What should I know about the 14-year saving policy from Bangkok Bank?

I have a similar one, I paid in 220,000 a year for 6 years, then every May I get 13,000 Thb in "dividends", after 13 years I get my initial 1.3m back.

This is a savings-type life insurance policy that pays guaranteed annual returns as shown, with additional dividends that are not guaranteed.

Many Thais use this mainly for tax deductions.

It’s suitable for people who want forced savings with life cover, and these shorter savings-type policies often don’t require detailed health questions.

This is a savings-type life insurance policy that pays guaranteed annual returns as shown, with additional dividends that are not guaranteed.

Many Thais use this mainly for tax deductions.

It’s suitable for people who want forced savings with life cover, and these shorter savings-type policies often don’t require detailed health questions.

You will be better off investing in a combination of ETF that will give you a dividend of 8%

Actually THB is sort of linked to Gold which is a hedge against inflation… the USD is depreciating at a rate of 10% a year - I’d rather be holding THB than USD

You will learn, as many of us have, not to use Bangkok Bank.

This is savings/insurance tool… mainly for getting the 100k per year tax reduction. If you are planning on working here… and being around to pay in each and every year until fruition, the tax savings might be worth it.

If you want flexible savings options…. There are other savings options available

Try uploading it into Chat GPT. You can ask it to explain it to you thoroughly

I would suggest paying for professional advice rather than taking social media “expertise”.

Well in short inflation will beat all those percentages and in the end you end up having more baht but with a lower purchasing power than your initial investment at the time you started 😜😃 just wait for the silver and gold CRASH. Gold and silver haven't been this oversold in over 50 years. Correction incoming.

Thai banks love to wrap savings and insurance.

Rubbish

You lock 300,000 THB for 14 years to expect:

+45,000 to +95,000 THB at best

➡️ roughly ~1.1% to 1.6% net per year in reality.

👉 That barely keeps up with inflation in Thailand, and sometimes not even.

Here's the way it works.

(I've got a couple of these from Bangkok Bank.)

You pay the (50,000) each year for 6 years. (300,000 in total.)

In year 2 (and each year after) you get an interest payment of 1,503 baht.

It jumps to 2,004 from years 6-10 and then 2,505 for the last 3 years.

So over the course of the 14 years, you've received a total of 25,050 in interest.

And then you get your 300,000 baht deposited back into your account.

The "Cash Value" is how much you'd get back if you cashed in the investment early.

The "Total Benefit for Surrender" is the total value of the interest paid so far plus the "cash value".

They also show the "benefit from tax deductable".

I think that's how much you'd get back on your taxes (if you filed any).

That's why they show it at the bottom as "Total benefits greater than the total paid premium". It's the Interest payments you've received plus the tax deduction.

I cashed one investment early a few years ago when the "total benefit for surrender" was basically equal to what I'd deposited.

So basically I just got my actual investment back with no interest.

But the purpose (for me) wasn't the interest but sticking the money somewhere I couldn't use it for "impulse" buying in case I saw something shiny that I didn't actually need.

And the problem with the "Fixed Term" accounts was that they usually only offered a higher interest rate for a short period and when that period ended the interest rate dropped to about the same as a regular savings account interest (as in barely anything).

Whereas these "Gain" investments end up giving you a higher interest rate - but your money is basically locked in for a much longer period.

I just pulled my "Gain 245" when I set that one up in 2016,

I paid 100,000 a year for 7 years (700,000 total).

When it matures in 2031, I will have received a little over 218,000 baht in interest (or "dividend") payments. However the "cash value" is about 28,000 less than what I invested so together it comes out to 890,000 (investment plus interest payments) for a "profit" of 190,000 baht.

I guess that works out to basically 2.35% interest.

And NOTE !!! THESE "Gain" type investments DO NOT COUNT towards your (400.,000) Retirement Extension financial requirements !!!

NOT EVEN if you have a higher "Total Benefit for Surrender" than the (k) needed.

The money that Immigration expects you to have (if you are using "money in bank" method) HAS to be in a Savings or Fixed Term account and NOT in "stocks, mutual funds or other investments".

Because the expectation is that if you need the money you can access it immediately (at the bank at least) without having to cash in anything and wait for the paperwork and "business week" to end before you can access the money.

And I checked last summer about one of my Gain investments that I thought was due.

It is actually due next summer and when the term is over, your investment (in full) is automatically deposited into your account.

And then you can move/spend/re-invest it as you see fit.

In hindsight - I should have had the interest payments deposited into my Fixed Term account that I keep my "Extension" money in and just let it accumulate as I didn't really need it.

Not savings but insurance policy

They will freeze your account and steal your money.

I asked the same in Bangkok Bank. They suggested me insurance, but I don’t neet so I specified I want to invest in stock and bond. They give me app and now I can invest. The app is not perfect but it can work.

Worst possible way to invest these days buy gold or use the money to buy medical insurance.

