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[Korat88]

Hello Everyone,

 

Every year I hand over a small amount of cash to the Thai grandchildren that is enjoyed on sweets and other entertainment. To cut it short and get to the point I was just wondering whether there is anything like a "junior ISA" option in the UK that is available in Thailand. My inquiries with BKK Bank have led to the usual life insurance options being promoted where a regular monthly investment gets a lump sum in return upon completion of the term, but that isn't really what I am looking for here. The idea would be to start them of young (now 10 and 12 years old) and get them to take an interest in saving for themselves. Perhaps being way to optimistic I know. Any leads would be appreciated. Thank you.

[ubonjoe]

They can have a saving account. Many banks promote them for children.

GSB is one I recall prompting them for children 7 year old and over. https://www.gsb.or.th/products/saving/Savingsfair/standard.aspx

[Korat88]

Thank you for the prompt reply ubonjoe! I see that they have a youth account that pays 1.25% per annum for students here: https://www.gsb.or.th/products/saving/Savingsfair/Youth-Savings.aspx

 

Looks like it is more flexible than the BKK Bank option: http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Accounts/SinmathayaSubthaweeBualuangKids/Pages/default.aspx

[Korat88]

I also found a previous thread that I missed on my earlier search:

 

[fletchsmile]

No. Nothing equivalent to a junior ISA here that has tax breaks. That said unit trust taxation is generally more favourable in Thailand than UK anyway

 

You can buy regular unit trusts/mutual funds in Thailand. May depend on the bank you talk to as to how this is done on behalf of children.

 

For Stan Chart: we bought in the format: "childs name by father's name (me)". They no longer allow this option though for new clients.

 

For TMB: my wife opened 2 additional unit trust accounts in her name. plus a separate bank account for any purchases/sales/divs to go thru So we just know ourselves that these are for the benefit of the kids at some point in the future. Once set up you can buy TMB asset management unit trusts online. If you want to buy unit trusts that are not TMBAM, eg Aberdeen, UOB you can buy thru a brnach but not yet online.

The reasons in my wife's name not mine for this option: inheritance tax, and general convenience. TMB aren't that great at catering to foreigners specifically.

 

Worth remembering also that for gains on unit trusts in Thailand for individuals you don't pay capital gains tax, so that's part of the ISA benefit anyway, even without the tax wrapper

 

[Korat88]

Appreciate the feedback fletchsmile. Since the children are not foreigners the TMB option should be okay ;-) Will have to look into it further.