ATMs With High Limits or Money Transfer Into Vietnam?

Diazo:  Are you sure that you are not confusing dividends and interest?  Interest is paid to depositors.   Dividends are paid to those who have already purchased common stock in the bank.    If stockholders receive stock in lieu of dividends they are still free to sell those stocks.  However, one effect may be that stock value is diluted.   It is sort of the opposite of stock buy-backs that are currently popular in the US as a way to drive up prices.

Travelfar wrote:

MikeTVN wrote:

Forgive my ignorance but can you tell me what the implications of this ability for them to give dividends and increase capitol? Seems to me more stability and less likely to fold?

Paying dividends by issuing stock does not result in any increase in a stock holder's value.  It does result in a decrease in the Net Asset Value (NAV) of the stock though.  As such, it is not recognized as a gain or a loss to the stock holder.

Retaining the profits does not affect the total value of the stock.  Paying dividends in cash reduces the value, and thus the NAV is decreased as a result.

Perhaps you misunderstood the article. The bank depositors deposited their money with the bank expecting to earn interest on their money. They were not stock holders. But because the bank does not have enough capital to pay the interest they are asking for government approval to issue stock in lieu of paying the interest. If that happens there is no assurance those stocks we pay a dividend. In fact I would bet money they will not pay a dividend....ever. In short, instead of getting the quarterly interest you expected they will issue you a virtually worthless piece of paper called a “stock”. Thus allowing the sinking ship to preserve much needed capital. Not that your assessment is wrong about NAV etc. But it is not really in play in regards to the man question. His was about banks folding. And they are getting ever closer.

THIGV wrote:

Diazo:  Are you sure that you are not confusing dividends and interest?  Interest is paid to depositors.   Dividends are paid to those who have already purchased common stock in the bank.    If stockholders receive stock in lieu of dividends they are still free to sell those stocks.  However, one effect may be that stock value is diluted.   It is sort of the opposite of stock buy-backs that are currently popular in the US as a way to drive up prices.

No, not confusing it at all. As a bank depositor you expect to get a yield on say your certificate of deposit. But in the situation we are speaking of the banks no longer have enough money “capitalization” To pay interest. So no they are wanting to just issue stock for what they owe you. Sounds great perhaps. They owe you for example $10 of interest. Today the stock of the bank is worth $10. So they issue you one share. Problem is the bank is worth nothing and is failing. Of course, you know that common stock holders have no  right to anything once the company is worthless. This is just one of the first signals of failure. I suspect here that depositors will have no choice between getting the interest they are owed or shares of a failing company. You will get shares. Maybe good for you all. But again back to the mans question....the risk of the ban folding is very high. The only question is will the government rescue them. And we are just in the first inning of the covid economic crisis. Stay tuned....

As a sidebar... just checked and VCB stopped dividend payments in Oct 2018. And even then it was only 1.15%. Typically with failing companies the first thing stopped  is the payment of dividends. So you got a one year CD at VietCom bank expecting a 7% interest rate. Now they say we are not goin to pay you that. Instead we will give you a piece of paper that will pay you nothing. And oh BTW that piece of paper may soon be worthless. Happy investing.

Diazo wrote:

THIGV wrote:

Diazo:  Are you sure that you are not confusing dividends and interest?  Interest is paid to depositors.   Dividends are paid to those who have already purchased common stock in the bank.    If stockholders receive stock in lieu of dividends they are still free to sell those stocks.  However, one effect may be that stock value is diluted.   It is sort of the opposite of stock buy-backs that are currently popular in the US as a way to drive up prices.

No, not confusing it at all. As a bank depositor you expect to get a yield on say your certificate of deposit. But in the situation we are speaking of the banks no longer have enough money “capitalization” To pay interest. So no they are wanting to just issue stock for what they owe you. Sounds great perhaps. They owe you for example $10 of interest. Today the stock of the bank is worth $10. So they issue you one share. Problem is the bank is worth nothing and is failing. Of course, you know that common stock holders have no  right to anything once the company is worthless. This is just one of the first signals of failure. I suspect here that depositors will have no choice between getting the interest they are owed or shares of a failing company. You will get shares. Maybe good for you all. But again back to the mans question....the risk of the ban folding is very high. The only question is will the government rescue them. And we are just in the first inning of the covid economic crisis. Stay tuned....

THIGV is correct.  Dividends are paid to STOCKHOLDERS.  Interest is paid to DEPOSITORS. 
And if you wish to continue this discussion, I think a new thread is appropriate.

I was not suggesting THIGV was wrong. Indeed, that is correct. But not the issue at hand. Feel free to start a new thread if you wish. I was addressing the content of this thread. In particular the issue of banks folding.

