Banks unanimously offer ‘three nines’ interest rate

VnnNews – A curious phenomenon can be seen at commercial banks – the 9.99 percent interest rate for all kinds of deposits.

With several hundred million dong in his pocket, Phuc wants to make a deposit. He has checked information on interest rates offered by different banks and noticed all offer 9.99 percent - the ‘three nines’ interest rate.

 

At HD Bank 9.99 percent is the highest interest rate offered by the bank for normal deposits. As for tiered interest rate saving products (interest rates are calculated depending on the sums of deposits), the 9.99 percent interest rate is being applied for the deposits of 15 months, 18 months, 24 months and 36 month term deposits as well.

 

Viet A Bank is also offering the 9.99 percent interest rate for both three month and six month term deposits, the most popular kind of deposits now. Orient Bank has promised interest rates of 9.99 percent per annum for all three, six and nine month term promissory notes.

 

Habubank has announced a ‘super-interest rate for depositors’ programme. However, the highest interest rate it offers is 9.99 percent per annum only which is being applied to short term deposits (1-3 month term deposits). Similarly, Maritime Bank and South East Asia Banks are also offering 9.99 percent for 3-month term deposits.

 

Commercial banks have set 9.99 percent as their highest deposit interest rates after the State Bank of Vietnam declared it will inspect banks which offer overly high interest rates, 10 percent per annum and higher.

 

Why is 10 percent the threshold?

 

According to the central bank, it has been maintaining basic interest rates at 7 percent per annum in order to curb ceiling lending interest rate at 10.5 percent. Therefore, commercial banks will not be able to make profits if they mobilize capital at a cost of 10 percent per annum or higher.

 

Following the announcement on taking inspection tours to commercial banks, the central bank has succeeded in cooling down interest rates race among commercial banks, curbing the interest rate at 9.99 percent.

 

Prior to this, banks all rushed to raise the deposit interest rates in order to attract more deposits and scramble for clients.

 

Now commercial banks are not attempting to dodge laws by launching promotion campaigns offering ‘bonus interest rates’, the thing that they once did..

 

Now banks are trying to attract people by offering gifts to depositors with limited success.

 

Depositors are tending to make short term deposits because banks offer the same interest rates for short term and long term deposits. Meanwhile, short term depositing allows people to act flexibly in case of the interest rate fluctuations.

 

VietNamNet/TT

 

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2. Banks pushing up interest rates in hopes of luring deposits
3. Stable basic interest rate predicted
4. National Assembly urged to stop interest rate subsidy
5. Banks saying ‘no’ to securities loans

Tags: Commercial Banks, Interest Rate, Interest Rates, Month Term, Month Term Deposits, Per Annum, Percent Per, Percent Per Annum, Short Term, Term Deposits

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