Is 800k in a FD account OK for retirement extension?

[ianezy0]

I am with KrungThai bank and I am debating whether or not to place 800k in a fixed deposit (FD) as proof of funds for my retirement extension. The main reason would be to earn a small amount of interest plus the ease of use at the IO as the bank statement would only show the deposit with no withdrawals.

If required, I would have immediate access to the funds but I would lose the bonus interest.

If this was acceptable to the IO then it would not matter what the balance of my day to day account would be. Could someone tell me if this is a viable option.

IO would be Jomtien,

Thanks.

[ianezy0]

Sorry, title should read a FD not TD although I am unsure of the difference ????

 

<EDIT by Crossy - Fixed the topic title>

[ubonjoe]

You can use a fixed deposit account to apply for the extension at Jomtien.

[EricTh]

Yes, I have put my money in FD in Bangkok Bank with no problem in the past.

 

I keep some in savings account for everyday withdrawal. You don't have to lose interest on FD, just open two accounts, one FD and one savings.

 

Bangkok Bank will issue one letter for both FD and savings for Immigration purpose.

 

 

[ianezy0]

1 hour ago, EricTh said:

Yes, I have put my money in FD in Bangkok Bank with no problem in the past.

 

I keep some in savings account for everyday withdrawal. You don't have to lose interest on FD, just open two accounts, one FD and one savings.

 

Bangkok Bank will issue one letter for both FD and savings for Immigration purpose.

 

 

Great thanks

[ianezy0]

2 hours ago, ubonjoe said:

You can use a fixed deposit account to apply for the extension at Jomtien.

Thanks Ubonjoe. 

Edited March 16, 2019 by ianezy0
Spelling

[attrayant]

Do FD accounts gets passbooks?  I didn't think so.  I have a CD with Kasikorn and never got a passbook for it.  Doesn't immigration need to see a passbook/register when yo go for the extension or will a printout/statement from the bank suffice?

 

[edit - I assume FD and CD are essentially the same. My paperwork from Kasikorn says "certificate of fixed deposit".]

Edited March 16, 2019 by attrayant

[ubonjoe]

13 minutes ago, attrayant said:

Do FD accounts gets passbooks? 

Many do have one.

13 minutes ago, attrayant said:

I have a CD with Kasikorn and never got a passbook for it. 

It depends upon the type of FD account you have. Some might not meet the requirement if they do not allow immediate withdrawals.

 

15 minutes ago, attrayant said:

Doesn't immigration need to see a passbook/register when yo go for the extension?

No

The will accept a statement from the bank. Some offices want a statement along with the book.

[attrayant]

Thanks.  So as with many things here, it's one of those things where we won't know if it'll be successful until we try.

[ubonjoe]

8 minutes ago, attrayant said:

Thanks.  So as with many things here, it's one of those things where we won't know if it'll be successful until we try.

It is not difficult to determine whether the account will be accepted or not.

Does it allow immediate withdrawal without any delay? If no then it will not be accepted?

Is there a penalty for early withdrawal? If yes it will not be accepted. Only loss of interest is acceptable.

[xylophone]

26 minutes ago, attrayant said:

Do FD accounts gets passbooks?  I didn't think so.  I have a CD with Kasikorn and never got a passbook for it.  Doesn't immigration need to see a passbook/register when yo go for the extension or will a printout/statement from the bank suffice?

 

[edit - I assume FD and CD are essentially the same. My paperwork from Kasikorn says "certificate of fixed deposit".]

I have used the Fixed Term deposit route with 800k in it and my BBK Bank does issue a "passbook" (name?) with it and I have used that for my annual renewal with no problems.

[attrayant]

6 minutes ago, ubonjoe said:

It is not difficult to determine whether the account will be accepted or not.

Does it allow immediate withdrawal without any delay? If no then it will not be accepted?

Is there a penalty for early withdrawal? If yes it will not be accepted. Only loss of interest is acceptable.

 

Thanks again.  I guess I've got some reading to do to see what my CD allows.  I am already at maturity date, so maybe there will be no penalty.

 

5 minutes ago, xylophone said:

I have used the Fixed Term deposit route with 800k in it and my BBK Bank does issue a "passbook" (name?) with it and I have used that for my annual renewal with no problems.

 

That's interesting.  Maybe I never got a passbook because I didn't ask for it.  I'm referring to the transaction register - what do they call it here... a bank book?

[ubonjoe]

This what bank books or passbooks look like.

