Went down to my local bank today, Kasikorn, and opened a fixed-deposit account (aka time-deposit account).
The only documentation they needed was to take a photocopy of my passport, some banks stipulate work permit and valid 1 year visa.
Deposit periods are optional at 3, 6, 9, or 12 months, interest rates range from 3% upto 4.7% (Bangkok Bank are offering 5.1%). If you have an emergency you can take the money out earlier, but would lose some/all of the interest earned.
Thing that surprised me was that you only needed to put in 1,000 Baht to open the account, thought it would have been more.
For example the 12 month fixed account I just opened, gives you 4% pa for any monies upto 1 mil Baht. Over 1 mil the rate goes up.
Good news for savers,
Burger
Higher Interest Rates at the Banks
To add a little more info on this here are the figures from Kasikorn Bank:
As I suspected bugger all for the regular savings account which is what I have.
As I suspected bugger all for the regular savings account which is what I have.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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simonrogers1975
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Taxes on interest
What is the tax rate that is going to be charged on earned interest. If this is the case at 4.75% then this is much higher than a) I thought it would be and b) most UK banks after they take their share of management fees and taxes.
Any thoughts?
Simon
Any thoughts?
Simon
Many thanks
Simon Rogers
One Life Live it
+44 7739 940 131
Simon Rogers
One Life Live it
+44 7739 940 131
Just been down to Kasikorn to enquire about fixed deposit accounts, just so happens they have a promotion on this month whereby you open fixed deposit account for 8 months and get 5% interest paid into your regular account monthly.
I forgot to ask how much tax foreigners would have to pay on it though, probably end up out of pocket
I forgot to ask how much tax foreigners would have to pay on it though, probably end up out of pocket
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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Guess
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Lomu, I hope tou are being facetious here,
Finance is much more complicated than that. To give that rate of interest they (the retail banks) must be getting a return that is greater. In other words they are investing your money into something that returns a higher interest rate. On a large scale sometimes just 50 basis points is enough.
Maybe they have learnt some clever tricks in Wall Street and the Lombards of the world but more likely if they have mimiicked the stuffy old fashioned retail bank mentality, that extra interest that your spare few baht has earned is is being paid for with the repayments on my truck.
In Western countries consumers always owe on average about 50 times what they have in savings. This means a win win win situation for the High Street Retailers. Lets hope Thailand has not caught up with trhe UK thirty years ago or the next thing that will happen is that they will be forcing credit cards into hands and your mortgage repayment will be 90% or your earnings.
So for all of us who came here for a cheaper life style can say goodbye to it now.
Thailand wants foreigners to invest in Thailand but putting your money in a Thai Bank is not quite what they mean. They are looking for investors in factories, infrastrucure, recreational facilities and shipping. All of these carry risks that the flaky small Thai economy can not risk. If you want to invest in a project like that go north, cross a couple of borders and turn right.
Also to watch for the USD/Baht exchange rate might be a shhrewd idea as well.
Finance is much more complicated than that. To give that rate of interest they (the retail banks) must be getting a return that is greater. In other words they are investing your money into something that returns a higher interest rate. On a large scale sometimes just 50 basis points is enough.
Maybe they have learnt some clever tricks in Wall Street and the Lombards of the world but more likely if they have mimiicked the stuffy old fashioned retail bank mentality, that extra interest that your spare few baht has earned is is being paid for with the repayments on my truck.
In Western countries consumers always owe on average about 50 times what they have in savings. This means a win win win situation for the High Street Retailers. Lets hope Thailand has not caught up with trhe UK thirty years ago or the next thing that will happen is that they will be forcing credit cards into hands and your mortgage repayment will be 90% or your earnings.
So for all of us who came here for a cheaper life style can say goodbye to it now.
Thailand wants foreigners to invest in Thailand but putting your money in a Thai Bank is not quite what they mean. They are looking for investors in factories, infrastrucure, recreational facilities and shipping. All of these carry risks that the flaky small Thai economy can not risk. If you want to invest in a project like that go north, cross a couple of borders and turn right.
Also to watch for the USD/Baht exchange rate might be a shhrewd idea as well.
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No, I wasn't trying to be clever.
Ever heard of MLR? It's effectively what you're talking about, but if you save 100 B, the bank will lend out 70 of it. Of that 70, they will loan out 70% etc etc ad infinitum. This is where interest rates come in to slow an economy down. Less loaning/borrowing.
So, if the money's not there in the first place, there's nought to lend out. The economy dies, which is what happened to Thailand during the crash of 199? and will happen again if they're not careful.
The only point of difference beween you and I is that you're looking at it from the banks' point of view. Wrong. Without saving, they and the economy mean nothing. The banks looking for a higher interest rate than they're ofering is pure nirvana - in this country. In the West, yes, to a point. Over here, they don't give a damn. It's the banks that are crying out for money who need to be slowed down, hence MLR. However, this concept seems to have escaped the Thai economy.
I'm sure you'll appreciate the old addage that if everyone went into their bank on the same day and asked to withdraw all their savings, the bank would collapse. It's money chasing money. Hence interest rates rising to attract saving and deter borrowing - domestic or foreign - because that MLR, or ratio of "money" flying around in the economy to the actual amount is getting out of hand.
So, yes they do need foreign investment. Some money, pure and simple and if they continue to deter that investment, then more fool them. Hence an interest rate rise to attract big foreign investment.
I'm waiting for the excange rate to hit 90 to the pound again!!! That was a throwaway remark, because the world's banks probably won't let that happen again.
So, yes, it is a bit more complicated than "that".
Ever heard of MLR? It's effectively what you're talking about, but if you save 100 B, the bank will lend out 70 of it. Of that 70, they will loan out 70% etc etc ad infinitum. This is where interest rates come in to slow an economy down. Less loaning/borrowing.
So, if the money's not there in the first place, there's nought to lend out. The economy dies, which is what happened to Thailand during the crash of 199? and will happen again if they're not careful.
The only point of difference beween you and I is that you're looking at it from the banks' point of view. Wrong. Without saving, they and the economy mean nothing. The banks looking for a higher interest rate than they're ofering is pure nirvana - in this country. In the West, yes, to a point. Over here, they don't give a damn. It's the banks that are crying out for money who need to be slowed down, hence MLR. However, this concept seems to have escaped the Thai economy.
I'm sure you'll appreciate the old addage that if everyone went into their bank on the same day and asked to withdraw all their savings, the bank would collapse. It's money chasing money. Hence interest rates rising to attract saving and deter borrowing - domestic or foreign - because that MLR, or ratio of "money" flying around in the economy to the actual amount is getting out of hand.
So, yes they do need foreign investment. Some money, pure and simple and if they continue to deter that investment, then more fool them. Hence an interest rate rise to attract big foreign investment.
I'm waiting for the excange rate to hit 90 to the pound again!!! That was a throwaway remark, because the world's banks probably won't let that happen again.
So, yes, it is a bit more complicated than "that".
Either way I was impressed at the fact the foreigners can earn that rate of interest here, it will be nice to get some money every month from the bank.
I also found out that this is not possible with state run banks such as Krung Thai Bank, they have strict policies forbidding foreigners getting any kind of interest.
I also found out that this is not possible with state run banks such as Krung Thai Bank, they have strict policies forbidding foreigners getting any kind of interest.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
High interest rates are great particularly if you have money to invest. You are always taking a chance with the Thai baht being revalued. And I mean down! If the exchange rate that you brought the money into Thailand tumbles 10% or more as it has in the past, you will not be too pleased with your rate of interest earned even if it looks very choice today. The other choice is to open an account in foreign funds with HSBC or other banks and accept the going interest rate.
