In my home country, if I deposit money in a bank, it is guaranteed by the government up to US$250,000. If I deposit money into a Thai bank, is it guaranteed? If so, up to what amount?
Saturday, June 1, 2013 8:39:42 AM
Money deposited in Thai banks is guaranteed by law as follows:
• Up to 50 million baht on all deposits from August 11, 2012 to August 10, 2015
• Up to 25 million baht on all deposits from August 11, 2015 to August 10, 2016
• Up to 1 million baht on all deposits from August 11, 2016 onwards
This coverage applies to 36 Thai banks as listed on the Deposit Protection Agency website (click here).
All deposits at the following state-owned banks are 100% guaranteed:
• Bank of Agriculture and Agricultural Co-operatives
• Government Savings Bank
• Government Housing Bank
• Islam Bank of Thailand
The remaining two state-owned banks in Thailand – the SME Development Bank and Export-Import Bank of Thailand (EXIM Bank) – are development banks that do not hold deposits.
The coverage for large deposits at the major savings banks is being slowly being reduced because the guarantee for large deposits was initially increased after the European financial crisis 2009 in order to boost investor confidence and to encourage investors to use Thai banking institutions.
Now with that behind us, the Thai government is returning the coverage to normal levels. Coverage is being removed for deposits of more than one million baht because, according to our statistics, 98.5 per cent of accounts at Thai banks have balances of less than one million baht.
The Bank of Thailand has chosen a policy of safeguarding the deposits of the average citizen instead of those who are much wealthier. We have chosen to protect the “little people” because they are the majority.
Any deposits exceeding the coverage amount list above can be claimed during the liquidation process.