Table of bank and MFI deposit rates?
I'm going to open a visionfund account in my wife's name next week. As part of their promotion they offer free (and very basic) health and life insurance to Khmers (can't find the link at the mo, sorry)
I've always found AMK to be very hit and miss with their processing speeds. A couple of the girls at head office can be super fast: other few can be slow.
HKL I've found to be the most difficult: reluctant to open an account for a foreigner, and NO English spoken in the Mao Tse Tung branch office I went to...they did it eventually but did it wrong and had to drive around to meet me at home in the afternoon to get me to sign some extra documents as they'd filled in my details in Khmer and not English. Total time I'd guess was 2 hours contact!
I've always found AMK to be very hit and miss with their processing speeds. A couple of the girls at head office can be super fast: other few can be slow.
HKL I've found to be the most difficult: reluctant to open an account for a foreigner, and NO English spoken in the Mao Tse Tung branch office I went to...they did it eventually but did it wrong and had to drive around to meet me at home in the afternoon to get me to sign some extra documents as they'd filled in my details in Khmer and not English. Total time I'd guess was 2 hours contact!
Could you negotiate with them about the interest rates with them?walkjivefly wrote:MFI account opening experiences
I have recently opened term deposit accounts with 4 Cambodian MFIs. I chose 3-month Khmer Riel accounts with interest paid monthly just to see how they work. Others may find these observations helpful.
1. Kredit
Account opening time: about 40 minutes from walking in to walking out with a savings account passbook and deposit certificate. This was by far the quickest.
The girl on reception spoke reasonable enough English to understand what I wanted and to complete the process without reference to anyone else. My passport and lease were scrutinised, relevant pages photocopied, forms were filled (requiring about a dozen signatures) and photos were taken. My not having a job here was a talking point. I handed over US dollars and got a Riel savings account and term deposit certificate at a 4028 exchange rate.
2. AMK
Account opening time: about 90 minutes from walking in to walking out with a savings account ATM card and deposit certificate. By far the slowest process.
The girl behind the glass obviously thought she'd drawn the short straw having to deal with a barang. It took a bit of pointing at a rates leaflet to explain what I wanted. Her level of English was minimal but still better than my Khmer. Passport and lease scrutinisation and copying took a lifetime, and filling in the application forms even longer. Photos were taken. Not having an occupation was a perplexing concept but we got over it. Again I opened Riel denominated accounts using dollars, the exchange rate was 4030. 80 minutes after walking in to the branch I was handed a deposit certificate but nothing for the savings account. With a bit of prodding the girl remembered she needed to do that too. She asked if I wanted a passbook or ATM card. I asked for a passbook but was given an ATM card. It would have been too painful to pursue the matter further.
3. Sathapana
Account opening time: about 60 minutes from walking in to walking out with a savings account passbook and deposit certificate.
The girl on reception understood what I wanted and passed me off to someone else to process in a private room. The process was the same and the exchange rate was 4030. After about 45 minutes she passed me off to one of the counter staff who fiddled around with the application forms, took my photo and eventually produced the passbook and certificate.
A month later they called and asked me to go back and have my photo taken. It was easier to comply than point out they'd done that once already.
4. Vision Fund
Account opening time: about 60 minutes from walking in to walking out with a savings account passbook and deposit certificate.
The girl on reception understood what I wanted and spent about 45 minutes on the form filling etc. She was quite chatty and her assistant did most of the passport and lease copying. She passed me off to one of the counter staff for a while who then passed me back to reception who gave me the passbook and certificate. The exchange rate was only 3990 so for a large deposit you'd be better off taking in actual Riel.
5. Prasac
Refused to open an account because I'm not employed. The girl on reception said it was a recently introduced restriction. It may have been a branch restriction; I haven't called their head office and asked them about it (yet).
There's not much else to do while watching them process the application so I can also report that Kredit had the prettiest (and most efficient) staff.
I've revisited Kredit and Sathapana and got them to update the passbooks with the first month of interest. It was a 5 minute task in both cases. Returning to AMK unnecessarily seems like an ordeal best avoided. The Vision Fund account hasn't been open a month yet.
