Demand Deposit Interest Rate Climbs to 9%/Year in Vietnam
South East Asian Commercial Joint Stock Bank (SeABank) has launched a new savings product with demand interest rate of up to 9% per annum, compared to the common rate of between 3% and 3.6% at other banks in Vietnam.
The bank offers its SeASave Smart product to customers at the most attractive rate which is 2.5 times higher than the ordinary demand saving rate of SeABank, the Hanoi-based unlisted bank said on its website.
Customers opening SeASave Smart account with balance of over VND50 million or US$3,000 or EUR2,000 will receive demand deposit interest rate of 9% per annum for the dong, 2% for U.S. dollar and 1.5% for euro.
Respective rates of 6%, 1.5% and 1.25%, meanwhile, will be applied for lower balances.
Low liquidity has forced local banks to launch various promotion programs to attract more funds from locals, sending the real deposit interest rates to surpass the 10.5%-per-annum ceiling set by the State Bank of Vietnam (SBV).
Statistics from the SBV showed that total deposits of domestic banking system were down 0.17% in the first two months of this year, mainly because of an on-year fall of 5.94% in deposits by economic institutions. (Vietnam Economic Times)
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