1. What makes these Savings Bonds so attractive compared to fixed deposit?
Savings Bonds are issued by the Ministry of Finance (MOF) with the Bank of Thailand (BOT) acting as a registrar. The bonds are therefore regarded as a secure investment that investors will receive the full amount of principal at the maturity date, plus the fixed interest rate payment, semi-annually. Bondholders may also find that the interest rate that Savings Bonds provide is higher than the fixed interest rate of bank deposits.
2. What are the benefits of scripless Savings Bonds?
Firstly, bondholders have no burden on storage. Secondly, at the maturity date, bondholders will automatically receive principal transferred to their bank account without having to return the bond certificate to the BOT.
3. What can be used as the proof of purchases for the scripless Savings Bonds?
Listed below is considered the proof of purchase to confirm a successful transaction.
3.1 The bank counter: bondholders will get a confirmation of bond purchase.
3.2 ATM: bondholders will get a receipt or ATM’s slip.
3.3 Internet Banking or Mobile Application: bondholders will be informed of successful transactions on the screen when the payment is completed.
- The new bondholders will receive the Minister of Finance bond book at the time of the transaction or within fifteen (15) working days of the date of transactions, which provides details of the purchasing transaction. For bondholders who already have the bond book, they can update their bond book after fifteen (15) working days. The details in the bond book will be shown at the par value of the registered date and at the market value of any agent bank on the transaction date. Once the transactions appeared in bond book and in the bank system are the same, the transaction is recognized as accurate. The transaction details display only for scripless Savings Bonds purchased from the agent banks from FY2555 to date and can be updated only through the agent bank which the Savings Bond was purchased. The principal payment will be at the par value on the redemption date.
6. Why investors who buy the same series of Savings Bonds receive the first amount of interest payment differently?
Since the subscription date of each investor is different, the first amount of interest payment is calculated differently for each investor. The time period used for the first interest payment calculation begins from subscription date to the date before the first amount of interest must be paid. For example
- Mr. A bought 10 Years Savings Bonds of ฿500,000 in cash on May 18th, 2020. The first interest payment will be on November 14th, 2020. The time period to calculate the interest payment is from May 18th, 2020 to November 13th, 2020 which is 180 days.
- Mr. A bought 10 Years Savings Bonds of ฿500,000 in cash on June 8th, 2020. The first interest payment will be on November 14th, 2020. The time period to calculate the interest payment is from June 8th, 2020 to November 13th, 2020 which is 159 days.
For the next period of interest payment, the time period to calculate the interest payment of Mr. A and Mr. B will be exactly the same.
7. How to claim the personal income tax refund?
Bondholders are eligible to claim the refund of personal income tax deducted from interest payment by filing their withholding tax certificate issued by the BOT if their tax rate of net annual personal income is less than 15%.
8. Is there any fee for interest or principal transfer to bondholders’ accounts?
Interest and principal will be paid automatically into bondholders’ savings accounts and there is no fee for such a transfer.
9. Is it possible to receive the interest or principal payments paid by cash or cheque?
No, the Bank of Thailand will automatically transfer the interest and principal payments to bondholders’ savings accounts only (except for the special savings account and fixed deposit account).
10. Which channels should be used to inform of personal information changes such as name, family name, title, address, interest or principal receiving account etc.?
For scripless Savings Bonds,
Please contact the selling agent banks and bring bond book and other documents that can be a reference for editing your profile.
For scrip Savings Bonds,
Please directly contact the Bank of Thailand, either head office or regional offices, to process further actions.
16. How to redeem the Savings Bonds when they reach maturity?
For scripless Savings Bonds, the BOT will repay principal into the bondholder’s savings account according to the name list and information received from the TSD on the last working days, 30 days before the redemption date.
For scrip Savings Bonds, the BOT will send a principal redemption form to the bondholders before the maturity date and will repay principal after receiving the bond certificate from the bondholders.
The Savings Bonds redemption documents are comprised of:
(1) The filled principal redemption form with signature as registered with the BOT
(2) The original matured scrip Savings Bonds
(3) A certified copy of the first page of the savings account of the bondholder
(4) In case of individuals, please attach a certified copy of Thai national ID card
In case of Juristic Person, attach a certified copy of juristic person certificate issued by the Ministry of Commerce, or a certified copy of registration certificate of establishment, the latest annual meeting report of the association/ foundation/ cooperatives, etc. and a certified copy of the authorized person’s national ID card.
In case of Savings Bonds Redemption for Minors
• Minors aged under 15: their parents or a registered authorized person must sign the principal redemption form, and enclose a certified copy of registered address or a certified copy of birth certificate, a certified copy of the minors’ ID card, and a certified copy of the parents’ or a registered authorized persons’ ID card, herewith.
• Minors aged between 15-20: minors and their parents or a registered authorized person must co-sign the principal redemption form and attach a certified copy of the minors’ ID card, and a certified copy of the parents’ or a registered authorized persons’ ID card, herewith.
• Persons aged of 20: it is acceptable to refrain from informing the BOT that minors have reached legal age before Savings Bonds will reach maturity. However, Savings Bonds’ principal must be transferred only to the minor child’s bank account, stated in the principal redemption form and the parents or a registered authorized person must have their signatures as the bondholders and enclose a certified copy of the minors’ ID card, and a certified copy of the parents’ or a registered authorized persons’ ID card, herewith.
17. How to transfer the ownership of Savings Bonds to descendants of bondholders who have passed away?
For scripless Savings Bonds, the executer or the administrator of the estate should contact the agent banks and request for estate administration.
For scrip Savings Bonds, the executer or the administrator of the estate should contact the BOT and file a request for estate administration referring to the BOT terms and conditions.
9. ถ้ามีความประสงค์จะเปลี่ยนพันธบัตรจากแบบไร้ใบตราสาร (Scripless) ให้เป็นแบบมีใบตราสาร (Scrip) ทำได้หรือไม่