pdogg Posted January 14, 2012 Share Posted January 14, 2012 According to Dr Andrew Goodman on ThaiLaw.com the BOT has a protection plan similar to FDIC insurance in the States. Starting August, 2012 this protection will drop to 1 million baht per person per bank, adequate for most of us. The Deposit Insurance Act BE 2551 (2008) which came into force on the 11 th of August 2008 is the act which covers Thai protection provisions that relate to investor deposits at banks and other financial institutions. The protection of deposits is an ongoing concern for all investors large and small, and is becoming more and more of a concern in light of the multiple bank failures in the US and Europe over the past three years. The protection of deposits in a time of financial earthquakes, which seem to surround us on all sides, is of eminent concern. In Thailand , back in 1997, a number of banks, including Siam City bank, failed as part of the regional economic crisis of the time. The government responded by nationalizing the banks. When this happens, normally deposits are protected. Single bank failures usually will not result in nationalization, however, so this cannot be counted on as a general response of government to bank failure.For the purposes of the general investor, meaning any of us living in Thailand or holding funds in a financial institution here, the key item in the Act concerns the amount of protection per depositor and per bank. Since the Act came into place and through the 10 th of August 2011, the full amount of each deposit is covered. Because of this, it was not necessary to worry over where funds are placed, or how they are distributed between accounts. Whatever the amount deposited, you were covered. Period. Taking effect 11 August 2011 until 10 August 2012 , the coverage drops to 50 million baht per depositor per bank. For most of us, this is still quite a comprehensive coverage amount. The concern is going forward from 11 August 2012, just a little over a year away, when only 1 million baht will be covered by government protection. The implications of this change are significant, especially when one looks at how the coverage will apply. Multiple branches of the same bank will count as one deposit and will be lumped together. Though married couples will receive protection on a per person and per account basis of up to 1 million, separately, in the event of their owning a joint account, protection will not be separated out for that account. In most cases, the money will be split and counted against the individual account of each spouse. This means that management of funds across varied institutions may become a need for many depositors. Quote Link to comment Share on other sites More sharing options...
beijo Posted January 21, 2012 Share Posted January 21, 2012 The following might be interesting for US residents. It is my understanding that Bangkok Bank has a branch in New York and is therefore requiered to provide deposit insurance for any funds held in accounts at that branch and that it is possible to transfer funds from your US bank account to a Bangkok Bank account in Thailand via the New York branch. I might be worth exploring if one can open an account at the New York branch and if yes it should be possible to withdraw funds from that account when in thailand. 1 Quote Link to comment Share on other sites More sharing options...
pdogg Posted January 22, 2012 Author Share Posted January 22, 2012 The following might be interesting for US residents. It certainly is! :D About 5 years I visited the Bangkok Bank branch in New York and at that time they told me I could not open an account there. Not sure if it was because I was not a Thai national or perhaps there were other reasons. However, I do have a Bangkok Bank account in Thailand and I have done the wire transfer you describe a couple of times. It's an ACH from my American bank to Bangkok Bank in New York so there is no charge from my American Bank. However Bangkok Bank does charge a fee of $10 (for the amount I bring in) plus 500 baht so it turns out to be approx 25 USD. Some advantages is that the 25 USD is cheaper than a typical SWIFT transfer. You get the TT rate which is better than the cash or traveler check rate. Most importantly for me I can do it online with my American bank. Once click and I have the money a couple of days later. But unless one is bringing in relatively large amounts, say 10K USD or more, even the 25 USD fee is expensive. http://www.bangkokbank.com/Bangkok%20Bank/Business%20Banking/SMEs/Transfering%20Funds/Receiving%20Funds/Pages/Receiving%20Funds%20from%20USA.aspx http://www.bangkokbank.com/Bangkok%20Bank/Business%20Banking/SMEs/Transfering%20Funds/Receiving%20Funds/Pages/Receiving%20Funds%20form%20USA%20Fee.aspx I believe Bangkok Bank also has a London branch with the same scheme. I think the most efficient means of getting money into Thailand is if you can get travelers checks in 500 dollar denominations if you don't have to pay a fee for them back home. The Traveler check rate is better than the cash rate and with large deominations you save more than the 33 baht fee. Or bring new 100's as 100's get a better rate than 20's. Lastly and VERY important with any wire transfer you want the currency conversion to take place in Thailand, you will get a MUCH better rate that way if one is bringing in most major currencies unless you have a very special relationship with your bank at home. Quote Link to comment Share on other sites More sharing options...
Snick Posted January 22, 2012 Share Posted January 22, 2012 As PigDogg mentioned it is important to have the currency transfer take place in Thailand, so for inbound send as dollars and for outbound send out as dollars. Also there is a magic number for inbound wire transfers where they might hold the money while they determine what is the purpose, of course they do not tell you they are holding the money or what the magic number is. I think it is around $20,000 USD. The limit of bank insurance to 1 million Baht is new to me, thanks for the heads up (not that I have that problem...but maybe someday) Quote Link to comment Share on other sites More sharing options...
RocketSquirrel Posted January 25, 2012 Share Posted January 25, 2012 It seems as though $500 Travelers Checks are not so easy to find here in NYC. It was tough enough trying to explain that I was looking for checks in $500 denominations (as opposed to packages containing five $100 checks). Three Chase branches in the snootiest most entitled sections of the Upper East Side were clueless and unable to handle it. Interestingly, one person mentioned that Travelers Checks are falling out of favor and are being phased out due to lack of use and security concerns. Who knows... I gave up after spending the better part of 2 mornings on this and just went with the smaller denominations. 80 :) After this next trip, I will follow-up with Bangkok Bank since they do have attractive wiring options for those with accounts in the US and Thailand. Quote Link to comment Share on other sites More sharing options...
mildcigar2001 Posted February 1, 2012 Share Posted February 1, 2012 If a Thai bank goes bust, I'm assuming the Farang will be at the end of the line (if they are allowed tobe in line at all) to collect of the FDIC-type insurance (I think the main benefit of this insurance is that it helps avoid bank runs, which could crash a otherwise healthy bank if the wrong rumor got started). Quote Link to comment Share on other sites More sharing options...
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