Tinnghiabank raises gold deposit interest rates above 3% p.a.

Vietnam Tin Nghia Bank (TinNghiaBank) increased the interest rates it offered on gold certificates to 3.1%, the highest level in the banking system and up 0.4% from the bank’s previous level, the local online newspaper VnEpress.net reported.

Customers who deposited at least 0.1 tael of SJC gold were entitled to receive extra interest rates, said an unnamed staff of TinNghiaBank, specifying that depositors would earn an interest rate 3.1% p.a. on their gold deposits for 3, 4, 6 and 9 – month terms (up 0.4-0.6%) while the interest rates were 3.05% (up 1.05%) and 3.06% p.a. (up 1.02%) for 1 and 2 – month terms, respectively.

The bank’s policy was applicable from Oct 26. However, TinNghiaBank still listed interest rates on gold deposits on its website at maximum 2.7% p.a.

DongA Bank and Saigon Commercial Bank (SCB) previously announced to pay at maximum 3% interest rate on gold certificates.

The State Bank of Vietnam recently issued Official Dispatch No.8492, requesting all credit institutions to take measures to gradually reduce gold deposits, ensuring that the issuance of short term gold certificates by credit institutions would be terminated by May 1, 2012. The central bank’s move came out after many lenders outside G5+1 simultaneously offered to purchase gold at attractive prices from gold, VND or USD depositors, dodging the deposit rate caps to attract funds.

Source Sophie/ StoxPlus

Tags: Tinnghiabank, Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Nov 10 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