banks aren't guaranteeing deposits

[Tchooptip 4,036]

So the Thai billionaires keep their money in Thailand under their mattress ?

[rwill 1,359]

It's better than no insurance at all...

[KKr 1,673]

14 hours ago, Ron jeremy said:

Anyone keeping large sums of money in Thailand is nothing short of an idiot.

Thanks Mate.

what is a large sum in your expert opinion ?

[JBChiangRai 9]

I read the small print in this deposit guarantee scheme and it’s ambiguous whether it applies to foreigners 

[Pib 14,261]

1 minute ago, JBChiangRai said:

I read the small print in this deposit guarantee scheme and it’s ambiguous whether it applies to foreigners 

Show us that fine print.

 

In the meantime, from the DPA.

 

http://www.dpa.or.th/en/articles/view/who-is-protected

 

Quote

 

Who is protected?

     Individual depositors are automatically protected upon opening a deposit account with a financial institution as prescribed in the Deposit Protection Agency Act B.E. 2551 (2008). Protection is based on a per depositor per institution basis, meaning that all of an individual’s deposit accounts across all branches of that financial institution will be aggregated into a single amount.

     Juristic depositors such as companies, funds, foundations, temples, associations, and cooperatives are also protected in the same manner as individual depositors.
     Foreigners with Thai baht deposit accounts at member financial institutions in Thailand are also protected under the Deposit Protection Agency Act. However, “Non-Resident Baht Accounts” as defined in the Exchange Control Act B.E. 2485 (1942) are not protected
 

Remark:

A “Non-Resident Baht Account” is a special type of deposit account denominated in Thai baht that is used solely for transactions as specified in the Exchange Control Act. A “Non-Resident” means:

1)  Corporations, institutions, funds, financial institutions or juristic persons located outside Thailand.
2)  Entities of foreign governments located outside Thailand.
3)  Branches and agents of domestic juristic persons located outside Thailand
4)  Natural persons not of Thai nationalities and not having alien identity or residence permits.

However, “Non-Residents” exclude:

1)  Thai embassies, Thai consulates or other entities of Thai government located outside Thailand.
2)  Foreign embassies, foreign consulates, specialized agencies of the United Nations, international organizations or institutions (both financial and non-financial) located in Thailand.
3)  Branches and agents of foreign juristic persons located in Thailand.

 

 

 

 

 

 

[Pib 14,261]

And please note Foreign Currency Deposit (FCD)...that is, folks who have USD, GBP, EUR, etc., accts are not covered; only accts in Thai baht are covered.

 

http://www.dpa.or.th/en/articles/view/protected-deposit-products

 

 

Quote

 

Protected Deposit Products

     Protected deposit products are deposit accounts that are opened at member financial institutions under the Deposit Protection Agency Act. They must be denominated in Thai baht and must be opened within the country. Currently, there are 5 types of protected deposits:

• Current deposit accounts
• Savings deposit accounts
• Fixed deposit accounts
• Certificates of deposit
• Deposit receipts

     Financial products or certain deposit products that are not protected include:

• Foreign currency deposit accounts
• (SSF, RMF) Money invested in bonds, debentures, mutual and tax-saving funds (SSF and RMF)
• Deposits in cooperatives
• Cashier’s cheques and bills of exchange
• Electronic money (e-money)
• Savings insurance products offered by insurance companies

 

•  

[Pib 14,261]

And to increase your coverage it's best not to have all your money with only one bank like Bangkok Bank, Kaiskorn Bank, SCB, Krungsri Bank, etc. And having all your money in multiple branches of the same bank, like having money in Branch A and Branch B of Bangkok Bank, counts as having your money in only one bank....one institution.   

 

Since the max coverage is going to be Bt1M come 11 Aug 2021 if you are going to have more than Bt1M in your acct(s) you should consider splitting it among banks/institutions to increase your coverage.  Like keep Bt2M evenly split between two banks to have Bt2M coverage....three banks for Bt3M coverage....etc.

