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Impact of Changing Banks On Retirement Extension Of Stay

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I have what's commonly referred to as a retirement visa, a one year extension of stay that expires around October 15th.

 

Using the 800K in bank method, my understanding is that I must have 800K baht in the bank during the period starting 3 months before renewal of my extension of stay until 3 months after the extension of stay.  Otherwise the account can't dip below 400K baht.

 

I am considering shifting the bulk of my money in Thailand from a Krungsri Mee Tai Dai account (1.1% interest but surprisingly 1.3% if the account has less than 100K baht) to a SCB Jad Tem account (1.5% interest).  These accounts seem similar to me in that they both offer a relatively high rate of interest, but limited to just 2 free withdrawals a month.   

 

So I guess the best way to do this is to open the account with around 400K baht and then a few days later move another 400K baht into the new account.  Then that way I will always have had at least 400K in an account.  

 

This seems straightforward enough but just want to make sure that I'm not missing something.  Am I?

 

Also a couple questions for those who have a Jad Tem account:

 

https://www.scb.co.th/en/personal-banking/deposits/savings-account/jad-tem-account.html

 

Has Jad Tem been around for awhile and always offering a relatively high rate?  With my Mee Tai Dai account the interest rate has fluctuated depending on the BOT monetary policy but has always been quite good.   I assume it's the same with the Jad Tem account.   I don't want to go through the hassle of opening an account to find that in a few months they are only offering 0.5% interest.

 

Have anyone bee able to stop SCB from withholding 15% tax on the interest in their Jad Tem account by providing your Tax ID number but not a Tax ID card?  Krungsri is insisting on a card and the Revenue Office claims that they are not issuing cards anymore. The Revenue Office has given me a printout with my Tax ID but this does seem to satisfy the Krungsri head office.   

 

Anyone know of a better alternative than the Jad Tem account to satisfy Immigration?

 

 

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Money has to be in the bank 2 months before application. 

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5 hours ago, shortstop said:

a SCB Jad Tem account (1.5% interest)

 

That's not the actual interest rate.  The first 100k receives interest at 0.5%.  So, on 800k that's 100K at 0.5% and 700K at 1.5% - effectively 1.1% and exactly the same as Mee Tae Dai.

 

 

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Posted (edited)
24 minutes ago, Oxx said:

 

That's not the actual interest rate.  The first 100k receives interest at 0.5%.  So, on 800k that's 100K at 0.5% and 700K at 1.5% - effectively 1.1% and exactly the same as Mee Tae Dai.

 

 

Interest on 800k would be 100,000*0.5/100+700,000*1.5/100 = 500+10,500 = 11.000, which is an effective interest rate of 1.375% p.a.

 

However, the OP might be disappointed. While SCB does indeed advertise an interest rate of (up to) 1.5% on the account, that interest rate is seemingly already outdated. This is SCB's posted interest rates effective from 25th of May:

image.png.a0fdafce2fdf8565c140d487a7f8ad12.png

 

So from tomorrow, presumably as a reaction to the Central Bank's lowering of interest rates, the interest rate on the Jad Tem account will be 0.25%/1.25%. On 800k that will be an effective interest rate of 1.125% p.a. or about the same as Krungsri Bank is paying. Of course, it's possible that Krungsri Bank will also lower their interest rates in response to the Central Bank announcement.

 

Historically, SCB has not been a market leader on interest rates on deposit accounts.

 

 

Edited by Sophon
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3 hours ago, Malawi said:

Money has to be in the bank 2 months before application. 

This is not universally true. Some Immigration offices still require 3 months before. Giving your location might elicit a reply from someone with local knowledge. Failing that, check with your Immigration office; probably a good idea in any case.

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On 5/24/2020 at 1:18 AM, shortstop said:

Krungsri is insisting on a card and the Revenue Office claims that

As far as i am aware no tax is payable on interest a Mee Tia Dai a/c i have never been asked and was in fact told 'you not pay tax'

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Posted (edited)
On 5/24/2020 at 7:26 AM, Sophon said:

Interest on 800k would be 100,000*0.5/100+700,000*1.5/100 = 500+10,500 = 11.000, which is an effective interest rate of 1.375% p.a.

 

However, the OP might be disappointed. While SCB does indeed advertise an interest rate of (up to) 1.5% on the account, that interest rate is seemingly already outdated. This is SCB's posted interest rates effective from 25th of May:

 

So from tomorrow, presumably as a reaction to the Central Bank's lowering of interest rates, the interest rate on the Jad Tem account will be 0.25%/1.25%. On 800k that will be an effective interest rate of 1.125% p.a. or about the same as Krungsri Bank is paying. Of course, it's possible that Krungsri Bank will also lower their interest rates in response to the Central Bank announcement.

 

Historically, SCB has not been a market leader on interest rates on deposit accounts.

 

 

 

If the total is 800k, it is 1.25%. The 0.25% is only for TOTAL balance less than 100k, it's not the FIRST 100k.

 

Krungsri is still 1.1% as of today

 

https://www.scb.co.th/content/dam/scb/personal-banking/product-sales-sheet/deposits/jad-tem-account-en.pdf

 

Another disadvantage of SCB is that you can't have ATM card nor direct debit on this account. What does direct debit means?

 

Is it worth to transfer our money there for 1200 baht more per year?