[Sheryl]

I have a FD at Kasikorn and was automatically issued a passbook for it.

 

Makes me wonder what your "CD" actually is>? A time or fixed deposit is one where you can access the funds at any time though with loss of interest.

[xylophone]

23 minutes ago, attrayant said:

That's interesting.  Maybe I never got a passbook because I didn't ask for it.  I'm referring to the transaction register - what do they call it here... a bank book?

Whenever I have wanted to deposit funds into a long term deposit they have opened up the account with another account number (under my base account) and issued me a book accordingly so I have a record of it..........

 

Writing this has just prompted me to get my passbook and look at the details for you: It is actually called a "Fixed Account Passbook", and I can fix the account term, but can withdraw at any time and just lose a bit of interest if I do, conversely I can leave the funds in it after the original period and still get some interest.

 

Suits me fine and I like BKK Bank in the main.

[trd]

What's the best interest rate you can get on an FDA account here?

[EricTh]

3 hours ago, attrayant said:

Do FD accounts gets passbooks?  I didn't think so.  I have a CD with Kasikorn and never got a passbook for it.  Doesn't immigration need to see a passbook/register when yo go for the extension or will a printout/statement from the bank suffice?

 

Yes, they do. I am shocked Kasikorn don't issue any bankbooks.

 

Bangkok Bank has bankbooks with different books for different terms.

 

SCB has one  bankbook for different terms.

 

[Kerryd]

Anything that needs to "mature" before you can access it (like a Certificate of Deposit or T-Bills, etc, etc) probably wouldn't be accepted as "proof of income". 

For example, I have numerous "Gain" Investments with Bangkok Bank and can't use any of them, just like I can't use an RRSP (or 401k) account, or mutual funds, as proof of income. I was told that even if those "Gain" investments had matured, they still wouldn't be eligible as they would still be considered "investments".

For simplicity's sake, you can use a Savings Account or a Fixed Term account (or a Chequing account I supposed if you had one).

Fixed Term accounts usually come with just a passbook (bank book) but no ATM card.
Never had a Fixed Term account that didn't come with a passbook.

 

As for rates, Bangkok Bank has a 1 year term that automatically renews and pays 1.5% per annum (year). On 800k that grosses about 12,000 in interest which can be left in the account (rolled over) or deposited in another account.

After taxes, you'd end up with about 10,000 baht - more than enough to pay for your next Extension as well as a Multi Re-entry permit (if wanted) and still have a few grand left over. (Extension - 1,900 baht and Multi Re-Entry permit - 3,800 baht.)

 

I think it was Kasikorn that offered terms of 1-4 years, with the longer terms having higher interest rates. If I recall, the 4 year term was something like 2.15% per annum, which would net you about 5,000 baht more per year than the 1 year term at Bangkok Bank.

I've been using Fixed Term accounts at Bangkok Bank for 8 years now and Immigration (Jomtien) never has a problem with them. No need to show any transactions on the account (they know what a "Fixed Term" account is) so long as the bank book is updated and you have the bank letter (I've always had to provide both).

 

 

[Sheryl]

Yes, they do. I am shocked Kasikorn don't issue any bankbooks.
 
Bangkok Bank has bankbooks with different books for different terms.
 
SCB has one  bankbook for different terms.
 

Kasikorn does issue bankbooks.

I think he has something otherthana fixed term savins account.

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[ianezy0]

4 hours ago, attrayant said:

Do FD accounts gets passbooks?  I didn't think so.  I have a CD with Kasikorn and never got a passbook for it.  Doesn't immigration need to see a passbook/register when yo go for the extension or will a printout/statement from the bank suffice?

 

[edit - I assume FD and CD are essentially the same. My paperwork from Kasikorn says "certificate of fixed deposit".]

Yes I have a passbook for the FD account.

[thailand49]

8 hours ago, ubonjoe said:

You can use a fixed deposit account to apply for the extension at Jomtien.

But " If required "  as he stated and does use the money he wouldn't be able to use the account next year for his new extension?

Seasoning months before and after?

 

[Pedrogaz]

Before the changes, my understanding is that FD accounts were disallowed because one could not get access to the money immediately. This was BS as if you forego your interest you can have your money.

[skatewash]

The Mee Tae Dai savings account at Krungsri Bank offers an almost fixed deposit-like interest rate (currently paying 1.3%) in a regular savings account (with a passbook).  Advantages of this account:  no automatic 15% interest withholding for taxes; consequently, no need to file a Thai Personal Income Tax Return to claim back the interest withheld; interest calculated daily and paid monthly (unlike fixed deposits you won't lose any interest you have earned if you have to make a withdrawal); account doesn't expire so you don't have to roll into anything, it just sits there, no fuss, no muss.