Sorry I stand corrected. I misread the “ bank” article referenced. It was my misread that lead me to think they were wanting to exchange common stock instead of paying depositors the interested owed on time deposits. In fact the banks were asking for approval to issue additional stock instead of paying dividends.
Does not change the fact that banks here are insolvent and the risk of going under is very high. I suppose the only hope that they do not is that they are primarily owned by the government.

A previous poster said that deposit insurance in VN was $20,000 per account. The maximum insurance payable to a depositor in an insured organisation will be raised from VNĐ50 million to VNĐ75 million (US$3,289)starting in August.

Diazo wrote:

A previous poster said that deposit insurance in VN was $20,000 per account. The maximum insurance payable to a depositor in an insured organisation will be raised from VNĐ50 million to VNĐ75 million (US$3,289)starting in August.

Yup, thats my advice from Sacombank too, 75mil & only on VND account.

Diazo wrote:

A previous poster said that deposit insurance in VN was $20,000 per account. The maximum insurance payable to a depositor in an insured organisation will be raised from VNĐ50 million to VNĐ75 million (US$3,289)starting in August.

That was probably me.  I think I said $12,000 but in either case I was still way off.  Thanks for clarifying that.

My bad. You did say 12. Thanks for being so gracious.

Schwab Bank has decreased their wire transfer fee from $25.00 to $15.00.

I started sending some USD to my ACB USD account about a year ago.

The transfer fee has always been $25.00 (normally I send $2,000.00)

Today I sent a wire but the fee was only $15.00

Schwab has been getting very aggressive in lowering commissions and fees.

I'd guess this an attempt to keep business from going to Transferwise, etc.

OceanBeach92107 wrote:

Schwab Bank has decreased their wire transfer fee from $25.00 to $15.00.

I started sending some USD to my ACB USD account about a year ago.

The transfer fee has always been $25.00 (normally I send $2,000.00)

Today I sent a wire but the fee was only $15.00

Schwab has been getting very aggressive in lowering commissions and fees.

I'd guess this an attempt to keep business from going to Transferwise, etc.

with my Schwab account wire transfer Schwab usd to Sacombank usd is free!

goodolboy wrote:

OceanBeach92107 wrote:

Schwab Bank has decreased their wire transfer fee from $25.00 to $15.00.

I started sending some USD to my ACB USD account about a year ago.

The transfer fee has always been $25.00 (normally I send $2,000.00)

Today I sent a wire but the fee was only $15.00

Schwab has been getting very aggressive in lowering commissions and fees.

I'd guess this an attempt to keep business from going to Transferwise, etc.

with my Schwab account wire transfer Schwab usd to Sacombank usd is free!

Perhaps it would be helpful for you to elaborate that you don't have the standard account but you have a special account (International?) or a high balance account?

I'm talking about the Schwab One account (brokerage with checking) anyone in the USA can open with $100.00

OceanBeach92107 wrote:

I'm talking about the Schwab One account (brokerage with checking) anyone in the USA can open with $100.00

Or $1 in our case.  That's all they asked, and that's all we gave them.  Plus the proof for direct deposit to the checking account, of course.  The balance on the brokerage account is still $1 as of today.

OceanBeach92107 wrote:

goodolboy wrote:

OceanBeach92107 wrote:

Schwab Bank has decreased their wire transfer fee from $25.00 to $15.00.

I started sending some USD to my ACB USD account about a year ago.

The transfer fee has always been $25.00 (normally I send $2,000.00)

Today I sent a wire but the fee was only $15.00

Schwab has been getting very aggressive in lowering commissions and fees.

I'd guess this an attempt to keep business from going to Transferwise, etc.

with my Schwab account wire transfer Schwab usd to Sacombank usd is free!

Perhaps it would be helpful for you to elaborate that you don't have the standard account but you have a special account (International?) or a high balance account?

I'm talking about the Schwab One account (brokerage with checking) anyone in the USA can open with $100.00

Not special just Schwab 1 brokerage with checking.

Ciambella wrote:

OceanBeach92107 wrote:

I'm talking about the Schwab One account (brokerage with checking) anyone in the USA can open with $100.00

Or $1 in our case.  That's all they asked, and that's all we gave them.  Plus the proof for direct deposit to the checking account, of course.  The balance on the brokerage account is still $1 as of today.

Is that a typo, should it not be $1,000,000 as of today.

goodolboy wrote:

OceanBeach92107 wrote:

goodolboy wrote:

with my Schwab account wire transfer Schwab usd to Sacombank usd is free!

Perhaps it would be helpful for you to elaborate that you don't have the standard account but you have a special account (International?) or a high balance account?

I'm talking about the Schwab One account (brokerage with checking) anyone in the USA can open with $100.00

Not special just Schwab 1 brokerage with checking.

I don't know why you're making me drag this out of you.

It's clear from all the documentation on Schwab's accounts that the charges are the same, except on International accounts or high-balance accounts.

Unless of course you've got some amazing balance in your account and you've got some special deal with them.

I'm trying to leave information here that applies to the greatest number of people who will read this thread.

So when you drop that little bit of information, it would probably be helpful to a future reader for you to be clear about what makes your account special and why you don't have to pay and why I do.

Thanks for being helpful.

OceanBeach92107 wrote:

Schwab has been getting very aggressive in lowering commissions and fees..

It's not really part of the transfer situation but as an example of their corporate aggressiveness, Schwab recently bought out their major discount brokerage competitor, TD Ameritrade.  Of course if they eliminate all the competition, fees could go the other way.

OceanBeach92107 wrote:

goodolboy wrote:

OceanBeach92107 wrote:

Perhaps it would be helpful for you to elaborate that you don't have the standard account but you have a special account (International?) or a high balance account?

I'm talking about the Schwab One account (brokerage with checking) anyone in the USA can open with $100.00

Not special just Schwab 1 brokerage with checking.

I don't know why you're making me drag this out of you.

It's clear from all the documentation on Schwab's accounts that the charges are the same, except on International accounts or high-balance accounts.

Unless of course you've got some amazing balance in your account and you've got some special deal with them.

I'm trying to leave information here that applies to the greatest number of people who will read this thread.

So when you drop that little bit of information, it would probably be helpful to a future reader for you to be clear about what makes your account special and why you don't have to pay and why I do.

Thanks for being helpful.

Schwab Bank has decreased their wire transfer fee from $25.00 to $15.00.

I started sending some USD to my ACB USD account about a year ago.

The transfer fee has always been $25.00 (normally I send $2,000.00)

Today I sent a wire but the fee was only $15.00

You made this statement & I merely stated that what you stated is not true in my case & I suppose others too, so you should not generalize & think everyone is (1) American & (2) in the same financial bracket as yourself.

Not too difficult to figure out that I am a UK citizen with a Schwab 1 account in USD so International.

Suppose it would make sense as far as Schwab is concerned that an account with a 4 figure balance would have to pay a fee for wire transfer & an account with say a 7 figure sum in it (stocks & cash)  would get wire transfers free.
So for all us financially secure non US citizens on the Forum with access to Schwab through Hong Kong, London & Birmingham I will tell you some benefits to having a Schwab 1 account.
1........your cash is held in USD account in the US & therefor is covered by US banking protection laws 250kusd stocks & 250kusd cash.
2........You will have a Schwab debit card that you can use at any ATM here in Vietnam or world wide & Schwab will refund the ATM charge & the exchange rate they give USD to VND is competitive.
3........Schwab will transfer  USD to USD to any bank world wide with no transfer fee (if you have enough in your account to qualify) or 15usd per transaction if your account does not qualify.
4.........If you trade on the US markets there is no trading fee & because you are non US citizen providing you fill in the form W8BEN & your country has a treaty with the US you will be taxed at 20% (tax withholding) on dividends & nothing on stock share gains  (if you are lucky to have them when you sell)

Hope that covers it for all us non US citizens which believe it or not OB there are many

goodolboy wrote:

Hope that covers it for all us non US citizens which believe it or not OB there are many

Ha...Ha...Ha...

And yet I did have to drag it out of you.

In spite of what some forum members think, the average reader almost certainly doesn't click on avatars to check the nationality of a poster.

You know and I know you could have easily given pertinent context to your first reply by simply adding the adjective "international" to your reply.

Or you could have then added all the really good info you eventually shared about an international account.

But that wouldn't be as much fun, eh?

OceanBeach92107 wrote:

goodolboy wrote:

Hope that covers it for all us non US citizens which believe it or not OB there are many

Ha...Ha...Ha...

And yet I did have to drag it out of you.

In spite of what some forum members think, the average reader almost certainly doesn't click on avatars to check the nationality of a poster.

You know and I know you could have easily given pertinent context to your first reply by simply adding the adjective "international" to your reply.

Or you could have then added all the really good info you eventually shared about an international account.

But that wouldn't be as much fun, eh?

I surrender

All must surrender to the tsunami on Ocean Beach. 

gobot wrote:

All must surrender to the tsunami on Ocean Beach. 

Just playful stuff with a worthy adversary.

He knew that I knew that he knew what he was doing...

