Beware of Krung Thai Bank

[JoegaToe]

I had some cash on deposit at Krung Thai Bank ('KTB') in a regular savings account.  As I don't need it for a few months I decided to place it on a fixed deposit for six months and obtain a better rate of interest.  We checked the rate offered by the various banks.  I could obtain 1.25% for a fixed deposit at Bangkok Bank ('BBL') whereas KTB was offering 1.15% for an equivalent fixed deposit.  For the sake of convenience, I decided to leave it with KTB and open a six-month fixed deposit with them at the rate of 1.15%.  We discussed rates during the account opening process and agreed it would be 1.15%.  After the account was opened I returned to the office.  My eagle-eyed PA noticed that the bank had fixed the rate at 1%.  When she made inquires on my behalf the bank informed her that as I am a foreigner I am only entitled to the same rate as they pay for corporate entities, which is 1%, a full one-fifth less than I can obtain from BBL.

 

Needless to say, tomorrow I shall withdraw the cash and deposit it with BBL.  Such flagrant discrimination based on nationality is unacceptable, made even more unpalatable by the fact that the rate was openly discussed during the account opening process and they purposefully misled me into believing that they would pay 1.15%.

[observer90210]

Good to know, thanks for sharing and to make sure other farangs don't get ripped off in such discrimination.

[colinneil]

OP somebody is pulling your chain.

I have a 6 month fixed term account at Krung Thai, and i am getting 1.15%.

 

[JAS21]

You should try CIMB ... somewhat better ....

[JoegaToe]

58 minutes ago, colinneil said:

OP somebody is pulling your chain.

I have a 6 month fixed term account at Krung Thai, and i am getting 1.15%.

 

Good to know, thanks.  I have instructed my PA to file a complaint at https://www.1213.or.th/en/aboutfcc/complainthandling/Pages/complain-condition.aspx

 

[lovelomsak]

Krung thai is terrible. 

 I have had an account for over 10 years that I keep a constant 1,500,000 baht in. I have not received one baht in interest since I opened the account. 1% to me would be an improvement.

[JoegaToe]

36 minutes ago, lovelomsak said:

Krung thai is terrible. 

 I have had an account for over 10 years that I keep a constant 1,500,000 baht in. I have not received one baht in interest since I opened the account. 1% to me would be an improvement.

Presumably in support of a credit card for which the bank requires a fixed deposit over which they hold a lien by way of security?

 

For the sake of clarity, my cash need not stay at KTB and it is not a security deposit and it, along with other cash deposits held at that bank over which I have control, will be moving imminently.  And they will be reported to the Bank of Thailand.

[lovelomsak]

26 minutes ago, JoegaToe said:

Presumably in support of a credit card for which the bank requires a fixed deposit over which they hold a lien by way of security?

 

For the sake of clarity, my cash need not stay at KTB and it is not a security deposit and it, along with other cash deposits held at that bank over which I have control, will be moving imminently.  And they will be reported to the Bank of Thailand.

Are you trying to put words in my mouth. It is not there for credit card. I do not have a Thai credit card thank you. It is simply money in an account. It just sits there and rots so I can show immigration I have over 800,000 in an account. every year.

[CharlieH]

 Correct me if I wrong but it seems you have nearly double what is required for your visa sat there doing nothing for 10 years, I cant understand why you would want do that. But hey, its your money, your choice. 

[lovelomsak]

50 minutes ago, CharlieH said:

 Correct me if I wrong but it seems you have nearly double what is required for your visa sat there doing nothing for 10 years, I cant understand why you would want do that. But hey, its your money, your choice. 

You are right it is just about double what I need for extension of visa. Old habits is all I can attribute this too. I always like extra money easy to get in case I need it or want it. It is not about being rational. In Canada I used to keep $20,000 canadian in my checking account so when ever I wanted to buy something I could just write the check. I really like real cash easy to access. always have.

  Also could care less about the interest here because it is my understanding I would have  file tax and claim the interest and pay tax on it.

[JoegaToe]

1 hour ago, lovelomsak said:

Are you trying to put words in my mouth. It is not there for credit card. I do not have a Thai credit card thank you. It is simply money in an account. It just sits there and rots so I can show immigration I have over 800,000 in an account. every year.

Far be it for me to want to put words in your mouth.  Just trying to understand your rationale.  It's not necessarily irrational to want to forgo interest in exchange for immediate access to your cash, if it were a binary choice and those were the options.  That said, as I understand it you could obtain 0.375% interest pa, at current rates, by placing your money on a savings account which is accessible on demand.  Incidentally, based on my understanding of the tax law, tax on interest is deducted at source and your are not required to file a tax return unless you choose to.

 

In my case, I'll take the 1.25% instead of the 1% offered by KTB and content myself with that.

[KittenKong]

1 hour ago, lovelomsak said:

You are right it is just about double what I need for extension of visa. Old habits is all I can attribute this too. I always like extra money easy to get in case I need it or want it. It is not about being rational. In Canada I used to keep $20,000 canadian in my checking account so when ever I wanted to buy something I could just write the check. I really like real cash easy to access. always have.

  Also could care less about the interest here because it is my understanding I would have  file tax and claim the interest and pay tax on it.

 

I have my retirement extension deposit (801,000B) in an interest bearing account that pays around 1.7% and this is entirely acceptable to Jomtien immigration. You might like to check with your local immigration but in principle it should be acceptable to them also.

I also have various TDs and instant-access savings accounts for spending money for the year. All pay interest.

 

[topt]

2 hours ago, lovelomsak said:

Also could care less about the interest here because it is my understanding I would have  file tax and claim the interest and pay tax on it.

Presume you are talking the Thai tax man and not the IRS? If so your understanding is flawed. You get the interest and depending on the account they may take off some tax but up to you if you want to make the effort to reclaim it.

[meatboy]

14 hours ago, lovelomsak said:

Are you trying to put words in my mouth. It is not there for credit card. I do not have a Thai credit card thank you. It is simply money in an account. It just sits there and rots so I can show immigration I have over 800,000 in an account. every year.

are you telling porkies,i have had my retirement sum,[1,000,000] with LH. BANK for over 6yrs.fixed at rates ranging from 3.99%-2%today

fixed till 2020.

with a nice tidy sum of interest paid monthly into a current acc.about 160,000bht.and all the witheld yax back aswell.

[MrPatrickThai]

On 7/26/2017 at 5:39 PM, lovelomsak said:

Krung thai is terrible. 

 I have had an account for over 10 years that I keep a constant 1,500,000 baht in. I have not received one baht in interest since I opened the account. 1% to me would be an improvement.

All you have to do is show them that you are a resident. You've wasted a considerable amount of cash!

[MrPatrickThai]

I have a mortgage with KTB, as I have worked here for a long time. I find them very good.

[JoegaToe]

Just to complete the story.  I did contact the BOT and they contacted both the offending bank and me.  The bank was very apologetic and acknowledged that they were in the wrong.  I moved the money to Bangkok Bank along with other monies over which I have control that was formerly at Krung Thai Bank.  It transpires that there is a different interest rate for residents verses non-residents.  As it happens I am a resident and they applied the incorrect rate.  More to the point, they misled me into believing that I would be given the higher rate and they were only found out as a result of the eagle eyes of my PA.

 

BOT did take up the matter although no one told me that the bank staff concerned has been admonished.  Being Thailand I expect that the staff member concerned wasn't formally disciplined, although she might have been, I don't know.  Nothing much will improve here unless there is seen to be a consequence for negligence, which, when it is a case of foreigners and Thais the presumption tends to be that the foreigner must be wrong.  TIT!

 

Case closed.