Saigon – Hanoi Commercial Joint Stock Bank (SHB) has just issued Phat Loc 2020 deposit certificates for individual customers with preferential interest rates up to 7.5% / year. The total par value of the issue is VND 2,000 billion.

With the minimum amount of only 100,000 VND, customers can buy certificates of deposit with the first year interest rate for 6 and 8 year terms of 7.3% / year and 7.5% / year respectively. The interest rates in the following years will be appropriately adjusted, ensuring competition in the market. This is a quite high interest rate, because SHB currently mobilizes capital through normal savings channels at the highest rate of 6.4% / year with a term of 36 months.

When there is an unexpected need to use capital, customers can pledge their certificates of deposit to get loans at all SHB transaction offices with the minimum preferential mortgage interest rate equal to the interest rate of the certificates of deposit. Buyers can also use certificates of deposit as collateral for loans or guarantees at other credit institutions according to regulations.

The deposit interest rate via certificates of deposit is significantly higher than conventional savings. Photo: Lam Giang

Certificates of deposit are considered as one of the bank’s medium and long term capital mobilization channels, encouraging customers to save money in the context of the continuous decline in input interest rates.

The latest statistics of the State Bank show that the deposit interest rates continue to go down compared to the end of 2019. Currently, the deposit interest rates in VND are popular at 3.3-3.9% / years for term deposits from 1 month to less than 6 months; 4.2% -6% / year for term deposits from 6 months to less than 12 months; 12 months or more is only about 5.8% -6.9% / year.

Particularly, some banks have brought interest rates on term deposits below 3% / year. As at Vietnam Technological and Commercial Joint Stock Bank (Techcombank), in the latest deposit interest rate schedule, ordinary customers who deposit less than 1 billion dong with 1 month term are only 2.45% / year; The interest rate for 2 months is 2.55% / year and from 4-6 months is 2.65% / year.

According to SHB, the impact of the Covid-19 translation makes investors more cautious and tends to prioritize safe investments, in which certificates of deposit with high interest rates will help bring first opportunities. secure profitability.

Previously, many commercial banks mobilized thousands of billion dong of idle capital from residents through the deposit certificate channel with higher interest rates than ordinary savings. A certificate of deposit is a valuable paper similar to a savings book and a deposit contract issued by a bank that certifies the client’s ownership of a term deposit at the bank.

Thai Phuong

Source: nld.com.vn – Translated by fintel.vn