And could you ask for the Cambodian residential tax calculated on the interest paid to you? Or the 14% non-residential tax?
I want to deposit some money with Kredit and Prasac.
But I want to open a deposit (6 or 12 months fixed) account in US$ and not in Riel. Most of the MFI 12 months fixed deposit accounts in US$ offer 7-8 %
I also read some positives about www.sathapana.com.kh.
It seems they were just bought by the Japanese Maruhan bank.
I find it difficult to find which of these institutions is the best, easiest,....
I thought wacky just told you who is the best (Kredit) and worse (AMK)?
Unless you're investing a substantial amount ($100k)/I doubt you'll get a higher rate, no matter what people have claimed.
Interesting about Prasac only opening an account to employed people. I've had money there for 18 months and its up for renewal in two weeks.
Bit odd as I thought they want expat retirees cash?
You will get given 6% rate by some (Prasac) will insist you've already been here for six months before you open an account. Again, depends what branch.
The reason why everyone has such a hit or miss experience with many MFI's and banks is because of the high turnover of staff and the fact they employ 2nd year up banking students, some just doing banking marketing. English is taught but minimally.
You will get a higher ℅ in reil but most are scared off because of a belief that their money is safer in USD, even though its in the same institution as reil would be!
Unless you're investing a substantial amount ($100k)/I doubt you'll get a higher rate, no matter what people have claimed.
Interesting about Prasac only opening an account to employed people. I've had money there for 18 months and its up for renewal in two weeks.
Bit odd as I thought they want expat retirees cash?
You will get given 6% rate by some (Prasac) will insist you've already been here for six months before you open an account. Again, depends what branch.
The reason why everyone has such a hit or miss experience with many MFI's and banks is because of the high turnover of staff and the fact they employ 2nd year up banking students, some just doing banking marketing. English is taught but minimally.
You will get a higher ℅ in reil but most are scared off because of a belief that their money is safer in USD, even though its in the same institution as reil would be!
pew, pew, pew, pew!
VisionFund are running a 'Top Up' promo at the moment.
https://www.visionfund.com.kh/top-up-promotion-1
Rates upto 12% (for 3 year term), free (very basic) life and health insurance (Khmer nationals only, but good for those with a Khmer partner) and 'top up money' of 120,000 to 3 million riel depending on the amount deposited.
Good deal.
https://www.visionfund.com.kh/top-up-promotion-1
Rates upto 12% (for 3 year term), free (very basic) life and health insurance (Khmer nationals only, but good for those with a Khmer partner) and 'top up money' of 120,000 to 3 million riel depending on the amount deposited.
Good deal.
agreed,You will get a higher ℅ in reil but most are scared off because of a belief that their money is safer in USD, even though its in the same institution as reil would be!
But after 12 months I will change the US$ interest to Thai Bath because I live most of the year in Thailand.
and I expect to get more Thai bath for my US$ than for Cambodian Riel in the next 12-18 months.
And I am also afraid of a devaluation of the Cambodian Riel. (How many devaluations had the Vietnamese dong?)
US$ seems safer to me.
Not sure about this, but who is?
Do you have better advice?
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Why not invest the funds simply into a Thai currency account. Most of these MFI's have them at rates higher than the USD but lower than KHR rate. Then you have no currency risk.
The USD isn't used as widely in Vietnam as it is in Cambodia, where most big deals are done in USD, and unlike the Dong the Riel is pegged against the dollar, which is why the fluctuations are miniscule.steevee wrote:agreed,You will get a higher ℅ in reil but most are scared off because of a belief that their money is safer in USD, even though its in the same institution as reil would be!
But after 12 months I will change the US$ interest to Thai Bath because I live most of the year in Thailand.
and I expect to get more Thai bath for my US$ than for Cambodian Riel in the next 12-18 months.
And I am also afraid of a devaluation of the Cambodian Riel. (How many devaluations had the Vietnamese dong?)
US$ seems safer to me.
Not sure about this, but who is?
Do you have better advice?
