Over the past few days of 2005, the Vietnamese currency market heated up with a race of interest increase of commercial banks in an effort to attract capital.
With attractive offers from banks and ups and downs of the gold price, customers had to make their own options. In December 2005, the State Bank of Vietnam for third time in the year increased base interest rate from 7.8 per cent per annum (or 0.65 per cent per month) to 8.25 per cent per year (or 0.6875 per cent per month).
The Bank for Foreign Trade of Vietnam (Vietcombank) increased its interest of deposits in US dollar. From December 26, 2005, Vietcombank Hanoi increased its interest rates of savings and deposits in personal accounts in US dollar with duration from one months to 60 months to between 0.3 per cent per annum and 0.85 per cent per annum, respectively.
Before Vietcombank, the Technological and Commercial Joint stock Bank of Vietnam (Techcombank) increased its New Year interests of savings in Vietnam dong by between 0.12 per cent and 0.3 per cent, and savings in US dollar by between 0.15 per cent to 0.35 per cent.
Interest of 12 month savings in US dollar of Vietcombank reached 4.5 per cent per annum, closing to the market highest interest of 4.66 per cent per annum of the Vietnam International Bank (VIB Bank). The interest rate of 12 month savings in US dollar of the Vietnam Commercial Joint-Stock Bank for Private Enterprise (VP Bank) reached 4.3 per cent per year. Other banks announced their new interests for savings in foreign currencies to attract customers. From December 21, 2005, Techcombank adjusted its interests for savings in Vietnam dong and US dollar nationwide. The increase margin of interests of savings in Vietnam dong is now between 0.12 and 0.8 per cent while the figure for savings in US dollar is between 0.15 and 0.35 per cent per year.
Furthermore, banks have launched lottery savings with attractive prizes to attract customers. The Industrial and Commercial Bank of Vietnam (Incombank) has launched a saving ladder programme for seven month savings in Vietnam dong. Accordingly, if savings are below VND 40 million, their interest rate is 7.85 per cent per year; between VND 40 million and 100 million, interest rate is 7.95 per cent per annum, if between VND 100 million and 300 million, interest rate is eight per cent; if between VND 300 million and 500 million, interest rate is 8.1 per cent; and over VND 500 million, interest rate is 8.15 per cent per. Interest rate of 24 month savings of over VND 500 million is 9.45 per cent per year.
On the occasion of the New Year, many banks have launched new services. The Bank for Agriculture and Rural Development of Vietnam (Agribank) organised a lottery saving programme from December 27, 2005 to March 27, 2006. The bank offers total 3,581 prizes with total value of 440 tael of AAA gold. The special prize is valued at 100 tael of AAA gold.
The Asian Commercial Joint stock Bank (ACB) has recently launched a service of overdraft facilities for individuals and enterprises. With this product, customers and overdraft on their accounts opened at the bank at with a granted limit. When accounts are topped up, the bank will deduce the amounts customers have overdraft facilities on their accounts.
Mai Anh
Vietnamese
