withdraw money from a fixed account of any period of length (i.e., 3 months, 6 months, 11 months, etc) as you will lose all interest and/or most of the interest.

Edited February 25, 2017 by Pib

[allane]

To the OP: I went in yesterday, and learned something new about these accounts. I tried to send you a Private Mail, but it has been rejected for some technical reason (maybe excessive length ?). Can you send me a Private Mail, to which I will then reply ? And, if you can, send me an E-mail address, or other method of contact, in case I have technical problems again.

[AbeSurd]

I said I'd try and remember to update this thread once the latest 3-monthly rolling period maturity date on my Bangkok Bank fixed account had passed. Well, it's passed...

And the result is ... good news. I did indeed receive interest (at the standard rate for fixed accounts - currently 1 percent) on the amount actually in the account on the maturity date. But no interest on the money I took out during the 3-month period immediately before the maturity date.

Conclusion: with Bangkok Bank fixed accounts, once the regular 'standard rate' 3-monthly rolling periods have started you will always receive standard rate interest, even if you make partial withdrawals during the 3-monthly periods, so long as there is some money in the account on the maturity dates.

I also have a similar fixed account with Siam Commercial. The last few months show it operates in the same way.

Edited June 4, 2017 by AbeSurd
More info.

[Pib]

Here's what the Bangkok Bank governing provisions for fixed accounts says:

 

Based on above and your experience seems it boils down to money withdrawn before maturity--no interest earned/interest loss.  Money still in account at maturity--interest earned.

 

But  beware the basic governing provision may just apply to fixed accounts that are allowed to automatically and continually rollover without any instructions from the account owner.  The special promotional fixed accounts that pay significantly higher interest rate may come with additional restrictions like even closure of the account if withdrawing any funds before maturity.

 

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/FixedDeposits/Pages/Default.aspx

 

Edited June 5, 2017 by Pib

[AbeSurd]

6 hours ago, Pib said:

Based on above and your experience seems it boils down to money withdrawn before maturity--no interest earned/interest loss.  Money still in account at maturity--interest earned.

Yes, although I'm not clear what happens if you pay money into the account part way through a 3-month period and leave it in the account to the maturity date. I suppose the logic would be: the money hasn't been in the account for the full 3 months, so no interest on it.

[allane]

If you deposit money "part way through a 3 month period", you can consider that deposit as Day 0 of a new 3 month period. 

[AbeSurd]

35 minutes ago, allane said:

If you deposit money "part way through a 3 month period", you can consider that deposit as Day 0 of a new 3 month period. 

Yes, that rings a bell. Blimey, what a complicated financial product  Questions, questions!

So if I make a deposit two months into the 3-month rolling period, and the maturity date gets reset in the way you suggest, do I get interest on the money that was already in the account, for the two month period that has just been terminated prematurely?

[allane]

Depositing additional money, at any time, does not reset the maturity date(s) on any funds that are already in the account. Rather, you then have two, or more, maturity dates, one for the original deposit, and one for each additional deposit.

[Pib]

2 minutes ago, allane said:

Depositing additional money, at any time, does not reset the maturity date(s) on any funds that are already in the account. Rather, you then have two, or more, maturity dates, one for the original deposit, and one for each additional deposit.

^^^^What allane said.   This is what I saw in the past when I had fixed accounts.

[AbeSurd]

6 hours ago, allane said:

Depositing additional money, at any time, does not reset the maturity date(s) on any funds that are already in the account. Rather, you then have two, or more, maturity dates, one for the original deposit, and one for each additional deposit.

Oh lawdy. Complication on complication. I feel yet more questions coming on and need to go and have a lie-down