You got a good % rate from Bangkok Bank ??? Look again...

[travelerjim]

This past year - we saw the availability of 5% + interest rates for baht savings account
deposits at Bangkok Bank ...and others in Thailand too.

I have friends who soon will be looking at renewing their savings certificates...
the current rates are in the 4.5% - 4.75% range...

But..on reading www.thaivisa.com (http://www.thaivisa.com) today I find the renewal rates will not be the higher rates ..they will go back to the old >75% rate :-(

Has anyone had recent experience with this in renewing their savings certificates at Bangkok Bank?
Or, in getting a new certificate issued at the current rates of 4.5% etc ???

Thanks for your feedback..

Here is the ThaiVisa thread...and replies:

http://www.thaivisa.com/forum/index.php ... pic=105417 (http://www.thaivisa.com/forum/index.php?showtopic=105417) .

Here is what the original poster said and asked:

"Hi, One of my friends on the Khon Kaen Forum has reported that he was asked by the Bangkok Bank what he wanted to do with his maturing 10 month Fixed Deposit account. He advised them "reinvest and continue again".

He was told there is a new banking directive that prohibits "Farangs" (but no doubt applies to all foreigners) applying for new Fixed Deposit accounts. He was told he must open a new Basic Saving Deposit account Interest 0.75% (gross). He went to the his Siam bank and was told they are about to apply the same directive but they differed from Bangkok Bank in as much as as clients are allowed to renew an arrangement but not open a NEW Fixed Deposit Account."

TJ

[travelerjim]

Here is another discussion thread about the NEW government directives..

"New Gov Directives On Fixed Rate Deposits?"
Farang no longer allowed new fixed rate deposit accounts?

from ThaiVisa.com

http://www.thaivisa.com/forum/index.php ... pic=105426 (http://www.thaivisa.com/forum/index.php?showtopic=105426) .

Wed 07 Feb 07, 6:01 p.m.

Originally posted by peteh on KhonKaen.com Forum on 05 February 2007. Re-posted here with Pete's permission. Thanks.

"Was anyone aware of the new Government Directives relating to "Farang's" holding a Fixed deposit Account?

I have just returned from my branch of Bangkok Bank. I had to go there because a 10 month Fixed deposit account matured today and they telephoned last week to ask me to go and move the money to a new account.

On arrival I was asked how much I wanted to put into the new account and told them all of the money in the "old" account. The clerk then proceeded to process a "Bog Standard" 0.75 per cent Savings account.

My wife told him that I wanted a 12 month Fixed Interest account and he responded that "as of today" Bangkok Bank are following a new Government directive that prohibits "Farang" from opening a new account (Fixed Rate Deposit). "Farang" can now ONLY open a standard Savings account.

I was very peeved about this and told him that if that was the case I would withdraw all of my money. He was really pissed about that, but gave me the cash to take away.

I then went to my branch of Siam Bank, where I have both Savings and Fixed Rate accounts. They were only too happy to accept the deposit to my Fixed Rate account, but confirmed that they are "about to" adopt the same directive, although if I wanted to open a new account today I would still be able to do so.

They went on to explain that this does NOT affect existing accounts, it just means that you can no longer open a new FR account.

I was completely taken by surprise by all of this as I try to keep up with any "changes" relating to "Farangs".

Did anyone know about this new "directive"?"

-----more discussion and replies follow.

TJ

Here is another discussion thread about the NEW government directives..

"New Gov Directives On Fixed Rate Deposits?"
Farang no longer allowed new fixed rate deposit accounts?

from ThaiVisa.com

http://www.thaivisa.com/forum/index.php ... pic=105426 (http://www.thaivisa.com/forum/index.php?showtopic=105426) .


It might be wise to open a foreign currency account which can be done at any bank you've mentioned before. You donтАЩt need to worry about exchange rates that much. Interest rate can be even better. Make sure that your interests are free of tax!!

You cannot take out any amount of money legally out of Thailand. Therefore thing twice what you are doing!

I would split the amount on two currency accounts: One for long time, one current, maybe three but not more than 6 month.

Have a Thai savings account with some money you need over a month or two and refill from your currency account only.

If they charge you tax in interests, go to the HSBC bank and open with them an currrency account in Hong Kong or Singapore which are tax free.

Bank accounts can be operated on Internet with more or less any bank. That's easy.

