Savings interest rates jump to 8.2pct., bond interest rates reach 20pct.

14-Jul-2021 Intellasia | Dan Tri | 5:02 AM Print This Post

In the context when banks’ interest rate level is not really attractive, the savings interest rate of up to 8.2 percent per annum or bond interest rate of up to 20 percent offered by banks are unexpected. However, a survey showed that there is a significant difference in interest rates savings among banks, and high savings interest rates must come with a number of conditions.

Orient Commercial Joint Stock Bank (OCB) is currently listing the highest savings interest rate, reaching 8.2 percent per annum on term of 13 months and 8.1 percent per annum on term of 12 months. However, the 8.2 percent per annum rate is applicable to 13-month deposits of over 500 billion dong, based on the bank’s base interest rate table, in which, the base interest rate is the reference rate used by OCB to adjust lending interest rates after the fix interest rate period.

The highest savings interest rate in Asia Commercial Joint Stock Bank (ACB) is 7.4 percent per annum, applicable to 13-month deposits from 30 billion dong or more. For smaller deposits, customers are offered the rate of 6.6 percent per annum on term of 13 months.

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) applies an interest rate of 7.1 percent per annum for ordinary 12-month deposits (interests paid at maturity) on term of 12 months. In order to enjoy this rate, the deposit should be from 200 billion dong and customer must commit not to withdraw before maturity.

For Maritime Commercial Joint Stock Bank (MSB), customers depositing from 200 billion dong on terms of 12 and 13 months are offered the rate of seven percent per annum.

The highest savings interest rate in July is listed at 6.99 percent per annum in Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), 6.95 percent per annum in HCM City Development Commercial Joint Stock Bank (HDBank), 6.9 percent per annum in Military Commercial Joint Stock Bank and Viet A Commercial Joint Stock Bank (VietABank), etc. Customers must also satisfy some specific conditions to be able to be offered these rates.

In the top 10 banks with high savings interest rates, Kien Long Commercial Joint Stock Bank (Kienlongbank) is in the last position with savings rates for over-the-counter deposits ranging around 3.1 percent per annum to 6.75 percent per annum, interests paid at maturity.

Risk warnings from the very high bond interest rates

After the first quiet quarter in 2021 with new regulations on private placement of bonds, domestic businesses have started to accelerate capital mobilisation through this channel.

After the first five months of the year, statistics of KB Vietnam Securities Company (KBSV) showed that Phat Dat (PDR) paid the highest interest rate of up to 13%. From the beginning of the year until now, this real estate giant has issued a total of 680 billion dong of bonds with secured assets being the company’s shares in the VN30 portfolio.

Tiki is another company which pays bond interest rate of up to 13 percent per annum. The company completed the issuance in June. This e-commerce platform issued 1,000 of individual bonds on a term of two years. The majority of bondholders of Tiki’s bonds are individual investors.

According to Nguyen The Minh, Analysis director of Yuanta Vietnam, individual investors should not take risks and buy corporate bonds because of high interest rates. Unsecured bonds are very risky for individual investors. The principle of the financial market is that high risk comes with high profit but there is the risk of losing money.

Since savings interest rates are too low, many people seek to invest in corporate bonds in addition to investing in securities.

Most of the offers to buy bonds issued by groups like Sovico, Sunshine, BCG Land, Helios, Vinaconex, Tan Hoang Minh, Kinh Bac have interest rates of eight to 12 percent per annum, higher than the savings interest rates at large banks.

Particularly, the broker of VSet Group said that in addition to the fixed interest rate of 12 percent per annum, there is a bonus interest rate for bond buyers. If investing from one billion dong or more, the company gives buyers a bonus interest rate of 6.8 percent per annum, equivalent to a total interest rate of 18.8 percent per annum, threefold higher than banks’ savings interest rates.

Tax revenues soar

At the conference to review the first six months of the year, a representative of the general Department of Taxation said that the budget revenue in the first half of 2021 was relatively positive, mainly due to the economic growth momentum from the end of 2020 and the increase in revenue from a number of sources due to the benefits from the fiscal and monetary policies in 2020.

According to this agency, some industries recording high growth rates such as banking, securities, real estate, automobile manufacturing and assembling, etc. have made important contributions to the budget revenue in the first two quarters of 2021.

Specifically, the corporate income tax from real estate transfer reached about 8.6 trillion dong, up by 61.7 percent over the same period of last year.

The number of personal income tax from real estate transfer was about 4.5 trillion dong, and real estate registration fee increased by about 1.1 trillion dong.

In the first six months of 2021, the budget revenue from securities business activities also grew by 2.47 times over the same period of 2021, equivalent to an increase of about 2.6 trillion dong.

The corporate income tax of securities companies rose by 1.1 trillion dong, and personal income tax from securities transfer increased by 1.5 trillion dong.

 

Category: Finance, Vietnam

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