Term Deposits

DaveTonetti wrote:

What are people's opinions in regard to term deposits these days?

A few people have commented here:

expat. com/forum/viewtopic.php?id=859279

DaveTonetti wrote:

What are people's opinions in regard to term deposits these days?

Are you enquiring about term because of concerns with echonimic climate?

goodolboy wrote:

DaveTonetti wrote:

What are people's opinions in regard to term deposits these days?

Are you enquiring about term because of concerns with echonimic climate?

Yes. I wonder if there are any economists here and what their perspectives may be.

DaveTonetti wrote:

goodolboy wrote:

DaveTonetti wrote:

What are people's opinions in regard to term deposits these days?

Are you enquiring about term because of concerns with echonimic climate?

Yes. I wonder if there are any economists here and what their perspectives may be.

well I am sure there are many armature & "professional" economists on this Forum but hey do even the professionals economists ever  get it right?  I am personally just a little bit concerned (like you by your post) how all this is going to pan out over the next few months

My personal take on it & action carried out yesterday & in my opinion for what its worth is that “we aint seen nothing yet”.

So here goes :-

Yesterday, I Checked at my bank here in Vietnam what insurance cover I had on my deposits. Their guidance was as far as I can understand …….up to a total of 75,000,000 VND on VND accounts…. (not for each account or term deposit, [b]this is the total per account holder per Bank),[/b] no insurance cover on my non VND accounts.

I had a 6 months VND term mature yesterday at 6.5%, I took 25% out in cash & renewed 75% in a 1 month term at 4%.

Another 6 months VND term matures late next month & will have to make a decision then what to do depending on the gut feeling & things look at that time.

On an entirely different but important note I checked all my international bank accounts insurance cover & here goes:-

SINGAPORE...............up to 75,000 sing$ on sing$ accounts nothing on non sing$ accounts.
THAI………………….......forget it!!
UK…………………..........up to 85,000gbp
USA…………………........250,000usd on cash deposits, 250,000usd on stocks held.

Again & I am no expert & everyone should make their own decisions but  for me go1 month term for now & see how things look at the end of each month term.
       
Bit long winded but I hope this helps you in these troubling times.

Anyone that can contradict my statement on the VND protection please feel free.

Hello, thank you everyone for all the information you provided above. How is everyone feeling now with term deposits and the current economic climate in Vietnam? I’m thinking about transferring money to a Vietnam bank to take advantage of the 6%+ rate.  Appreciate and feedback.

3 things to consider other than the fact that 6% > 2%, etc : 1) losses due to  currency conversion into vnd and back to your home currency 2) losses due to vnd decreasing in value in your home currency during the term and 3) issues with getting your money out of VN when the term is over.

3) can possibly be handled with proper paperwork, but be sure you're on top of it. Also be aware that laws and regulations change all the time in VN with no notice.

So there's risk involved.

Kurtbright wrote:

Hello, thank you everyone for all the information you provided above. How is everyone feeling now with term deposits and the current economic climate in Vietnam? I’m thinking about transferring money to a Vietnam bank to take advantage of the 6%+ rate.  Appreciate and feedback.

The Đồng has slightly outperformed the dollar over the past year:

Hi, I’m looking at transferring money from Australia to Vietnam to open a term deposit. My biggest worry is getting the money back out of Vietnam when I’m ready to leave Vietnam.   I will transfer the money using TransferWise.  TransferWise provide a receipt for all transfers. My questions:

1. Once I close term deposit, will I be able to transfer the money back out of Vietnam easily with the international currency TransferWise receipt. Is this enough proof showing where the money came from. 

2. Does anyone have a bank recommendation for term deposits.

I appreciate any feedback.

Thank you.

If the same amount of money you bring in stays in your account, you can send it out. If you remove the money from the bank you will need to show a papertrail of what you did with it. I know this because I had the same situation.

First check at your bank here in VN if you can have a term deposit in your name. Banking here is very anti foreigner.

Kurtbright wrote:

Hi, I’m looking at transferring money from Australia to Vietnam to open a term deposit. My biggest worry is getting the money back out of Vietnam when I’m ready to leave Vietnam.   I will transfer the money using TransferWise.  TransferWise provide a receipt for all transfers. My questions:

1. Once I close term deposit, will I be able to transfer the money back out of Vietnam easily with the international currency TransferWise receipt. Is this enough proof showing where the money came from. 

