Chiang Mai - 800,00 baht deposit - best interest rates

[davehowden]

I am looking for suggestions from recent personal experience as to which Bank branch in Chiang Mai would be good/best for opening a Fixed Rate deposit account for my 800,000 baht annual extension money.

 

I say Chiang Mai and bank branch because everywhere seems to have  their own different rules.

 

I am looking for a 3 or 4 year term/ tenure.

 

I have a Yellow Book, a category "O" visa, am legally married to a Thai lady, have a Thai driving license, and a certified inside leg measurement of 31 inches (555) etc. etc.

 

Thanks

Edited August 12, 2017 by davehowden

[meatboy]

if your intensions are.to leave it in a fixed term,i have been doing this the past 8yrs.rates are pretty low right now,i just fixed mine for 

3yrs.@ 2% interest paid monthly into my current acc.which also attracts interest around 0.6%.

my bank is LHB.LAND & HOUSE.

TAX IS DEDUCTED @ 15% which can be reclaimed every yr. in january.

[connda]

Given the artificially low interest rates and financial risk associated with banks being highly over-extended in the debt market, i.e., extending credit to any Thai with a pulse, you may want to consider keeping those funds a little more liquid than tying them up for an extended period of time just to get 2% instead of 1%.  All the central banks are printing money that are inflating debt bubbles and market buying insanity.  The party has gone on too long, and the longer it goes, the bigger the sucking sound will be when the banks run into problems.  The next time the banks go bust due to their own malfeasance, they will impose bail-ins from depositors.  I'd stick with the banks with the strongest balance sheets and stay away for the non-descript banks offering higher rates.  Remember, there is a reason they are offering higher rates - it has to do with risk.  

Edited August 13, 2017 by connda

[skatewash]

This suggestion will not get you the highest interest rate, but I offer it for your consideration nonetheless as it does have some compensating benefits:

 

Krungsri's Mee Tae Dai Savings account is currently paying 1.3%.  This is classed as a regular savings account, but it does come with the restriction that you can make only two fee-free withdrawals from the account per month (after which you will be assessed a 50 Baht fee per withdrawal).  The rate is variable and can go up and down.  For instance, it was around 2.0% a few years ago.  You earn interest calculated daily, paid monthly, and therefore you never lose any interest due on money that is withdrawn from the account, unlike fixed term deposits.

For me, this is a good account that I use to fulfill my 800,000 Baht Retirement Extension requirement.  I like two aspects of this account in particular.  

 

First, since it is classed as a regular savings account (versus a fixed term deposit account) there is no withholding of interest (at 15%) required until your interest earned in any tax year exceeds 20,000 Baht.  So, no futzing about with reclaiming tax withheld.

 

Second, I never have to worry about fixed term deposits maturing.  I never have to deal with going to the bank and moving the money from one fixed term deposit to the next fixed term deposit.  I never have to deal with possibly unpleasant consequences of having a fixed term deposit account mature during my three-month seasoning period.  Bangkok bank used to automatically continue a fixed term deposit account maturing from a higher promotional interest rate into their standard three-month fixed term deposit at a lower interest rate.  If you wanted to switch to another higher promotional interest rate it resulted in a new account being created with could complicate your life with regard to the immigration office if it happened during your three-month seasoning period.  So, no futzing about with terms.

Because my interest earned within the tax year is below the 20,000 Baht threshold every year I do not need to file a tax return with the Thai Revenue Office to reclaim any interest withheld, because none is ever withheld to begin with.  I have in the past acquired a Thai Tax ID and have reclaimed my withheld interest so I'm not claiming it is rocket science to do so.  However, I am able to discern the difference between having to do something and not having to do something and generally, I prefer the not having to do something course.

[Lucky mike]

555

[henry15]

Besides the  fact that fixed accounys are no longer accepted, I would advice open  an fixed account at the GSB government bank. They have several promotion  were you don't have tp pay the 15% government tax, I just opened a 10 month  fixed account with 1.25 % intrest.

[skatewash]

15 minutes ago, henry15 said:

Besides the  fact that fixed accounys are no longer accepted, I would advice open  an fixed account at the GSB government bank. They have several promotion  were you don't have tp pay the 15% government tax, I just opened a 10 month  fixed account with 1.25 % intrest.

At which immigration office are fixed term deposit accounts no longer accepted?

Krungsri's Mee Tae Dai account currently pays 1.3% interest, no term, and no 15% interest withholding.  Also, not a promotion, but standard product at Krungsri.  That is, not intended to be discontinued at some point when the promotion ends.

[bazza73]

Banks worldwide are screwing their depositors, not just here. If a bank can offer investors 1-2% and lend it out at 5-7% or more, it will do it.

The best option ( if possible ) is to go via the income route of 65,000 baht/month, and invest the 800,000 elsewhere.

[Antonymous]

There was another very long thread on this same topic a few years ago and for the first few score pages people were recommending this or that bank all at low interest and tiny differences between them. Then some bright spark came on and recommended Islamic Bank which were offering almost double the going rates at the others. I opened a long term account there at 3.x% at the time and renewed it when that term expired at 2.6% which is what I have now until next year some time.

 

The fixed term interest at IB is paid monthly into your savings account.

 

An added bonus is that the staff at the CM Airport Plaza branch are super sweet and very helpful.

 

I recommend them to you and suggest you go for the longest term possible - unless you are expecting interest rates to rise.

 

Chiang Mai Immigration do accept fixed term deposits, as far as I know.

 

 

[meatboy]

19 hours ago, connda said:

Given the artificially low interest rates and financial risk associated with banks being highly over-extended in the debt market, i.e., extending credit to any Thai with a pulse, you may want to consider keeping those funds a little more liquid than tying them up for an extended period of time just to get 2% instead of 1%.  All the central banks are printing money that are inflating debt bubbles and market buying insanity.  The party has gone on too long, and the longer it goes, the bigger the sucking sound will be when the banks run into problems.  The next time the banks go bust due to their own malfeasance, they will impose bail-ins from depositors.  I'd stick with the banks with the strongest balance sheets and stay away for the non-descript banks offering higher rates.  Remember, there is a reason they are offering higher rates - it has to do with risk.  

stick with the banks with the strongest balance sheets. so WHO MIGHT THEY BE.

[meatboy]

17 hours ago, henry15 said:

Besides the  fact that fixed accounys are no longer accepted, I would advice open  an fixed account at the GSB government bank. They have several promotion  were you don't have tp pay the 15% government tax, I just opened a 10 month  fixed account with 1.25 % intrest.

my retirement 800,000bht.has been in a continuous FIXED ACCOUNT for over 8yrs.and still is,

so what immigration DONT EXCEPT fixed accs.

[meatboy]

17 hours ago, henry15 said:

 .

 

7 minutes ago, meatboy said:

stick with the banks with the strongest balance sheets. so WHO MIGHT THEY BE.

if i remember right it was 2 of the smaller banks that OUTSHONE all the big boys.

KTN.BANK.

LH.BANK.