I was presented with the same bullshit in Thai as a mandatory prerequisite to opening an account.I have never been presented with a more inferior financial product,that was without knowing what the other lads shared that the product does not actually pay for most deaths.The commission must be gaudy because the two women stuck to their guns and had my money walk.

Similar products exists worldwide - but a mix of health insurance and investment is never a good idea, as the risk of death has to be financed.

ETf's

It is an e

ENDOWMENT life insurance policy, That is why the cash value (if you surrender it) is less than what you have paid in at the start. It is a good way to save while protecting your dependants if you die prematurly. Endowment means it has a determined maturity, unlike a whole of life policy. There is nothing to be scared of.

Thais Change Rules every 10 minutes

Never invest in anything that you don’t understand

I would regret this.

Sense of

They just give you your own money back plus a tiny percent dividend? Why would anyone do this?

This is called VUL i think. mixed life insurance with investment.. Honestly a crappy kind of money drain. if you simply want returns for long term invest in index funds. and if you want life issurance go to the actual real companies not banks.

Quite insufficient; you invest 300’ after 14 years you are paid about 325’. If choose to terminate earlier after 6 years you loose roughly 50’. Ok you have a life insurance policy that eventually benefit your wife. It’s nothing to have. Compare with US corporate IG rate bonds where you easily can have 4-6% yearly. Thailand is not good for financial investments

These life insurance policies are quite common in many countries as an investment product. You don't buy them for the life insurance aspect. They basically deduct a premium every year as shown on the chart, and you get a guaranteed (and sometimes a non-guaranteed portion) return each year. For example, you might have a premium for 6 years, but after that, you hold onto the policy for 10 more years and it keeps paying you a return throughout the policy term but doesn't deduct additional premiums.

Don’t do it. Not worth it. Kasikorn did a similar thing. Better off investing in the S&P500.

I have a similar endowment policy. It's 8 years in my case. In my particular circumstances it's worth it as the tax savings are significant. If you're not earning a salary locally in Thailand then there are better investments like some of the other posts suggest. Better to get a simple policy which pays out if you want to look after your loved ones and invest the rest.

I was "invited" to one similar but with 1.200.000 annual payment for 9 years (I Think it was) with a total length of 20 years, as I believe I can invest my capital better I declined their offer :)

I recently did the math on a similar policy from SCB and if you just invested in the S&P 500 for the same time period you'd get 38x returns...

Its to Long my advise not more then 10 Years they have different Options they they to sell Long lasting First...If you have Like this they Not try to Block your Account 😉....other Banks have 5 Years 10 Years 15 Years and 20 Years

They are selling you this policy to make commission off of it. If you go through the entire application yourself (not let them checking the boxes) you will find that you likely have a pre existing condition that would prevent a proper payout of the insurance.

It is a way for them to use your money to invest and make a whole lot more than they are paying out to you.

Looks like whole life insurance. Basically an “investment” tool. Would not do it. Better open an investment account through your bank and monthly deposit in etf’s. And get a real “life insurance”. Recommended 10x annual income if you have spouse/kids.

As soon as you mention bangkok bank it's a red flag not heard any good reports about said bank kasikorn (who I'm with and a lot of people switch to seem better)

Don’t be a fool putting ur money in land of smiles

If it's BKK bank then Run

First question is do you pay Thai personal income Tax? If yes, this is something to consider. It is a life insurance policy. You pay in 50k premium each year. You get back the amount in the cash return column. The last column is the estimated tax benefit. In this case they are assuming a 20% tax rate. Based on a full deduction of a 100k (max) premium you would get a tax benefit of half that 5k. This tax benefit is only applicable to the years you pay the premium.

The policy is in effect for 14 years, even through you pay in premiums for 6 years. Other columns;

Life coverage is the amount your benefactor gets upon your death.

Cash value is what the policy is worth if you cash out early. If you do that you may have to give back to the government the deductions you took out. (I’m not sure of every detail of this)

Total benefit on surrender is just to show you the benefit you receive already. The total cash return + the surrender amount.

The rest of it is just different ways to calculate the value of the policy benefits to you.

Hope this helps.

Seems like the only way ones make much money is if you die in the first 5 years...

it is the worst way to invest your money ...

If they sold you this to open account, your were taken. Employee gets commission to sell.

Almost same as SCB where they’re trying to talk me into investing. I did show someone this and they told me it’s just a time deposit gimmicks, where you actually don’t earn 10-2-14 percent annually like what the bank said.

They tried selling me that after going back to Pattaya twice because they had frozen my account. I personally thought it was a ridiculous policy. I withdrew all my funds apart from 2K and deposited my money into the Kasikorn.

life insurance is rubbish for you, wife gets a benefit if you mysteriously die. Looks like you pay 300k then eventually get 300k back yippee, get them to explain it to you, looks like thai logic

You’re in the wrong country if you want sense

Buy gold

Invest in your own country