“When the economy is going through major changes; gold price fluctuates; the real estate market is frozen; the stock market bottoms out and many businesses declare bankruptcy, deposits become a safe investment alternative,” a banking expert offered his thought.
According to a recent survey regarding the most effective investment channel, 70 out of 100 people said they do not know what to do with their money. After suggesting several common investment channels like gold, dollar, real estate or listed securities, the surveyors received a lukewarm reply. It is too risky to invest in gold because of its frequent price fluctuation. This is a golden opportunity to invest in real estate, but the majority do not have enough money. It is even harder to secure bank loan contracts because of the high interest rate, which will become a burden if the market does not recover soon. The stock market has bottomed out with the majority of listed securities taking a sharp dive in price, scaring investors away from the market.
At the moment, many people prefer the safe haven that deposit provides, despite its inherent low return rate. Ms Lien (Cau Giay, Hanoi) revealed that her husband and she do not currently invest more than VND500 million in savings. Instead, the couple decided to deposit their savings to earn monthly interest in order to put their two children to school and also to make her less worried about the safety of the savings, which can be withdrawn at will. According to Mr Hoai Nam (Tam Chinh, Hanoi), a successful businessman and an executive of a big corporation in Hanoi, “Although I do not like the idea of deposits because of the low and slow return rate, I still choose to open a deposit account because this is the safest and most stable investment channel at the moment”.
Seizing the opportunity, banks one after another introduce promotion programs with attractive prises such as cars, washing machines, computers, speaker systems and other household appliances. SeABank with its special scratched card promotion program guarantees customers a 100 percent winning chance with prizes worth between VND30,000 to VND10 million. Moreover, at the end of the program, SeABank holds a fortune wheel event with one first prize, two second prizes, five third prizes and ten lucky prizes for customers with the highest number of entry codes. The prize is Visa cards worth between VND1-100 million and issued by SeABank. The prises in this program totals up to VND15 billion.
According to Mr Le Quoc Long, SeABank’s Deputy General Director, since the inception of the deposit program titled “Happy birthday SeABank, scratch fast to win big” (from August 16 to October 10, 2012), the number of customers as well as the bank’s revenue have increased substantially compared to the prior period. Customers are very impressed. Ms Nguyen Thuy Trang, a loyal customer at SeABank, claimed that she chose to deposit her money in the bank due not only to the attractive cash rewards, but the satisfaction and trust she gets from the customer service. Every time when the interest income is due, she receives a call from the bank’s representative instructing her how to choose the best deposit type and period to reinvest her money.
Though deposit is a safe investment channel, many people are still concerned about which deposit type they should choose and where to deposit their money. Programs to attract more deposits from customers often come with attractive prizes because of the fierce competition among banks. Many banks implemented the fortune wheel program with valuable items such as cars, apartments or foreign tours, but did not garner much attention from customers because of an extremely low chance of winning.
Understanding this mentality, some banks employed the “immediate cash” and low-priced item reward program with a 100 percent winning chance. This method helps eliminate the “try your luck” mentality and seems to grasp more attention from customers because cash and tangible items are involved. Ms Thuy Trang also commented, “I have opened many deposit accounts with different banks for a long time. Previously most banks implemented the gift award and fortune wheel program but she was never lucky enough to receive any prises. Each time, I had my fair share of palpitation and disappointment and went home empty-handed. However, with the “Scratch to win immediate cash reward” program of SeABank, the fact that I receive something every time the card is scratched really mesmerised me. I have already recommended my family members and friends to deposit their money in SeABank to experience the thrill of a 100 percent winning chance”.
In conclusion, during the economic crisis, bank deposit is the most preferable investment channel. What the customers are concerned about, however, is to determine the deposit type with the attached concessions, the period as well as location in order to maximise their returns.
PV
Vietnamese
