The Ministry of Finance’s Savings Bonds FY B.E. 2562 No.2 – Scripless

Subscriptions are available from May 17, 2019 to September 6, 2019
at Bangkok Bank branches, Bualuang mBanking, Bualuang iBanking and Bualuang ATMs.

Coupon Rates

5 years: Fixed Interest Rate 2.50% p.a.

10 years: Fixed Interest Rate 3.05% p.a.

Interest Payments: Twice a year on May 17 and November 17

Subscription Amount

The minimum subscription amount is 1,000 baht (1 unit). There is no maximum limit and no limit to the number of subscriptions.

Subscription Price

1,000 baht per unit, with increases in multiples of 1,000 baht

Eligible Entities

Individuals with Thai nationality or residency in Thailand, The Thai Red Cross Society, foundations, associations, temples, government educational institutions, government hospitals, and non-profit juristic persons

This is a scripless series of bonds and investors are required to register before subscription. Investors can register at Bangkok Bank branches. Investors who have already registered to buy the Ministry of Finance’s Savings Bonds with Bangkok Bank can use their existing registration number.

Additional Information

The Ministry of Finance’s Savings Bonds
Registration and Securities Depository

Before subscribing for the scripless savings bonds, new subscribers must register for depository of the bonds, and open a securities account at Bangkok Bank branches. The Bank will deposit customers’ bonds in accordance with the Bank’s securities depository account for customers at Thailand Securities Depository Co., Ltd. The name of the registered subscriber must be identical with the name of the owner of the deposit account set to receive interest and principal.

Required Documents

  • Citizen ID card (for individuals) or a document showing juristic person status, issued by a government agency (for juristic persons) and a certified true copy of such document.
  • A certified true copy of the first page of the Bangkok Bank deposit account passbook (except special saving deposit accounts and fixed deposit accounts) which is specified to receive interest and principal earned from the bonds. If a subscriber does not have a Bangkok Bank account, a new account will must be opened.

Subscription via Bualuang mBanking/Bualuang iBanking

  1. Register for bond holder numbers at Bangkok Bank branches
  2. Apply for Bualuang iBanking and Bualuang mBanking service
  3. Add bond holder number via Bualuang iBanking by logging on at https://ibanking.bangkokbank.com
  4. Subscribe for bonds via Bualuang iBanking or Bualuang mBanking

Subscription via Bualuang ATMs: Subscribers must first register for their bond holder numbers and provide details of their savings account numbers linked to their Bualuang ATM cards or Be1st Smart cards.

For subscriber applying for a new Be1st Smart card for the purpose of subscription for the scripless bonds, the Bank will waive the entry fee and the first year annual fee*.

*Conditions
  • Waiver of the entry fee and the first year annual fee applies only to the first Be1st Smart card that the subscriber obtained in order to subscribe for the scripless bonds.
  • For a subscriber who obtains a Be1st Smart card for the purpose of subscription for the scripless bonds, but does not make any subscriptions via an ATM within one year after applying for a Be1st Smart card, the Bank reserves the right to debit funds of an amount equal to the previously waived entry fee and the first year annual fee from the account linked to the card.
  • Be1st Smart Rabbit Siriraj / Be1st Smart TPN Rabbit Siriraj / Be1st Smart Rabbit Chelsea cards do not qualify for the waiver of the entry fee and the annual fee.
Subscriptions

Subscriptions are available at Bangkok Bank branches, Bualuang mBanking, Bualuang iBanking and Bualuang ATMs from May 17, 2019 at 8:30a.m. until September 6, 2019 at 3:00p.m.

Date on Savings Bonds (Interest Rate Calculation Date)

Subscription at Bangkok Bank branch counter

  • Pay by cash or funds transfer: Interest will be calculated from the subscription date. For subscriptions made after 3:00p.m. on working days, on weekends, or bank holidays, interest will be calculated from the next business day.
  • Pay by cheque: Interest will be calculated from the business day that the cheque clearing process is known to be successful.

Subscription via Bualuang mBanking, Bualuang iBanking or Bualuang ATMs

Interest will be calculated from the subscription date. For subscriptions made after 3:00p.m. on business days, on weekends, or on bank holidays, interest will be calculated from the next business day. For subscriptions made via Bualuang mBanking, Bualuang iBanking or Bualuang ATMs, the subscription amount cannot exceed the account balance of the subscriber, and the maximum limit set by the Ministry of Finance.

