• 
• 

Published on August 20, 2007

The option to deposit foreign currency with local banks will relieve appreciation pressure on the baht too.

The Bank of Thailand recently relaxed foreign-currency deposit regulations for both resident corporations and individuals.

Four banks currently offer foreign-currency deposits for individual depositors. More banks are expected to follow suit.

Before today, this option was limited, and minimum deposits were high. Commercial banks offering foreign-currency deposits are Bangkok Bank, Krung Thai Bank, Kasikornbank and HSBC Thailand.

Some are advertising special interest rates and fee reductions as promotions. However, each sets different conditions.

Bangkok Bank accepts deposits in nine currencies: euros, pounds, yen, Swiss francs and United States, Hong Kong, Singapore, Australian and Canadian dollars.

The country's biggest bank pays savings deposit interest for US dollars at 3.5 per cent per annum. Interest for other currencies ranges from 0.35 per cent to 3.6 per cent.

Fixed deposits for one to 12 months for US dollars attract 3.9 per cent to 4 per cent. Other currencies get between 0.6 per cent and 4.2 per cent. There is no interest rate offered for yen at all.

These rates are as much as 0.75 per cent higher than those for baht accounts at major banks.

Savers need identification

to open an account and minimum deposits are US$5,000 (Bt172,400), or the equivalent in other currencies. The source of the money must be identified.

Fees are 1 per cent of the total deposit, and withdrawal fees are 2 per cent. If money is deposited or withdrawn in baht there is no charge, but exchange rates are calculated on the spot.

A balance of $5,000 must be maintained, or a $10-a-month service charge will be incurred.

To attract customers (and cooperate with the central bank) Krung Thai Bank is offering special promotions. Transfers from overseas are free of charge - these are normally 0.25 per cent of the total, or Bt500 per transaction.

Fees for deposits and withdrawals in foreign currencies have been cut from 2 per cent of the total deposit to 1 per cent. Depositors will not be charged on overseas transfers via the Internet.

The bank has decreased the minimum deposit amount from $10,000 to $3,000.

Krung Thai Bank offers deposits in eight currencies, the same as Bangkok Bank minus Canadian dollars.

The rate for the US dollar is 3.4 per cent per annum. Fixed rates for one month to 12 months are between 4 per cent and 4.1 per cent.

Savings rates for other currencies are quoted at 0.5 per cent to 4.7 per cent, while the fixed rates for other currencies stand at 0.6 per cent to 4.7 per cent.

Kasikornbank does not have a maintenance fee but demands a minimum balance of US$50,000.

The country's fourth largest bank offers saving rates for US dollars at 3.5 per cent per year, while other currencies are 0.5 per cent to 3.65 per cent, excluding yen. Fixed rates range between 3.9 per cent and 4 per cent for US dollars, and other currencies are quoted at 0.6 per cent to 4.7 per cent. Kasikornbank accepts the same currencies as Bangkok Bank.

HSBC offers savers already using its services as students in the UK special privileges.

Customers with more than Bt3 million on deposit get special deals too. Branches in the UK open foreign-currency accounts for high net-worth clients without fee. A credit card comes automatically.

The foreign bank accepts deposits in the same currencies as Bangkok Bank minus Swiss francs and Canadian dollars.

Savings rates for US dollars and pounds are 3.4 per cent and 3.25 per cent respectively. The fixed-deposit rates for one month to 12 months are 3.9 per cent to 4.1 per cent for dollars and 3.85 per cent to 4.35 per cent for pounds.

Somruedi Banchongduang

The Nation