Vietnam Bank for Private Enterprises (VPBank) from May 11 officially raised interest rates of dong deposits secured in US dollars. Under such a scheme, US dollar rates of VPBank strongly grew against previous rates and particularly VPBank’s US dollar rates are higher than common interest rates at other commercial banks, that is 0.8-1%.
The US dollar deposit interest rate rose from 2.0% per year to 2.9% per year for one-month terms, from 2.5% per year to 3.1% per year for two-month terms, from 3.0% per year to 3.3% per year for three-month terms. The interest rates for six-month and 12-month terms were fixed at 3.5% per year and 4.0% per year as previously.
Explaining for VPBank’s hiking US dollar interest rates, Le Dac Son, VPBank’s general director confirmed that “VPBank’s move is conformable to movements on the monetary and finance market following a series of decisions on boosting interest rates by other players. However, that the US Federal Reserve on May 4 increased its key rate to 3% is a decisive factor that has forced VPBank to boost US dollar interest rates on almost all terms.” Presently, domestic interest rates remain lower compared to the regional market, thus in the near future not only US dollar rates but also dong rates will continue presenting sharp swings, according to Son.
With such new US dollar deposit interest rates via dong deposits secured in US dollar, VPBank is now known as one of the banks having the highest US dollar deposit rates in the market. In addition, VPBank has supplemented some new regulations into these products in a bid to ensure benefits for depositors: if clients withdraw money at the time when the dong/US dollar rate is lower than that on the depositing day, the cross rate on the depositing day will be considered as a basis for such money withdrawal.