Just because the west were fucled up by banks dies not mean it'll happen here or anywhere else, apart from the west!
pew, pew, pew, pew!
Not a bad idea indeed, Thanks for the info.alanclarke72 wrote:Why not invest the funds simply into a Thai currency account. Most of these MFI's have them at rates higher than the USD but lower than KHR rate. Then you have no currency risk.
but I noticed that most of the IMF's will only open funds in Thai Bath in offices close to the Thai border.
And I also opened already a savings account (US$ en Riel with ATM card) with Canadia bank in PP.
But I will certainly check the interest rates from different MFI's in Thai currencies.
By the way, do normal Cambodian banks, not only MFI's also allow fixed saving accounts (with high interest rates) in Thai bath in Cambodia?
Vision fund for example:
Note: - Thai Baht currency is available in all branches office in Battambang, Banteay Meanchey, Pailin province and Head Office only.
The interest rate difference reflects the added risk of holding Riel over USD. The National Bank of Cambodia has indeed pegged the Riel to the USD and has devalued the currency in line with the devaluation of the USD since 2008 due to the quantitative easing program carried out in the US. Now that QE has ended in the US it will become harder to maintain the 4000 Riel peg especially if the country suffers a financial hiccup say from some natural disaster such as a drought wiping out the rice crop. Oh wait a minute....YaTingPom wrote:You will get a higher ℅ in reil but most are scared off because of a belief that their money is safer in USD, even though its in the same institution as reil would be!
That said, I think the 4000 peg will be maintained for the foreseeable future at least up until the election even if the USD starts to appreciate significantly.
I'm not so sure they pay a higher rate because the risk factor. Risk to whom exactly?
I thought they pay a higher rate because the NCB want people to hold riel?
Hey, I'm no finance wizard but there you go.
I thought they pay a higher rate because the NCB want people to hold riel?
Hey, I'm no finance wizard but there you go.
pew, pew, pew, pew!
Risk to the people choosing to hold Riel instead of USD in case the government needs to devalue the Riel.YaTingPom wrote:I'm not so sure they pay a higher rate because the risk factor. Risk to whom exactly?
I thought they pay a higher rate because the NCB want people to hold riel?
I remember the British government being forced to devalue the Pound by about 25% in 1992. I was backpacking around with half my money in GBP traveller's cheques and the other half in USD so I didn't know whether to laugh or cry.
Neither am I, else I would be sunning myself in the Bahamas instead of on the Cambodian Riviera.YaTingPom wrote:Hey, I'm no finance wizard but there you go.
That's because the UK left the ERM and combined with the recession it dropped in value against the DM, as did a lot of other weaker euro currencies, punt, lira, gilder, peso etc.
Can't say I remember it being a crisis whilst in Thailand. Maybe the rate was unchanged.
Can't say I remember it being a crisis whilst in Thailand. Maybe the rate was unchanged.
pew, pew, pew, pew!
Just watch what will happen to Thai baht when their king dies.steevee wrote:Not a bad idea indeed, Thanks for the info.alanclarke72 wrote:Why not invest the funds simply into a Thai currency account. Most of these MFI's have them at rates higher than the USD but lower than KHR rate. Then you have no currency risk.
but I noticed that most of the IMF's will only open funds in Thai Bath in offices close to the Thai border.
And I also opened already a savings account (US$ en Riel with ATM card) with Canadia bank in PP.
But I will certainly check the interest rates from different MFI's in Thai currencies.
By the way, do normal Cambodian banks, not only MFI's also allow fixed saving accounts (with high interest rates) in Thai bath in Cambodia?
Vision fund for example:
Note: - Thai Baht currency is available in all branches office in Battambang, Banteay Meanchey, Pailin province and Head Office only.
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Um... Really? Higher rates for Baht? My bank offers significantly LOWER rates for Thai Baht fixed terms.alanclarke72 wrote:Why not invest the funds simply into a Thai currency account. Most of these MFI's have them at rates higher than the USD but lower than KHR rate. Then you have no currency risk.
Anyone who doesn't like Capitalism is a pathetic loser. God bless the USA and no place else.
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