Thai Interest Rates

[PigDogg]

Thai interest rates just went up and inflation is soaring in the LOS mainly due to food and oil.

BOT could raise raise again in July. My guess is that they won't be cutting rates anytime soon so going with the 4 month CD seems to be the best option.

These rates are what Kasikorn Bank is offering today. Anyone know of any other Thai Banks with better deals?

[katoeylover]

is it safe? would rather put my money in Singapore.

[Monkey]

Buy pork bellies..

but don't ask me, if I'm honest, I'm a financial idiot...

[SukhumvitRoad]

(katoeylover @ Jun. 04 2008,05:51) is it safe? would rather put my money in Singapore.

It's not just a safety issue. Banking in Thailand is a scam like most other business in Thailand, and anyone who places a deposit with a Thai bank is assisting in his own mugging.

The spreads in Thailand between bank lending and deposit rates are now about 5%, higher than anywhere I have ever heard of anywhere else in the world. Even the Post was driven to comment on that yesterday. And, as Jack Kennedy once said in a different context, that's a little like L'Osservatore Romano criticizing the Pope.

By contrast, the commercial rate for offshore baht deposits is over 5% (although you, as an individual depositor, frequently can't get that rate). The local Thai bank can simply take your deposit here, pay you 2.8% or so, then wire the same funds offshore and redeposits them at a rate 5.3% or more. That's a 2.5% profit on somebody else's money at zero risk. No wonder Thai banks have been paying off politicians for generations to keep their effective monopoly over local banking intact.

[SamplerDoc]

Like I was saying

Put the money in my Bank....SamplerDoc Savings.
I will pay you 3% for 4 months.

The Fine print....I will invest it overseas and pocket 2%

[manarak]

huh? is the question about borrowing or investing?

if borrowing: take the 15 month deal.

if investing: forget this crap. find yourself some structured rates product, swapping the 30 against the ten year USD rate, get 8% paid in USD.

[thaibound]

(manarak @ Jun. 04 2008,13:13) find yourself some structured rates product, swapping the 30 against the ten year USD rate, get 8% paid in USD.

swap the who with the what to get how much?

can anyone extrapolate that overly brief directive toward obtaining 8% on your savings? if i understood it, maybe i could do it.

thanks.

[SamplerDoc]

Wasn't Franck offering 8% for all loans paid back after 1 month

[pampamsam]

(SamplerDoc @ Jun. 05 2008,18:37) Wasn't Franck offering 8% for all loans paid back after 1 month

SamplerDoc, Franck's deal was much better. 10% per month or 120% annually.

Who can beat that?

I think he re-invested in Portugal...

[manarak]

It could be a CPI CRAN, i.e. Capital Protected Investment / Callable Range Accrual Note

If you do some searches on "Range Accrual Note" you will find some results.

Currently, 30 year USD against 10 year USD is interesting, and can pay 8%. It is not totally risk free, but the capital is protected.


Examples:

http://www.hsbc.com.hk/1/2/hk/investments/sp/spep/range/range-acc

http://dbs.com/cn/personal/structured/pdf/3mnzdusd270407sz_en.pdf

Ask your bank and be vigilant on fees & conditions.

[Guest]

better to leave it in the home Country I can get over 8% in Aus right now.I leave the cash there, make money in Aus dollars and spend it over here.
Yesterday I got 31.14 baht for my Aus dollar.Haven't seen a rate like that since close to the collapse of 97