Jump to content

Fixed Terms Deposits in Cambodia - recommendations?


swissxcret

Recommended Posts

I was looking into fixed term deposits account in countries around Thailand and found this one which advertises very attractive interest rates for THB and USD.

http://www.acledabank.com.kh/kh/eng/ps_defixeddeposit.php

I am looking for advice on this subject. As a european working and living in BKK, I am looking to diversify my investment portfolio and like the low risk option of fixed term deposits. Is it safe to park some money in Cambodia? Can I trust such attractive interest rates? As i am not a resident of Cambodia, will that be a problem to open an account? Is it more risky that way?

If not Cambodia, where can I look to?

Many thanks for all your advice!

Jon

Link to comment
Share on other sites

  • Replies 99
  • Created
  • Last Reply

Acleda is a reputable bank. So, if they advertise these interest rates, I would believe they are honest. As with all such offers around the world, you might want to check out hidden fees or taxes.

The only problem might be with opening an account. Some bank require you to live an work in Cambodia before you can open an account, I don't know about Acleda. But this might be the reason they can offer rates above the world market.

Link to comment
Share on other sites

I'm getting 4.75% on 2 fixed deposits at the Foreign Trade Bank (FTB). So about the same as Acleda if for 12 months or less. But of the two, only Acleda has longer term rates.

Both Aceleda and FTB are about as solid as banks can get in Cambodia but of course your deposits are not insured the way they would be in a Western country.

Acleda also has the most geographical coverage of any bank in the country with a branch in every, or virtually every, province.

I don't know what they require to open an account, FTB is quite simple, or was back when I did it - just filled out a form and presented my passport.

One point to look into is whether you will be able to close the accounts or transfer money out of them on maturity without having to go to the bank in person, I had some problems with FTB over that.

Link to comment
Share on other sites

  • 2 weeks later...

Both Aceleda and FTB are about as solid as banks can get in Cambodia but of course your deposits are not insured the way they would be in a Western country.

According to a World Bank report Cambodia has implicit deposit insurance. That's exactly the same as Australia, New Zealand, Hong Kong and Singapore.

Source: http://siteresources.worldbank.org/INTRES/Resources/469232-1107449512766/DepositInsuranceDatabasePaper_DKL.pdf

However, this story would be enough to make me avoid depositing money with Aceleda: https://www.moodys.com/research/Moodys-downgrades-ACLEDA-Bank-withdraws-all-ratings--PR_244367 (Spoiler: Financial strength rating E+. That's about as bad as it gets.)

Link to comment
Share on other sites

According to a World Bank report Cambodia has implicit deposit insurance. That's exactly the same as Australia, New Zealand, Hong Kong and Singapore.

Source: http://siteresources.worldbank.org/INTRES/Resources/469232-1107449512766/DepositInsuranceDatabasePaper_DKL.pdf

Not really. That source assumes the government of Cambodia would respond according to international standards in a banking crisis. A dubious assumption IMO.

"As Demirgüç-Kunt, Kane and Laeven (2005) point out, every country has a de factoimplicit deposit insurance scheme (IDIS) in place since governments get pressed for relief at the breakout of a large systemic banking distress. We assume that if an explicit deposit insurance scheme (EDIS) does not exist, then the country has implicit deposit insurance."

Probably a reasonable assumption for Oz etc but not for Cambodia.

Link to comment
Share on other sites

Having read that moodys report, which is now more than 2 years old and shortly after that downgrade they stopped coverage, it seems that they were slightly more concerned with Cambodia`s rating as a country rather than Aceleda itself.

They also seemed to rate foreign currency deposits higher than local.

Above just my opinion.

S & P issued a somewhat more positive rating, not great, but not bad either at about the same time, I believe they also have stopped coverage.

Next time I`m in Cambodia I`ll see if I can open an account with them, the US $ deposit interest rate has some appeal for a smallish amount of money.

smile.png

Link to comment
Share on other sites

  • 1 month later...

Interesting.....

It would a great thing if there was a bank, or similar, that allowed a form of open registration by people (typically farangs) living in Thailand - and whereby it was possible to invest in some of the surrounding AEC countries.

We're not all money-launderers, criminals - or politicians tongue.png - looking to "stash" our cash. Some of us are interested in legally investing smaller amounts in, for example, expanding economies/countries, without the hassle of having to physically presenting ourselves in those countries, as is often the case.

I'm still waiting for Naam to start such a bank. I'll be the first customer, if I don't get trampled in the rush......whistling.gif

Cheers biggrin.png

Link to comment
Share on other sites

Interesting.....

It would a great thing if there was a bank, or similar, that allowed a form of open registration by people (typically farangs) living in Thailand - and whereby it was possible to invest in some of the surrounding AEC countries.

We're not all money-launderers, criminals - or politicians tongue.png - looking to "stash" our cash. Some of us are interested in legally investing smaller amounts in, for example, expanding economies/countries, without the hassle of having to physically presenting ourselves in those countries, as is often the case.

I'm still waiting for Naam to start such a bank. I'll be the first customer, if I don't get trampled in the rush......whistling.gif

Cheers biggrin.png

Really... are "we" not money launderers? I am know I am not, but how does the bank know?

In fact, that is the problem for foreigners who want to open bank accounts in ASEAN. Too much stuff has happened.

Link to comment
Share on other sites

  • 3 weeks later...

Figures are examples only but current. I did my research last week. Percentages are per annum (every year)

Banks...

ABA Bank

36 mnth USD... 6.5%

..............................................

Microfinancing institutions...