In Thailand make sure and check your accounts frequently. Sometimes amounts do disappear surprisingly and it takes a long battle claiming it back.

... a lot of these countries now have to declare to relevant governments what tax has been paid.

I will give you an example, with regard to UK tax, and that is only who I can comment on, but I suspect it could apply to a lot of countries and certainly the EU. If one puts their money in Guernsey, the Guernsey banks now ask for NI details of account holders and deduct a certain amount of tax, whereas at one time interest on savings account was paid free from deduction of tax and it was up to the individual concerned to declare this on their tax form. This was a new EU directive which came into force around July 2005. I remember a few years ago when these discussions were taking place, the UK government basically demanded that these offshore countries, like the Bahamas etc, and even Switzerland (who were one of the last countries to agree), said they would conform in some way or other.

In other words, the UK government want to know who has savings in "these" countries. If these countries did not conform to these new rules, then the UK government would "do something", I forgot what they would actually do, but it was basically that they would not do banking business with that country - don't quote me on that, but it was something on those lines.

There were quite a few countries involved in this directive coming from the UK government because people were hoarding money away in offshore banks and paying no tax etc etc. Now those banks have to deduct tax and let the UK authorities know. Not all countries complied, some countries lay down their rules, I believe (but don't quote me on that either), I'm not too sure what Singapore did, but you can bet your bottom dollar that basically there are not many safe havens to put money and get it tax-free and relevant countries informed, although as I say this was a EU directive which applied to the UK, and I suspect EU countries. The US is another story - they are a rule to themselves with regard, in that they are strict, so I suspect they have "something" in place. One should declare everything - big brother is out there now.

[Brad the Impala]

...
In other words, the UK government want to know who has savings in "these" countries. If these countries did not conform to these new rules, then the UK government would "do something", I forgot what they would actually do, but it was basically that they would not do banking business with that country - don't quote me on that, but it was something on those lines.


Trust me, I don't think that you need to concern yourself with being quoted.

.. the point behind that statement was that the majority, if not all, offshore countries have to conform with the new legislation - if not, at least in that there is a certain amount of cred of where one is putting their money, if you put in a country that don't comply to international law and directives, then what type of country are you putting your money in -- if I didn't put that statement in, then guaranteed there would be someone asking obvious questions of why, where and how.

[ikarus]

I contacted my colleague in HSBC THailand and she confirmed that there are no new
regulations regarding term deposits for nonresidents. In other words, it is still possible to open term deposit for nonresident. After military coup Thailand entered a long period of political instability with a lot of troubles ahead, including for expats. But they are not along the lines suggested by TJ. Did not you say that you are going to take a break in your postings. Why cannot you just enjoy your retirement instead of spreading various nonsensical rumors and innuendos?

[travelerjim]

I contacted my colleague in HSBC THailand and she confirmed that there are no new
regulations regarding term deposits for nonresidents. In other words, it is still possible to open term deposit for nonresident. After military coup Thailand entered a long period of political instability with a lot of troubles ahead, including for expats. But they are not along the lines suggested by TJ. Did not you say that you are going to take a break in your postings. Why cannot you just enjoy your retirement instead of spreading various nonsensical rumors and innuendos?

Ik...

Read the http://www.thaivisa.com links I referenced...
to the discussion about the renewal of certificates of savings deposits...
and you will see this is NO rumor or innuendo. It is happening!

Also note that it has been suggested to "shop around" with other banks to get their terms...
as it appears not all banks have tightened up as quickly as Bangkok Bank.

If you do not care to read my postings - I strongly suggest you put me on "ignore" ...
your life may be easier that way :-)

Up to You!

TJ

[ikarus]

I carefully read your posts and followed the links you provided. What I found out from those links is that one jerk had a bizzare incident in one of the branches of Bangkok bank and another poster generally refred to alleged tightening of rules for opening accounts in Thai banks by nonresidents. That is it. Since you specifically refered to alleged " new directive"
for opening term deposits by nonresidents, I provided a precise answer to this question:
such directive does not exist and there is no change in the rules regarding opening term deposits in Thailand by nonresidents.
What you did in this particular case is nothing else as an attemt to spread a nonsensical, unsubstantiated rumor and create a panic. There are plenty of other examples just on this message board when you are doing exactly the same thing. Should I continue with further examples? Since you pretend to be a responsible person crusading on various occasions this
pattern of posting does not add you any credibilty.