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BANGKOK 25 March 2019 17:05
MikeN

Extra deposits on a fixed deposit account ?

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I have been thinking about putting my 800,000 visa money into a fixed deposit account, and while researching that on a couple of bank websites they mention extra deposits. Back home, a fixed deposit account is just that ....a fixed amount for a fixed time, although you can usually get your money out early if you don’t mind losing the interest accrued.

So how does it work here, if I put the 800k into a 12 month fixed deposit and then find myself some spare cash 3 months later and put that in as well, does that new money become another separate deposit for 12 months but with the same account number and passbook ? Or is it added into the original 800k and all rolled over together when the 12 month term is up ? Or what ?

Edited by MikeN
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Over the years, I have had fixed-term deposits at three different Thai banks.  All have had the same structure; you can walk in any day, deposit some money, and that starts a new term deposit with the same time limit as the others in that account.  It does not affect the maturity date of any other deposit(s) in that account. Same bank book, same account number.

If, for example, you already have a 6 month account, and decide that you also need a 3 month account, you will be given a second bankbook with a different account number.

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1 hour ago, allane said:

If, for example, you already have a 6 month account, and decide that you also need a 3 month account, you will be given a second bankbook with a different account number.

With CIMB I have just one TD passbook but all different deposits are listed in it, with different maturity dates and interest rates. I seem to remember that TMB did it that way also.

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Interesting question : As  400,000 B part of the 800,000 B deposit can not be used during the year, can the 400,00 B be in a separate account that you can not use before the end of the term deposit.?

 

Immigration state that the deposit  must be available in one rule , and then the add a new rules that 400,000 B can not be used otherwise invalidating  the extension. ???

Edited by cnx355
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Jomtien Immigration does accept multiple accounts for the deposit. Some other offices may have their own rules.

 

There is a big difference between something being available to be used, and it actually being used. My 800k deposit is always available to me but I havent touched it for years.

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When I was doing Bangkok Bank fixed deposit accounts several years ago I never added after opening a fixed account.  When a fixed account matured I would go in and pick a new one to roll all the money into.  Like say a 7 month 2% fixed matured and a 12 month 2.5% was the best fixed at the time I would just roll all the money into that 12 month 2.5%. 

 

But Bangkok always closed the old account and opened a new account for the new fixed account (i.e., new account number...old fixed account passbook stamped closed)....I never got to keep the old account number. 

 

Now maybe that was because the type of fixed accounts I was in were promotional accounts paying higher than normal interest for the same term....like say instead of a 6 month term paying 1.5% if you opened by date XYZ when the promotion ended they gave the 6 month term at 2%.   

 

Just best to read the fine print of every fixed account as I'm sure they vary from bank to bank....and promotional rates may have more fine print.

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   Two years ago immigration were not happy because the date on the letter from my bank was different to that in my fixed rate account.

   I went back to my bank, depoited 100 baht in the account, got a new letter with the same date then back to immigration, everything OK!

 

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18 hours ago, KittenKong said:

With CIMB I have just one TD passbook but all different deposits are listed in it, with different maturity dates and interest rates. I seem to remember that TMB did it that way also.

Same with SCB

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18 minutes ago, Aforek said:

Same with SCB

Bangkok Bank will issue a new book if the interest rate on the new money is different.

You will have a new account number. Brilliant.

Another account to report on FBAR form.

 

If the interest is the same, the new deposit will not be mixed with the previous , it will has it's own maturity date, shown in the same book.

Edited by Thailand J
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16 minutes ago, Thailand J said:

Bangkok Bank will issue a new book if the interest rate on the new money is different.

You will have a new account number. Brilliant.

Another account to report on FBAR form.

 

If the interest is the same, the new deposit will not be mixed with the previous , it will has it's own maturity date, shown in the same book.

But if the interest drops just because a higher promotional rate rate expired (i.e., account matured), the interest rate the account "automatically" rolled over to (surely a lower, non-promotional, regular interest rate) will show.  That has happened to me before when I was tardy in getting going to my Bangkok Bank branch bank to pick a new promotional fixed account to roll my money into.

