Gold Deposit Interest Rates Soar to 1.5%

Local lenders have rushed to raise the gold deposit interest rates to 1.5% ahead of Circular 13’s deadline, the local news wire Tuoi Tre (Youth) reported September 20.

Local lenders have rushed to raise the gold deposit interest rates to 1.5% ahead of Circular 13’s deadline, the local news wire Tuoi Tre (Youth) reported September 20.

Southernbank raised the gold deposit interest rates by 0.55%-1% to 1.5% for 6-month to 24-month terms, the highest rates seen in the market, said the lender its website.

Sacombank raised deposit interest rates for three-month term of SJC and SBJ Gold to 1% p.a and 1.1% p.a , respectively, doubling the previous ones. The lender also pushed up gold deposit interest rates for one-month and two-month terms to 0.6% p.a and 0.8% p.a, respectively.

Dai A Bank also joined the race to made upward adjustments of roughly 0.15%p.a -0.6% p.a, in which deposit interest rates were raised to 0.8% p.a from 0.6% for three-month term, 0.25% for six-month term and 0.45% for above 9-month term.

As stipulated in Circular 13, local banks are requested to keep a maximum of 80% loan to deposit ratio (LDR) by October 1, which put pressure on banks to either cut lending or increase deposits.

As a solution, the lenders’ move will help them to increase their commercial funds to maintain 80% of LDR without having to slash their outstanding loans. – Stoxplus.com

Tags: Gold deposit interest rates

Posted by VBN on Sep 20 2010. Filed under Banking-Finance, Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry