Thoughts on Foreign Currency Deposits for the 800k baht

[scubascuba3]

These seem to be good and bad.

 

Good

- No need to buy 800k baht when the exchange rate is bad.

- Reports of it being used for Retirement extension.

- Krungsi Interest from 0.1% to 0.6% for GBP.

 

Bad

- Have to deposit GBP500 to open an account. GBP5,000 for time deposit

- Not protected by the Deposit Protection Agency

- Transfers out 0.5% charge

 

I was toying with using one for the Non Imm O and retirement extension, but as the balance isn't protected its put me off.

 

Thoughts on these accounts?

 

Using an Agent seems so much more straight forward and generally costs the same as loss of interest and other charges

 

[scubascuba3]

No thoughts?

[mahjongguy]

Scenario: You have put the equivalent of 800k baht in an FCD account and used it for your extension. Months later, the baht weakens. You want to move a big chunk of your FC into your baht account. But you can't do that without screwing up your accordance with the latest Immigration requirements.

[BobBKK]

Don't do it. Fluctuations in rates?  just do what most of us do - the 800k is a 'sunk cost' and leave it there forever

[buick]

i would recommend going with with a THB account and just accept the lower rate than you might have recvd in years past.  one negative for me is the bangkok bank office at CW won't issue a bank letter for a FCD account, but they will update the bank book.  so i have to go to the main office at silom rd (not too far from me) to get the bank letter (the day before i go to CW) and then go to the bangkok bank office at CW to get the bank book updated (which is done quickly).

 

i made my deposit in USD when it was 36thb to 1usd.  i also have a THB account and now i transfer money from overseas to the THB account to make sure i'm well over 800,000thb btwn the two accts.  if i see the THB at 34 to 1 USD, i will convert to all THB and close the FCD account.

 

for USA citizens, you have to report the FCD account, assuming it is over 10,000USD, each year when you do your taxes.  it is a pretty simple process but some people complain about it.

 

 

Edited June 14, 2019 by buick

[Tanoshi]

37 minutes ago, mahjongguy said:

Months later, the baht weakens. You want to move a big chunk of your FC into your baht account. But you can't do that without screwing up your accordance with the latest Immigration requirements.

Confused by your statement, explain why?

[scubascuba3]

Scenario: You have put the equivalent of 800k baht in an FCD account and used it for your extension. Months later, the baht weakens. You want to move a big chunk of your FC into your baht account. But you can't do that without screwing up your accordance with the latest Immigration requirements.

Why would that screw it up? you can use more than one bank account, you just need to ensure in total its greater than 800k

[billsmart]

4 hours ago, scubascuba3 said:

No thoughts?

My only thought is using an agent is illegal...

[khunPer]

9 hours ago, BobBKK said:

Don't do it. Fluctuations in rates?  just do what most of us do - the 800k is a 'sunk cost' and leave it there forever

–in a long term fixed account giving you about 1.5 percent pro anno, and withdraw the interest (after withdrawal tax deduction) every year; gives you about 10,000 baht in the pocket...????

 

Using an agent is by the way illegal.

Edited June 14, 2019 by khunPer

[sfokevin]

How much of a cushion do you plan to add to the account to protect you from currency value reductions?... Extra 10 or 20%... What if it’s not enough?... You can’t add funds to compensate in the 2 months prior to your extension...

 

 

[DaRoadrunner]

I need to transfer funds from US$ or UK£ to top up for my 800K, plus enough to live on and keep Lady Roadrunner in the manner to which she is accustomed.

 

Considering the strength of the Baht, it makes sense to transfer into Thai FCD accounts and wait for the exchange rate to improve before transferring into Baht.

 

Not protected by the Deposit Protection Agency? Risk is small, pick one of the biggest banks.

 

Can anyone confirm Immigration CW are accepting FCD's? Or is this another one that depends on the whim of the individual IO?

Edited June 14, 2019 by DaRoadrunner

[expat_4_life]

3 minutes ago, DaRoadrunner said:

Can anyone confirm Immigration CW are accepting FCD's? Or is this another one that depends on the whim of the individual IO?

Here is a thread about it from last year, https://forum.thaivisa.com/topic/1023916-retirement-visa-800k-in-foreign-currency/

 

UbonJoe chimes in, and he one of the most knowledgeable voices on visa/immigration matters.

"A foreign currency account will be accepted at most immigration offices."

[DaRoadrunner]

Siam Commercial Bank (SCB... Soi Cowboy Bank). Went there and tried to open an FCD account.

 

They wanted a work permit. How is anyone with a retirement visa supposed to have a work permit? Stupid!

 

They asked where my money came from, saying I must show salary in Thailand. More stupid!

 

I left the bank disgusted, will try a different one. I swear the Thais have not only failed to progress, they have regressed.

[onera1961]

On 6/13/2019 at 10:17 PM, buick said:

or USA citizens, you have to report the FCD account, assuming it is over 10,000USD

I think it is any account (FCD or local currency) in your name must be FBAR reported. 

[onera1961]

2 hours ago, DaRoadrunner said:

I left the bank disgusted, will try a different one. I swear the Thais have not only failed to progress, they have regressed.

But farangs still love to settle here in hordes even if they are not retired. They undergo humiliation, and inconveniences but cant leave this place. I wonder why? If a Laotian/Cambodian/Myanmar person does it understand the lure. I have not stil figured out the lure of this place for farangs.