 

Edited by EricTh
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15 minutes ago, EricTh said:

If the total is 800k, it is 1.25%. The 0.25% is only for TOTAL balance less than 100k, it's not the FIRST 100k.

 

I believe you are wrong.  Whilst this is how the Krung Sri account works, it appears not to be how the SCB account works.  If you look at the SCB website, it shows 0.5%/1.5%, but there is a note 

 

Quote

*Average interest calculation ranges between 0.50% - 1.49% p.a., depending on deposit amounts.

 

If what you wrote is correct, then the range would be to 1.5% p.a..

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3 hours ago, brianthainess said:

As far as i am aware no tax is payable on interest a Mee Tia Dai a/c i have never been asked and was in fact told 'you not pay tax'

Prior to May 2019, withholding (maybe just foreigners not sure) only started after you earned 20,000 baht in interest.  To get around that when interest rates were higher, the lady at Krungsri advised me to open a 2nd account so neither account earned more than 20K a year in interest.   Note this is not tax avoidance as I believe if you earn less than 150K you are in the 0% tax bracket but it saved me the hassle of filling out a tax return and waiting for a refund.

 

But now as of May 2019, the withholding of tax applies to all amounts.   Perhaps you aren't noticing the deductions?   Every month I see an entry coded IN for interest and TX for the tax withholding.   Or perhaps your tax ID number is already in their system somehow?   

 

At an interest rate of 1.1% the 15% tax on a balance withholding of one million baht comes out to 1650 baht so not the end of the world if I never get my tax refund which I haven't yet received even though I filed on January 3rd?    Has anyone received their tax refund already and if so was it electronic which I was told not possible or by receiving a mailed check or by going to the Revenue Office to pick up a check?     

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Posted (edited)
3 hours ago, EricTh said:

Is it worth to transfer our money there for 1200 baht more per year?

If it was only the 1200 baht then I would not.  But if they can assure that there will be no tax withholding by showing them a printout from the Revenue Office then I think I might do so.

 

What my branch of Krungsri wants is a tax iD card that I don't have, never received although could have been sent to me, and the Revenue Office won't give me.  Not for lack of trying as I have probably been to my branch a dozen times and the Revenue Office a few times to sort this out.  The bank even took me to the Revenue Office, it was me, a bank officer, and a driver which really surprised and impressed me.   The Revenue Office people told the bank officer my valid Tax ID number but said they don't issue cards anymore.  I thought this would certainly solve the problem. My branch then noted this to head office and the head office still said they must continue the withholding.  

 

 

Edited by shortstop

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Posted (edited)
2 hours ago, Sophon said:

A mentioned you are clearly wrong. This is a quote from the PDF you linked to:

If SCB was paying 1.25% on the whole deposit amount if balance is larger than 100k, then the average for amounts between 100,001 and 500,000 wouldn't be 0.25% - 1.05%. It would simply be 1.25%.

 

Also from their advertisement:

image.png.3b8fef1e25e4b4827107c81cdb36ddc5.png

 

They clearly state that the interest rate is 0.50% for "the first 100,000", not for account balances smaller than 100,000 Baht.

 

"Direct debit" means that you authorize a company (typically a utility company) to withdraw what you owe them from your account themselves. I pay my electricity bill to PEA via Direct Debit, so I don't have to remember to pay the bill myself.

It's the English wording that is wrong. The first chart is misleading , it should say 'the first, the next etc. I guess it's due to their wrong translation. 

 

I am not sure whether Krungsri meant the account balance or the first, next steps .

 

Edited by EricTh

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25 minutes ago, shortstop said:

P   Has anyone received their tax refund already and if so was it electronic which I was told not possible or by receiving a mailed check or by going to the Revenue Office to pick up a check?     

Yes, I have received my tax refund a few months back. I applied for my tax refund in Jan 2020.

 

They mailed a coupon (not really a check) where you can go to any branch of Krungthai Bank to claim the money. It's a lot of hassle for a small amount of money.

 

They used to send a check several years ago and it was much simpler when I can go to any banks to cash the check.

 

My Krungsri bank does not deduct any tax after I gave my tax id, maybe my branch manager is more customer service oriented. PS. I don't have a tax card either, I just gave my tax coupon slip from past years as proof.

 

 

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Posted (edited)
18 minutes ago, shortstop said:

If it was only the 1200 baht then I would not.  But if they can assure that there will be no tax withholding by showing them a printout from the Revenue Office then I think I might do so.

 

What my branch of Krungsri wants is a tax iD card that I don't have, never received although could have been sent to me, and the Revenue Office won't give me.  Not for lack of trying as I have probably been to my branch a dozen times and the Revenue Office a few times to sort this out.  The bank even took me to the Revenue Office, it was me, a bank officer, and a driver which really surprised and impressed me.   The Revenue Office people told the bank officer my valid Tax ID number but said they don't issue cards anymore.  I thought this would certainly solve the problem. My branch then noted this to head office and the head office still said they must continue the withholding.  

 

Talk to your branch manager and if he won't, just move the money away.

 

My branch manager could do it for me, I have bank interest credited into my account every month but SCB Jad Tem can only credit every 6 months.

 

I tried to put my tax Id on my SCB fixed deposit and they said there's no such service so I moved all my money to Krungsri Mee Tae Dai.

 

 

Edited by EricTh
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