AMRET: 6 mth KHR 8%; 36 mnth USD 7.25%

PRASAC: 9 mnth USD... 7%, 12 mnth THB 8.5%

SATHA: 12 mnth USD... 7.5%; 12 mnth KHR 9.5%

AMK: 9 mths KHR... 10%; 6 mth USD 5.75%

Credit unions...

CMK: 6 mnth KHR 6.5%; 24 mth USD 5%

Link to comment
Share on other sites

  • 5 weeks later...

I just sent them an email as I am heading that way and was keen to try our ACELDA and the branch manager replied you need your passport and a letter of residence

Not sure how one can get that unless you live there ? Anyone tried recently and managed to open a fixed deposit with just your passport ?

Link to comment
Share on other sites

  • 3 weeks later...
  • 2 weeks later...

G'day

Was finally at Phnom Penh Commercial Bank this morning ...sorry too many temple tours and lazy weekends

Met up with branch manager Kea Sinat who speaks great English.

She was extremely helpful , took about 5 minutes to interview me as I went into Cambodia with no visa stamp ( used visa exempt 30 day with my Singapore passport) and the counter girl was unsure.

She asked about my work , whether I had business in Cambodia and once she was satisfied with her first impression ( same as in Thailand being polite , dress in a shirt and speaking well)

The account opening went without a hitch and no further documents was needed . She used my passport opened the fixed deposit for me at 6% annual interest and issued the certificate within 20 minutes.

They offered me the bank account option as well which I opened with $100 and free ATM card issued. This will help me in future with other banks as in my own experience in Thailand once they see you have existing account.

Money can be withdrawn at all their branches upon maturity and there is a 14% tax rate on the interest earned.

If you use an Evisa to enter the country with the stamp you pay 6% tax

For me it's just the step opening the doors into Cambodia banking system and I didn't mind paying the tax as at 5.1% interest rate after tax it is still more attractive than the banks in Thailand for parking your cash

PPCB is 90% owned by the Japanese and the rest Korean and I have no problem with small deposits below $20k USD

Service with a big smile free refreshments while you wait and of course the beautiful Cambodian smile

Link to comment
Share on other sites

She mentioned I could transfer the cash in / out with no fees to a savings account

Internet banking is an option although I didn't go for it as I travel in and out Indochina often and it's a quick trip to get the cash and you can withdraw from all of their branches and not limited to the one you opened at

Link to comment
Share on other sites

Yeap ...the ride from bangkok is 55 mins and at a good deal one way ticket is only 2000 baht :) great for a quick break and banking

I opened this at advice from a poster as PPCB had no other requirements except a passport and it's prove right

Once this is open which gives me a banking record in Cambodia ....my next bank account will be with Canadia or ACELDA where the Internet access is very easy and better rates

Will report on that shortly at the end of the year when I head here again to open another account

Link to comment
Share on other sites

7.5% >>http://www.ftbbank.com/sites/default/files/FixdepositrateKH.jpg

as far as i am aware it is not the evisa you need but the ordinary/business visa (as in, NOT the tourist visa), issued on request when you enter, that you need to get the lower rate of withholding tax. (something like 14 or 15 % VERSUS 5 or 6%) Khmer reil fix deposits pay about 1 % more than USD last time i checked which was long ago now.

not sure if you actually need to hold the ordinary visa for the whole term of your deposit or just on opening. (some banks eg. canadia with also require you to do the extension of the ordinary visa for x months) before they will give you the lower withholding tax rate

anz royal was giving the highest rates at the time. this is info only NOT recommendation

Link to comment
Share on other sites

The branch manager replied and ask me to apply for the 6 months Cambodia entry visa to enjoy the 6% tax rate and I will explore that as the larger the sum it makes a difference on the rate payable

She has proven to be extremely helpful and has recommended another product called installment deposit which gives 7.5% interest which is higher than the fixed deposit at a 36 month deposit term

I will consider that and report back

Cheers

Lawrence

Link to comment
Share on other sites

The branch manager replied and ask me to apply for the 6 months Cambodia entry visa to enjoy the 6% tax rate and I will explore that as the larger the sum it makes a difference on the rate payable

She has proven to be extremely helpful and has recommended another product called installment deposit which gives 7.5% interest which is higher than the fixed deposit at a 36 month deposit term

I will consider that and report back

Cheers

Lawrence

7.5% less 6% tax is still over 7% and well worth exploring. It'll be interesting to know if the other banks in Cambodia will have similar offers but with better internet and ATM access.

How much is the business visa for Cambodia and

http://penhpal.com/travel/obtaining-a-tourist-visa-or-a-business-visa-to-work-in-cambodia/

Looks like same as tourist/e-visa for the first month and then extendible.

Paying for annual extensions would need a calculation against the interest being earned.

Does the bank say it have to be valid for the whole period of the investment ?

Link to comment
Share on other sites

  • 4 weeks later...

Interesting.....

It would a great thing if there was a bank, or similar, that allowed a form of open registration by people (typically farangs) living in Thailand - and whereby it was possible to invest in some of the surrounding AEC countries.

We're not all money-launderers, criminals - or politicians tongue.png - looking to "stash" our cash. Some of us are interested in legally investing smaller amounts in, for example, expanding economies/countries, without the hassle of having to physically presenting ourselves in those countries, as is often the case.

I'm still waiting for Naam to start such a bank. I'll be the first customer, if I don't get trampled in the rush......whistling.gif

Cheers biggrin.png

Just curiosity...

Is there any bank in the West that I can open an account and invest some money without actually being there personally?

Link to comment
Share on other sites

  • 1 month later...

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.





×
×
  • Create New...