2. Does anyone have a bank recommendation for term deposits.

I appreciate any feedback.

Thank you.

Before you open a term deposit account you must open a standard account and meet requirements for that.

Yes, I have opened an account at Techombank and VP Bank. I’ve heard Vietcombank is the best? I have all the right documents TRC etc.

Just make sure that if you bring in 50k aud and change it into vnd, that same amount stays in your account until you want to transfer it back to Oz. Term deposits these days are about 7-7.5 % for 13 months.

What banks are still offering 7%? Techombank and VP Bank are both 5.4%

Kurtbright wrote:

What banks are still offering 7%? Techombank and VP Bank are both 5.4%

Just renewed a 6 months term at Sacombank 5% managed to negotiated up to 5.3% take it or leave it. Agri less!! I think. Thing is the higher the rate usually means the higher the risk!!......well thats my take on it & remember banks here only give up to 75 million VND capital protection per account & only on VND accounts, foreign currency accounts are not protected.

Kurtbright wrote:

What banks are still offering 7%? Techombank and VP Bank are both 5.4%

Numerous banks, PG Bank was offering 7% I saw a sign outside the bank on Friday. There are a lot of banks here, as mentioned above, smaller the bank, higher the risk.

Kurtbright wrote:

What banks are still offering 7%? Techombank and VP Bank are both 5.4%

Some info is out there via Google:

banks-cut-interest-rates-from-october

I remember back in 2009 interest rates were around 17%. Gold may be a better option these days, especially if we see a decline in the local stockmarket.

I think VIB and Timo are both offering 7% from memory

colinoscapee wrote:

I remember back in 2009 interest rates were around 17%.

Ahhhhhhhh them were the days.

goodolboy wrote:

colinoscapee wrote:

I remember back in 2009 interest rates were around 17%.

Ahhhhhhhh them were the days.

That is because inflation in 2008 was 23% (source macrotrends.net).

Travelfar wrote:

goodolboy wrote:

colinoscapee wrote:

I remember back in 2009 interest rates were around 17%.

Ahhhhhhhh them were the days.

That is because inflation in 2008 was 23% (source macrotrends.net).

Inflation whats that, all I know is that 1 billion VND in the bank here back then (2008 through to 2012) covered all my expenses & then some. The USD was king & our first 2 bed house in the country cost me 30k usd to build & incl kiting it out & everything was cheap as chips. Beer Saigon about 20 cents & thats sitting down at a BBQ shop not a supermarket. If inflation was that bad I certainly never saw it, for years costs increased very little for me anyways.

I seem to recall that there are different restrictions on principle funds deposited vs. interest earned.

Is it true that the principle funds can be sent back overseas but not the earned interest?

Just back from re opening my account at the international bank S****************  you know the one ......................thats "not just here..... but here for good"
6 months term 7% special offer ends tomorrow. Guaranteed to return the capital but NOT THE INTEREST to where ever I want in the world.........well thats what they said!!

OceanBeach92107 wrote:

I seem to recall that there are different restrictions on principle funds deposited vs. interest earned.

Is it true that the principle funds can be sent back overseas but not the earned interest?

Yup thats my understanding & has been like that for years.

goodolboy wrote:

Travelfar wrote:

goodolboy wrote:

Ahhhhhhhh them were the days.

That is because inflation in 2008 was 23% (source macrotrends.net).

Inflation whats that, all I know is that 1 billion VND in the bank here back then (2008 through to 2012) covered all my expenses & then some. The USD was king & our first 2 bed house in the country cost me 30k usd to build & incl kiting it out & everything was cheap as chips. Beer Saigon about 20 cents & thats sitting down at a BBQ shop not a supermarket. If inflation was that bad I certainly never saw it, for years costs increased very little for me anyways.


https://i.postimg.cc/9rLKckN9/house.png

Please see DM I sent you.

OceanBeach92107 wrote:

I seem to recall that there are different restrictions on principle funds deposited vs. interest earned.

Is it true that the principle funds can be sent back overseas but not the earned interest?

Correct, what you bring in you can take out.