Banks Raise Interest Rates on Dong Deposits

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May 5 – Vietnamese commercial banks are increasing interest rates for dong deposits and offering cash bonuses to expedite the use of funds for the country’s economic stimulus package.

Saigon-Hanoi Bank boosted rates by 0.1 to 0.3 percent for deposits of between two and 24 months on April 27 while paying 8.8 percent for 12-month deposits.

Another Hanoi-based bank, Military Bank, has also changed rates from 0.2 to 0.4 percent and provides the highest rate of 8.6 percent per year for 60 months.

Eximbank in Ho Chi Minh City has announced that it would provide cash bonuses of VND200,000 to VND1 million to depositors depending on the amount and deposit term.

Maritime Bank also followed suit through a campaign that gave depositors 9.3 percent on 48-month deposits and scratch cards with prizes like microwave ovens and orange juicers.

The government has also gone as far as to provide bank loans to companies and individuals for up to two years to aid economic growth. The country’s economy has been struggling to come to grips with the faltering world economy as the economy grew by only 3.1 percent, compared to last year’s 7.5 percent during the same period.