If subscribers have already purchased the bond, cancellations and refunds cannot be made.
Methods of Payment

Subscription at Bangkok Bank branch counter

  • Pay by cash or funds transfer
  • Pay by cheque
    • Payable to ‘Subscription A/C for Gov Bond 5 Years’ or ‘Subscription A/C for Gov Bond 10 Years’
    • The cheque must be dated not later than the day of the subscription (Subscriptions made on September 6, 2019 cannot be paid by cheque).
    • The cheque must be able to be cleared in the same clearing house area as the branch which collects the payment for the bond subscription.

Subscription via Bualuang mBanking/Bualuang iBanking: Funds are debited from the subscriber’s account when the transaction has been completed. Subscribers can check their transaction history as evidence of bond subscription payments..

Subscription at Bualuang ATMs: Funds are debited from the subscriber’s account when the transaction has been completed. Subscribers will receive their ATM slips as evidences for bond subscription payments.
Evidence received from Bond Subscriptions

Subscribers will receive their bond book showing details of their bonds. The bond book operates under the following terms and conditions:

  • Bond holders can use the bond book as a reference to make transaction.
  • Details in the bond book include the bond value on the date of registration and/or the bond's market value provided by Bangkok Bank on the transaction date.
  • Details in the bond book are considered correct only if they are identical with the details recorded with the Bank.
  • Details in the bond book include only scripless bonds, subscribed via Bangkok Bank.
  • Bond holders can update a bond book at Bangkok Bank branches and Passbook Update Machines.

Subscribers who used to subscribe for the scripless bonds issued by the Ministry of Finance and have obtained the bond book from Bangkok Bank can use such the bond book for subscription to the Ministry of Finance’s Savings Bonds FY B.E. 2562 No.2.
Method of Allotment
Bonds will be allotted on a first-come, first-served basis for subscribers who submit ‘Subscription Forms’ at Bangkok Bank branches or who subscribe via Bualuang mBanking, Bualuang iBanking or Bualuang ATMs and complete the subscription payment.
Change of Name, Address, Accounts to receive Interest and Principal
Bond holders must immediately notify Bangkok Bank of the changes.
Transactions after receiving Bond Subscriptions
Transactions relating to the bond can be made from November 17, 2019 onward, except for the inheritance transfer, or the division of assets due to divorce, bankruptcy or liquidation, or pledge of bonds as collateral which can be made 15 business days after the subscription date. Transfers and pledges/collateralization cannot be made during the 30 days period prior to the bond’s maturity date.

Rights Transfer

Rights transfers for scripless bonds can be made to new customers or existing customers who have subscribed at the same distribution bank. Transfers cannot be made between different distribution banks. To make a transfer, bond holders will need to bring their bond books when contacting the distribution bank which keeps their bonds.

Using Bonds as Collateral

Bond holders can use bonds as collateral for government offices and government organizations, such as using bonds as collateral to apply for court bail, electricity guarantee, or as collateral for financial institutions or other individuals, but subject to relevant regulations regarding the collateralization prescribed by each government office/organization, agency, financial institution or individual. In such cases, bond holders must contact Bangkok Bank to withdraw bonds from the scripless system.

Fees for Transactions after Bond Subscription

Bond holders can check the fees in the Fact Sheet of The Ministry of Finance’s Savings Bonds FY B.E. 2562 No.2.
Other Conditions
  • The Bank of Thailand, as a bond registrar, will transfer interest into the savings or current deposit account of bond holders who have deposited the bonds with Bangkok Bank as specified in the subscription form.
  • If the interest payment day falls on a bank holiday, the interest will be paid on the next business day.
  • The Bank of Thailand will deduct withholding tax from every interest payment as required by law. (Individuals are subject to withholding tax at a rate of 15% per annum.)
For more information, or to obtain a fact sheet, please contact Bangkok Bank branches, or call Bualuang Phone 1333.

Investors are strongly advised to study the product characteristics including the returns, conditions, and risks before deciding to invest.

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