Banking in Thailand vs Philippines question

[Turbota 0]

Got a banking question for you folks living in LOS:

 

I live in the PI, but may move to the Pattaya area soon on a Retirement visa.

 

How do most expats do there banking here in the PI?

 

We have 2 choices of bank accounts here ... A Dollar account or a Peso account.

Most of us have US funds in a bank or credit union in the US, so opening a Dollar account in the PI bank is the best bet.

 

After we deposit the minimum required $500 in our Dollar account in order to open the account, then we just write a check from our bank in the US and deposit it into our dollar account. After the check clears (takes about 30 days), the money is available to us to withdraw as needed. Then we just fill out a withdrawl form and recieve US dollars from the bank.

 

We could then take the dollars and just change them to pesos at the same bank, but the money changers in town will give a better rate, so almost everyone goes downtown to change there dollars.

________________________________________

 

My question is: Is this how it's done for foriegners living in Thailand?

 

Somehow, since you will making a deposit into your account by writing a check from your US bank/credit union in dollars, it seems to me that the bank needs to give you dollars back when you need to make a withdrwal for living expenses. (I can't image living for years in LOS using just ATM machines and credit cards)

 

Hope someone can explain how the banking system works for us foriegners that don't get paid in Baht.

 

Thanks,

Ron

Edited February 6, 2007 by Turbota

[Eneukman 1]

I took early retirement nd now live full time in Pattaya.

 

If you are going to apply for a retirement visa, you have 2 options. One is to prove that your income in in excess of 65,000 baht per month. If that is awkward for you, then you must show that you have a minimum of 800,000 baht in a Thai bank account. The funds in this account MUST have come from outwith Thailand, so this would seem to rule out paying in US dollar cheques. The funds must also have been in the account for a minimum of 3 months when you apply for the visa. Your account will be Thai baht.

 

I have a retirement visa and simply arrange for funds to be transferred from my Isle of Man account to my Bangkok Bank once a year. To the best of my knowledge, it is not possible to get a cheque account with this type of visa so you must open a savings account. When the account is opened, you will be given a passbook and a debit card. I just draw 20,000 baht from my account whenever I need funds.

 

Alan

[Turbota 0]

Eneukman ... Thank's for the reply, but I really was not needing info on the requirements for a Retirement visa ... Basically, all I was wondering is how you guys living in LOS get you money from your foriegn bank account to your hand anytime you need money for rent, food or whatever while actual;y living in Thailand.

 

As you did say, when you open an account in a Thai bank, they give you a debit card so you can pull money from the various ATMs around town from your Thai bank account as needed for living expenses.

 

Since that money that you every once in awhile [deposit] in your Thai bank account to replenish it is in foreign funds (ie: a personal check you write to the bank or a wire transfer), does the Thai bank automatically convert it to baht so you can take baht out of the ATM machines as needed for living expenses?

 

Ron,

[redwood13 56]

What I think most retired Americans do here is transfer funds from their US bank account into a Thai bank saving account, (I use Bank of Thailand) using a repetitive wire transfer agreement. This agreement has to be initiated in the US. I request transfer by a telephone call to the US using a security code. I believe some US banks will process the transfer using the Internet but mine will not - this is once the agreement is in place. Dollars are transferred and then changed into baht, as you have a baht account, in Thailand which gives the preferred rate of exchange. You can then access funds using the ATM card issued on opening the account.

 

I'm told you can deposit foreign bank checks into your Thai account but it may take several weeks for the funds to be available. And as Alan pointed out you wouldn't have proof as to the source of such funds. With a retirement visa you don't want Immigration to have any suspicion that you're working in Thailand. When you apply for an extension of stay after your first year here they will want to see a letter from your Thai bank stating your account balance and also your bank book showing the same balance. They may also examine the bank book to see what sort of activity your account here has had. Funds sent by wire transfer will be coded in your bank book indicating foreign origin.

 

-redwood

[Turbota 0]

redwood ....

 

Thank's for the great explaination! That explains what I was trying to understand.

 

Instead of wire transfering money from an account in the US (and the wire transfer fees), I just thought it would be easier to just write a personal check from my credit union in the US and deposit it into my baht savings account .... wait the required time for the check to clear, and then just withdraw money as needed .... at least that's how most of us do it here in the PI.

 

Ron,

[HansumRob 3]

Question: How do you prove the recurring monthly income?

 

Example: Retired military and get a regular monthly check that more than meets the requirements outlined.

 

Thanks,

HR

[redwood13 56]

Question: How do you prove the recurring monthly income?

 

Example: Retired military and get a regular monthly check that more than meets the requirements outlined.

 

Thanks,

HR

 

Some sort of statement of entitlement for X dollars per month issued by the military at your retirement should be satisfactory. The US Embassy only requires you to affirm that you receive a monthly amount from the US Government and/or other sources. They don't require you to show any evidence of the amount you claim to receive. The British Embassy does require documentation.

 

However there have been reports on thaivisa that at least in the case of Bangkok Immigration there have been demands to see financial documentation to satisfy the requirements for retirement. This has been for all passport holders not just Americans. I've seen nothing about any such policy at Pattaya Immigration.

 

You don't of course have to actually bring the equivalent of 65K baht into Thailand each month.

 

-redwood

[winner 0]

I live in Bangkok and simply take money as needed from my US account from an ATM. I require two withdrawals a month for my needs. I have also withdrawn enough to have three months expenses available in my Thai account in case of a problem with my ATM card. I have been doing this for 4 years now and never a problem. My US bank (Netbank) does not charge for ATM use so no fees also!

[redwood13 56]

redwood ....

 

Thank's for the great explaination! That explains what I was trying to understand.

 

Instead of wire transfering money from an account in the US (and the wire transfer fees), I just thought it would be easier to just write a personal check from my credit union in the US and deposit it into my baht savings account .... wait the required time for the check to clear, and then just withdraw money as needed .... at least that's how most of us do it here in the PI.

 

Ron,

Posted yesterday on thaivisa a guy does as you describe. He deposits a check drawn on his US credit union into his Thai account and is given a receipt. He says that this has been acceptable to Immigration officials where he lives.

 

Total cost: 203 baht

 

See posts #10 & 13.

 

http://www.thaivisa.com/forum/index.php?sh...105702&st=0

 

-redwood

[rogercw 3]

When I got to Thailand I opened a Bangkok Bank savings account with 5,000 baht cash. They would not let me deposit a personal check until the account was open for 6 months.

When the six months was up I deposited a personal check for 5,000 dollars. They put a hold on the money for 45 days to be sure the check cleared. Then I deposited 3,500 dollars which I am now waiting 45 days for it to clear the hold. My balance is now 310,000 baht.

In March when this has cleared I will start depositing 5,000 dollars at a time, drawing baht from the bank's ATM until my balance is down to about 300,000, and then depositing another 5,000 dollars.

A balance of 300,000 baht plus a pension income of over 2,000 dollars will keep Immigration happy and the fees involved will be minimal.

Until this process is complete I have been taking 20,000 baht at a time out of my checking account at a bank ATM.

I expected to be able to make a check deposit to open the account but discovered the six month rule. Went to two other banks same story about the six months. Oh well.

The bank charged me a fee of 371 baht for the deposit of 5,000 and 364 for the deposit of 3,500.

Sounds complicated but it really was pretty simple. Since I expect to be here 5 or 10 years a little hassle the first year is no big deal.

[kdc1899 1]

I will not give up dollars for the trumped up baht except for neccessities. If I put in 5,000 dollars now at baht 34, and, (WHEN) the baht goes back to 39, I have lost 25,000 baht.