[khunPer]

10 hours ago, ianezy0 said:

I am debating whether or not to place 800k in a fixed deposit (FD) as proof of funds for my retirement extension.

As long as you can withdraw, you can place the funds in a fixed deposit for higher interest. Most banks will let you make withdrawals against loss of interest.

 

I've been using fixed terms – either 12-month, or special high-interest promotion offers ranging from 7 to 15 month – and I never had any questions about that. I've kept the full 800k in the account(s) all year, as they main concern is (or was) the seasoning of the money. I'm using a different normal savings account for daily transaction and foreign transfers, and I'm including that account in my bank statement, and show the bank book, to prove that I have savings income/retirement income to cover my living costs (i.e. not working).

????

 

Edit: Pt. I'm using Bangkok Bank (for a number of years) giving 1.5% p.a. interest (before 15% withholding tax).

Edited March 16, 2019 by khunPer

[Tropposurfer]

Yes it absolutely, positively, without ambiguity, definitely, of-course-a-mundo, for sure, is ????

 

 

 

 

[EricTh]

2 hours ago, skatewash said:

The Mee Tae Dai savings account at Krungsri Bank offers an almost fixed deposit-like interest rate (currently paying 1.3%) in a regular savings account (with a passbook).  Advantages of this account:  no automatic 15% interest withholding for taxes; consequently, no need to file a Thai Personal Income Tax Return to claim back the interest withheld; interest calculated daily and paid monthly (unlike fixed deposits you won't lose any interest you have earned if you have to make a withdrawal); account doesn't expire so you don't have to roll into anything, it just sits there, no fuss, no muss.

The problem is that you can get 1.6% or more if you park your money for 1 year in other banks. 0.3% difference interest of 800k is quite a lot ie. about 2400 baht.

 

Yes, we can claim back the tax.

[skatewash]

16 minutes ago, EricTh said:

The problem is that you can get 1.6% or more if you park your money for 1 year in other banks. 0.3% difference interest of 800k is quite a lot ie. about 2400 baht.

 

Yes, we can claim back the tax.

I don't disagree with your points which are all valid. 

The Mee Tae Dai account was better suited to using the money in the account during the non-seasoning months of the year (3 months prior to application for extension of stay) than a fixed deposit.  Due to the changes in policy this year that advantage is greatly reduced, but we can still use the amount in excess of 400,000 during half the year.

 

The simplicity, convenience, and ease of the MTD account is purchased at the cost of a lower interest rate.

 

Which is a better deal depends on individual circumstances and what factors are more important to a person.  Undoubtedly you can achieve higher interest rates in fixed deposit accounts.

[ianezy0]

12 hours ago, khunPer said:

As long as you can withdraw, you can place the funds in a fixed deposit for higher interest. Most banks will let you make withdrawals against loss of interest.

 

I've been using fixed terms – either 12-month, or special high-interest promotion offers ranging from 7 to 15 month – and I never had any questions about that. I've kept the full 800k in the account(s) all year, as they main concern is (or was) the seasoning of the money. I'm using a different normal savings account for daily transaction and foreign transfers, and I'm including that account in my bank statement, and show the bank book, to prove that I have savings income/retirement income to cover my living costs (i.e. not working).

????

 

Edit: Pt. I'm using Bangkok Bank (for a number of years) giving 1.5% p.a. interest (before 15% withholding tax).

Great info Cheers KuhnPer

[ianezy0]

Thanks to all for the information. It appears that I will be good to go with my FD account.

however, it would appear I have a very low interest rate with Krunthai at 1.1% over 24 month ????

cheers

[DFPhuket]

I'm looking putting 800,000 for my retirement visa in a fixed deposit account at SCB. For a 12 month deposit, the SCB "Fixed Account with Passbook" pays 1.65%, while their "Fixed Account E PASSBOOK" (described as fully electronic with no passbook) pays 1.75% https://www.scb.co.th/en/personal-banking/deposits/e-passbook-deposit-account.html

 

I've always felt like a passbook was rather old school and would choose the E Passbook with slightly higher interest if I didn't have to worry about immigration. As more financial institutions move fully to electronic banking, I'd imagine we'll see more of this. Will the letter from the bank be sufficient? Worth the risk?