For individuals and families across Thailand, deciding where to place your savings often comes down to two primary choices: a traditional bank savings account or a savings insurance plan. While both aim to grow and protect your money, they operate very differently. A savings account may seem simple and accessible, but savings insurance provides benefits that go beyond just storing funds.

Which one aligns best with your goals? This guide will compare savings accounts and savings insurance plans in the Thai financial landscape, examining how each stacks up in terms of safety, access, and long-term growth. Let’s explore which option—or combination—is right for your financial future.

Understanding the Basics in Thailand

Traditional Bank Savings Accounts

A savings account with a Thai bank (e.g., Bangkok Bank, SCB, KBank) allows you to store your money securely while earning minimal interest. It’s great for daily needs, emergencies, and short-term savings. In Thailand, bank deposits are insured up to THB 1 million per depositor per institution under the Deposit Protection Agency (DPA).

Savings Insurance Plans (ประกันออมทรัพย์)

Known in Thailand as endowment policies or investment-linked insurance plans (ILPs), savings insurance offers both financial growth and life protection. You make regular contributions for a fixed period, and the policy pays out a lump sum upon maturity or in the event of death or critical illness. These plans are regulated by the Office of Insurance Commission (OIC).

Growth Comparison

CriteriaBank Savings AccountSavings InsuranceInterest Rate~0.25%–1.0% p.a. (as of 2025)2%–4% guaranteed, potentially higher with ILPsCompoundingYes, but slowYes – with tax advantages and forced savings disciplineAccess to FundsAnytimeLimited; partial withdrawals or policy loans onlyReturn PredictabilityHigh but very lowModerate to high, depending on policy type

When to Use Which in Thailand?

✅ Choose a Bank Account if:

• You need an emergency fund or instant access to cash.
• You’re saving for a short-term goal (travel, small purchases, etc.).
• You prefer no commitment or fees for accessing your funds.

✅ Choose Savings Insurance if:

• You have medium to long-term goals (education, home deposit, retirement).
• You want disciplined savings with insurance protection.
• You need a guaranteed payout at a future date.
• You want to protect your loved ones with life or critical illness coverage.

🇹🇭 The Hybrid Strategy for Thai Savers

Most Thai financial advisors recommend using both:

• Use your bank account for day-to-day expenses and emergency savings (3–6 months of income).
• Use savings insurance to build wealth, prepare for future milestones, and protect your family.

This balanced strategy ensures you have liquidity for today and security + growth for tomorrow.

Conclusion

Choosing between a bank account and savings insurance in Thailand depends on your goals, timeline, and need for protection. While banks offer convenience and liquidity, savings insurance plans go the extra mile by providing long-term growth and life protection.

Take Action

Don't choose between safety and growth—get both. Talk to a licensed financial advisor to help tailor the right combination based on your needs. To explore savings insurance plans in Thailand designed for your goals, visit www.allianz.co.th.

Frequently Asked Questions – Thailand Edition

1. Are Thai bank deposits safe?

Yes, they are insured up to THB 1 million by the Deposit Protection Agency (DPA) per depositor per institution.

2. Can I withdraw funds from savings insurance early?

Possible, but it may result in lower returns or surrender charges. These plans are designed for long-term commitment.

3. Are there tax benefits to savings insurance in Thailand?

Yes, some life insurance policies (including savings insurance) qualify for personal tax deductions up to THB 100,000 per year.

4. Can I hold both a bank account and savings insurance at the same time?

Absolutely—and it’s encouraged. They serve different purposes in your financial plan.

5. Who regulates savings insurance providers in Thailand?

The Office of Insurance Commission (OIC) regulates all insurance providers, ensuring transparency, solvency, and consumer protection.