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Why would you consider a fixed term deposit? here a some reasons to reconsider this option:

1. The interest is automatically taxed at 15%

2. You need to submit a tax return to get the tax refunded. Usually 100% as it is your normally the only income in Thailand for most farangs.

3. TMB have a No-Fixed account, which offers the same interest rate as their FD a/c's, and no tax deducted from the interest.

4. TMB do not issue a debit card for this account, even though the funds are at call. I use an everyday savings account with TMB & the No-Fixed account. When I need to withdraw funds from the No Fixed account I do an online transfer to the everyday savings account and then withdraw from that account at an ATM using my debit card. Any funds being budgeted for annual expenses are transferred to the Non Fixed account so they can also earn some interest. The everyday account has NO interest, and the debit card is also fee free.

5. Using the 2 accounts in #4, if I have 5 or more transactions per month in the everyday savings account I get an extra 0.3% interest for the following month on the Non Fixed account.

6. Again using the 2 accounts in #4, it is not necessary, as it would be with a fixed term account, to obtain a statement from your bank each December showing how much interest was paid and how much tax was deducted, so you could then go to your local Revenue Office between Jan - Mar to lodge a tax return and receive the tax deducted back.

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23 hours ago, MikeN said:

So how does it work here, if I put the 800k into a 12 month fixed deposit and then find myself some spare cash 3 months later and put that in as well, does that new money become another separate deposit for 12 months but with the same account number and passbook ?

Yes, each deposit works as a special agreement for the fixed term; i.e. if you deposit 800k baht today, the term is 19th februar 2020 where your interest will de added. If you also deposit some fund for example March 1st, then that fixed period will terminate March 1st 2020.

 

Concerning the 800k baht deposit in a fixed account, the easy way is to keep that balance clean – i.e. keeping 800k baht only and withdraw the annual interest – and keep all other savings in separate account(s).

 

I've been using that method for many years, and it works very well, and the immigration officers are happy, as they don't need to calculate anything; and I'm happy, because I don't need to worry about my deposit.

 

At the moment you can get 1.5% p.a. (or more) that after withholding tax ends up with 1.275% p.a. or 10,200 baht interest of 800k baht 12-month fixed deposit.

🙂

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2 hours ago, Thailand J said:

Bangkok Bank will issue a new book if the interest rate on the new money is different.

You will have a new account number. Brilliant.

Another account to report on FBAR form.

Only if you use promotion accounts with special rate.

 

A normal fixed deposit of for example 12-month term remains in the same bank book, but for each term period the interest rate might change over time. Same with SCB, K-Bank and Government Savings Bank (I talk from many years experience)...🙂

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1 hour ago, TigerandDog said:

Why would you consider a fixed term deposit? here a some reasons to reconsider this option:

1. The interest is automatically taxed at 15%

2. You need to submit a tax return to get the tax refunded. Usually 100% as it is your normally the only income in Thailand for most farangs.

3. TMB have a No-Fixed account, which offers the same interest rate as their FD a/c's, and no tax deducted from the interest.

4. TMB do not issue a debit card for this account, even though the funds are at call. I use an everyday savings account with TMB & the No-Fixed account. When I need to withdraw funds from the No Fixed account I do an online transfer to the everyday savings account and then withdraw from that account at an ATM using my debit card. Any funds being budgeted for annual expenses are transferred to the Non Fixed account so they can also earn some interest. The everyday account has NO interest, and the debit card is also fee free.

5. Using the 2 accounts in #4, if I have 5 or more transactions per month in the everyday savings account I get an extra 0.3% interest for the following month on the Non Fixed account.

6. Again using the 2 accounts in #4, it is not necessary, as it would be with a fixed term account, to obtain a statement from your bank each December showing how much interest was paid and how much tax was deducted, so you could then go to your local Revenue Office between Jan - Mar to lodge a tax return and receive the tax deducted back.

200 words, yet no mention of interest rate.  TMB is never near the top.  The higher rates more than make up for the withholding, which is easily refundable, and how to get it has been beaten to death on TVF.

 

Krungsri offers the same account at 1.3%, which is likely higher than TMB, but some of us nearly doubled that with CIMB.

Edited by moontang

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