I have to go to Vietcombank monthly to deposit money to my landlord's account for rent.  I asked them if it was possible for me to open an account there so I could take advantage of their app to send the money, and they told me I could if I transferred money from a US bank -- no cash deposits allowed.  The transfer will cost a fee, but it might be worth it to just make one big deposit for a year's rent, so I will apply next week when I get my passport back from extending my visa. 

Does anyone know if what I was told is correct and if there may be any gotchas?  Currently I go to the ATM and withdraw the money (no fee), then go to the bank, wait my turn and  deposit the money with a 11.000 dong fee.  Usually 45 minutes or more for the whole process.

paulmsn wrote:

I have to go to Vietcombank monthly to deposit money to my landlord's account for rent.  I asked them if it was possible for me to open an account there so I could take advantage of their app to send the money, and they told me I could if I transferred money from a US bank -- no cash deposits allowed.

Does anyone know if what I was told is correct ...

Yes, it is correct.  You cannot deposit cash to your account without an identifiable source.

People have recommended other methods of transferring money within the country.  I've never used them but if you wait for a few minutes, I'm sure someone would come by with the advice.

Ciambella wrote:

paulmsn wrote:

I have to go to Vietcombank monthly to deposit money to my landlord's account for rent.

Yes, it is correct.  You cannot deposit cash to your account without an identifiable source.

I was never a direct party to the transactions but my wife every month paid our rent by directly depositing cash (VND) in our landlord's account at DongA.  My brother-in-law also repaid a substantial loan to us with several deposits over time at Citibank, while making the physical deposits at Agribank in Ben Tre.  Does the rule about not depositing cash only apply to foreigners?

THIGV wrote:

Does the rule about not depositing cash only apply to foreigners?

Yes.  My company here cannot deposit money in my account.  (There has to be a way to do this but I haven't figured out how yet.)  I cannot get a cash disbursement and deposit cash in my account.  I can receive cash disbursements from my company, hand it to my wife and she can deposit it in her accout without any questions.  Finally, I just found out that my company, while not being able to deposit my own money in my own account can somehow direct deposit my money into my wife's account.   So, that's what we are going to do when we leave.  Whatever...their country, their (screwed up) rules.

SteinNebraska wrote:

THIGV wrote:

Does the rule about not depositing cash only apply to foreigners?

Yes.  My company here cannot deposit money in my account.  (There has to be a way to do this but I haven't figured out how yet.)  I cannot get a cash disbursement and deposit cash in my account.  I can receive cash disbursements from my company, hand it to my wife and she can deposit it in her accout without any questions.  Finally, I just found out that my company, while not being able to deposit my own money in my own account can somehow direct deposit my money into my wife's account.   So, that's what we are going to do when we leave.  Whatever...their country, their (screwed up) rules.

Meanwhile, govt officials and the wealthy are moving money out of VN in the millions. Let's not worry about that, make the rules for foreigners difficult just because we can.

THIGV wrote:

Ciambella wrote:

paulmsn wrote:

I have to go to Vietcombank monthly to deposit money to my landlord's account for rent.

Yes, it is correct.  You cannot deposit cash to your account without an identifiable source.

I was never a direct party to the transactions but my wife every month paid our rent by directly depositing cash (VND) in our landlord's account at DongA.  My brother-in-law also repaid a substantial loan to us with several deposits over time at Citibank, while making the physical deposits at Agribank in Ben Tre.  Does the rule about not depositing cash only apply to foreigners?

I think it does, I am with the other expat posters, I cant deposit cash at Sacombank. Suppose its cos they think all foreigners are money laundering crooks. I have one question though & its just as a matter of interest, why would a foreigner even have cash they would want to deposit in their bank here in the first place? If its like a salary why not just get the salary paid into their account & then use on line banking to do any transfers etc. Or could it be money earned (as the Vietnamese say) "on the Black"

Going back to the original topic, I use TPBank ATMs with a Mastercard debit card linked to my Capital One checking account.  I can withdraw 10.000.000 dong with no fees.  I haven't tried a higher amount.

mtgmike wrote:

I initiated a Transferwise transfer to my wife's account.  Within 30 minutes she got a notification that the money was deposited into her account.  It took 1-2 hours for the transfers I tried to send to myself to bounce back to me.  There are no records of any transactions listed for my account.  I'll try sending to my account again.  Both of us have separate Vietcombank VND accounts.  Maybe there is a restriction on my account as a foreigner.

Transferwise has a workaround. See this post:

https://www.expat.com/forum/viewtopic.p … 70#5002295

It involved letting payment to bounce back, not cancelling the returned  transfer, then contacting transferwise support for manual routing.