I did this for two years, the money had to be paid into a Thai bank account from an account in your home country, once in your Thai bank could be withdrawn at your convenience and used as you like, had no problems at all.
I normally apply for mine 6 weeks before the expiration date in Chiang Mai, if I’m going to be away when it’s due I let them know and apply for renewal on return
Just received my yearly vis, but I am on a type O retirement visa, had to get letter from Bangkok bank head office listing all transfers in, a statement saying they were international transfers, they then copied every page of my bank book, cost 209 baht, 7 days later went back received documents, paid another 100 baht, and visa issued at Chiangmai immigration immediately, hope this helps