[onera1961]

On 6/14/2019 at 8:55 AM, expat_4_life said:

"A foreign currency account will be accepted at most immigration offices."

It has been said many times and still people keep asking the same questions. I wonder why?

[onera1961]

On 6/13/2019 at 10:35 PM, Tanoshi said:

Confused by your statement, explain why?

He is dreaming that the Baht is weakening and he will get his past back. 

[DaRoadrunner]

9 minutes ago, onera1961 said:

But farangs still love to settle here in hordes even if they are not retired. They undergo humiliation, and inconveniences but cant leave this place. I wonder why? If a Laotian/Cambodian/Myanmar person does it understand the lure. I have not stil figured out the lure of this place for farangs.

Cuz it's worse where we came from

[UKresonant]

6 hours ago, DaRoadrunner said:

Siam Commercial Bank (SCB... Soi Cowboy Bank). Went there and tried to open an FCD account.

 

They wanted a work permit. How is anyone with a retirement visa supposed to have a work permit? Stupid!

 

They asked where my money came from, saying I must show salary in Thailand. More stupid!

 

I left the bank disgusted, will try a different one. I swear the Thais have not only failed to progress, they have regressed.

Krungsi, would not open a THB if no work permit, but they did not have a problem opening a FCD.

I think the FCD is Ideal for the income method. Easy to SWIFT money in, at £9.60 a transfer plus the banks 1% deposit fee.

(they do say now, that a THB account would be possible, if I bring the wife as a ref/existing customer, I"ve been with them more than a year now).

[onera1961]

On 6/14/2019 at 1:40 AM, billsmart said:

My only thought is using an agent is illegal...

No court has ruled anything on that. I will believe when a court says so. Otherwise, it is all hearsay. I don't trust an legal determination from any members in this site. They only spout the rules. 

[Kron]

Based on current forecasts the Pound is still to fall against the Baht over the next couple of years and may drop below 30Baht/Pound. - http://poundf.co.uk/pound-to-baht-forecast-gbp-to-thb Guess this is based upon overcoming the effects of Brexit and god knows what's going to happen with Boris at the helm!

 

So based on this it may be prudent to buy the 800k Baht now. Also Baht accounts attract slightly higher interest rates.

 

And if you did have a foreign currency deposit you might have to top it up every year to meet the 800k should the Baht/Pound rate fall as predicted.

[scubascuba3]

Based on current forecasts the Pound is still to fall against the Baht over the next couple of years and may drop below 30Baht/Pound. - http://poundf.co.uk/pound-to-baht-forecast-gbp-to-thb Guess this is based upon overcoming the effects of Brexit and god knows what's going to happen with Boris at the helm!
 
So based on this it may be prudent to buy the 800k Baht now. Also Baht accounts attract slightly higher interest rates.
 
And if you did have a foreign currency deposit you might have to top it up every year to meet the 800k should the Baht/Pound rate fall as predicted.

Yes it might fall, it might not, might recover, it all depends on brexit, what we know for sure is it's pretty low currently

[jacko45k]

1 minute ago, scubascuba3 said:

1 hour ago, Kron said:

Based on current forecasts the Pound is still to fall against the Baht over the next couple of years and may drop below 30Baht/Pound. - http://poundf.co.uk/pound-to-baht-forecast-gbp-to-thb Guess this is based upon overcoming the effects of Brexit and god knows what's going to happen with Boris at the helm!
 
So based on this it may be prudent to buy the 800k Baht now. Also Baht accounts attract slightly higher interest rates.
 
And if you did have a foreign currency deposit you might have to top it up every year to meet the 800k should the Baht/Pound rate fall as predicted.

Yes it might fall, it might not, might recover, it all depends on brexit, what we know for sure is it's pretty low currently

Everyone has a different opinion! I have had an expected 15% Sterling recovery when Brexit is settled holding me back for a long time now..... as things got worse! A no deal would likely send it lower. Very fortunately I tucked the 800k away some years ago, but the pressure increases.  

[TheThai]

Will Immigration accept the equivalent of 65k baht being deposited every month into a FCD account for income method?  I can understand the idea of 800k being accepted because the total amount is used and can be based on the baht value day you go to immigration.  will they use the same principle and value each monthly deposit if you do FCD each month.  Since previous months, could have been lower or higher and that monies is now gone.  will they use the most current baht value to calculate the value for previous months?

[ubonjoe]

29 minutes ago, TheThai said:

Will Immigration accept the equivalent of 65k baht being deposited every month into a FCD account for income method?

Yes the would.

29 minutes ago, TheThai said:

Since previous months, could have been lower or higher and that monies is now gone.  will they use the most current baht value to calculate the value for previous months?

The exchange rate on the date you apply would be used to calculate the amount of each each transfer. Or the bank might do it based upon the exchange rate done on the date they write the letter that immigration requires.

[dcnx]

On 6/14/2019 at 1:40 PM, billsmart said:

My only thought is using an agent is illegal...

So is running red lights, speeding, bribery, smoking indoors, buying votes, prostitution, human trafficking, slave labor, corruption, and everything else that happens here.

 

”Illegal” doesn’t mean much here. But keep doing things the “right way,” I’ll be rooting for you.

[dcnx]

On 6/14/2019 at 9:14 AM, scubascuba3 said:

No thoughts?

Use an agent. Why deal with the hassle? It’s their system, do it their way. Immigration is in bed with the agents. Why on earth would anyone want to do things the hard way here?

 

Or move to Ecuador and get up to 8% for your money. 

 

There are lots of choices.