 

 

http://www.dpa.or.th/en/articles/view/protection-limit

Quote

 

What's the coverage limit

     If a member financial institution’s license is revoked, depositors of that institution will receive their deposits from the Deposit Protection Agency up to the coverage limit. The coverage is based on a per depositor per institution basis (not one account per institution), meaning that depositors with multiple accounts across all branches of that institution will have those deposits - both principal and interest - aggregated into a single amount.
The current coverage limit is 5 million baht until 10 August 2021. From 11 August 2021 onward, the coverage limit will be 1 million baht.

 

 

[Pib 14,261]

And what about "joint" owned accts with the coverage rule being:

 

Quote

The coverage is based on a per depositor per institution basis (not one account per institution), meaning that depositors with multiple accounts across all branches of that institution will have those deposits - both principal and interest - aggregated into a single amount.

 

Well, below is an example....keep in mind the example is based on when the coverage was Bt15M...it's now down to Bt5M...and going to Bt1M next year/11 Aug 2021

 

http://www.dpa.or.th/en/file/download/khumux-tham-txb-phasa-xangkvs

[Max69xl 2,763]

19 hours ago, ukrules said:

I believe this has been delayed.

 

It's deposit insurance. If they go bankrupt then you get a maximum of 1 million Baht back via the insurance scheme.

 

If you have a balance of 10 million then you get 1 million, it's as simple as that.

 

Why have they been reducing this coverage in stages over the years is the real question here......?

The deposit guarantee is still 5 million baht. They were supposed to decrease it to 1 million in August this year but they extended it 1 more year. 

[Jaxxper 589]

20 hours ago, ukrules said:

Why have they been reducing this coverage in stages over the years is the real question here......?

Until August I believe it was Thb 5.0 Million. SCB told me this about 3 months ago before it was reduced to Thb 1.0

[ChipButty 15,617]

Only the other week the government are telling farang must have 3 million Baht in a bank account

[fangless 3,591]

10 minutes ago, ChipButty said:

Only the other week the government are telling farang must have 3 million Baht in a bank account

Only for a specific type of visa/incentive.  It is NOT for standard visas/extensions.

[baansgr 9,671]

18 hours ago, VBF said:

Presumably, it's 1 mil per institution ie 1 mil with SCB + 1 mil with Kasikorn etc.? If so possible to mitigate some risk that way.

 

Sorry for Thai people who have no choice, but really any foreigner who keeps lots of dosh in what is still, essentially a 3rd world banking system isn't very smart. Having seen the pitiful security, both personal and electronic practised in Thailand I don't think I'd keep any more than essential even if i did live there.

 

Especially seeing how easy it is today to transfer from a better-protected account Eg UK is  £85K per institution - approx 3,655,000 Baht. I presume the interest rates in Thailand are as pathetically low as other countries - I haven't bothered to look as it doesn't affect me.

The banking system is way ahead of anything in UK. OTPs have been in Thailand almost 10 years...internet banking is far superior and easier. Instant transfers as long as I can remember but UK was 3 working days until only a few years ago....Thai Banks win hands down for me....

[Brunolem 7,178]

22 minutes ago, baansgr said:

The banking system is way ahead of anything in UK. OTPs have been in Thailand almost 10 years...internet banking is far superior and easier. Instant transfers as long as I can remember but UK was 3 working days until only a few years ago....Thai Banks win hands down for me....

This has nothing to do with the financial health of these banks.

[fangless 3,591]

43 minutes ago, baansgr said:

but UK was 3 working days until only a few years ago.

Wrong!!    CHAPS/FPS,  was introduced in 1984,

Faster Payments Service (FPS) is a United Kingdom banking initiative to reduce payment times between different banks' customer accounts to typically a few seconds, from the three working days that transfers usually take using the long-established BACS system. 

Edited October 18, 2020 by fangless