Banks race to increase interest rates on gold deposits

Banks raced to raise their gold deposit interest rates after the Saigon Jewelry Company Limited (SJC) and 5 selected banks were allowed to sell gold deposits to help stabilize the domestic gold market.

The highest rate offered for gold deposit was seen at Tin Nghia Bank, hitting 2.2% per annum. Other small banks also offered high rates ranging from 1.7-2% p.a.

Meanwhile, Eximbank’s interest rates on gold deposits for 1-month to 1-year terms all stayed at 1.5%, up from 1%.

The 1-month gold deposit rate for at ACB was 0.85%, up from 0.75% in September and 0.55% as of mid-June. The rate for 1-year term also climbed to 1.3% p.a. ACB also applied the interest rate on gold deposits at 1.05-1.15% /year for less than 3 months terms, plus interest and bonus of 0.5% for customers who deposit above 30 taels of gold.

Some believed that several banks are dodging to convert gold into dong, solving their current liquidity problems.

Source Sophie/ News Writer/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates

Posted by VBN on Oct 11 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry