Best deposit rates

SCB, Saigon Commercial Bank, it was 7.5% last week for 13 months.

Swee Loke wrote:

Hi all, currently, which is the best LOCAL bank for the best deposit rates for say, 12 thang? Thanks a million.

or as an alternative you could try an investment bond with T*SI............6 months paying interest every quarter 8% PA..................12 months paying interest every quarter 8.8 PA

Is that where my Vietnamese citizen friend could put an initial investment in of say $1000, then additional $100 per month....based on simple interest.....earn about $28K by the end of 13 months?

$$ Accounts have not received that kind of interest since about 2000.  Viet Dong accounts have been bouncing between 14% (year 2000) and now down to about 7.5 PER ANNUM. My wife is getting about 300mil Viet dong a year on a 4 Bill bom ti)  account.

Find me an account that for $1000 USD investment I get $28K USD a year and I'll dump a Half a Mil USD into it tomorrow. 

Jeff-FL wrote:

Is that where my Vietnamese citizen friend could put an initial investment in of say $1000, then additional $100 per month....based on simple interest.....earn about $28K by the end of 13 months?

I suspect some zeros are missing from your numbers

tunnelrat69 wrote:

$$ Accounts have not received that kind of interest since about 2000.  Viet Dong accounts have been bouncing between 14% (year 2000) and now down to about 7.5 PER ANNUM. My wife is getting about 300mil Viet dong a year on a 4 Bill bom ti)  account.

Find me an account that for $1000 USD investment I get $28K USD a year and I'll dump a Half a Mil USD into it tomorrow. 

14% ahhhhhhhhh I remember those good old days

Jeff-FL wrote:

Is that where my Vietnamese citizen friend could put an initial investment in of say $1000, then additional $100 per month....based on simple interest.....earn about $28K by the end of 13 months?

Oh good a math problem. 

In Vietnamese banks, dollar accounts don't get interest. Earnings = $0.
So use VND accounts. 

VND accounts pay interest but you have to sign a contract at deposit time.
Let's say 12 month contracts, iAnnual,  give 6%.
Let's say 1 month contracts, iMonth, give 5% starting with 2nd month.
(Ignore that there are quarterly, semiannual rates too.)
After 13 periods of simple non-compounding interest:

earnings = one 12-month deposit + one 13th-monthly deposit + 12 monthly deposits
earnings = ($1000 * iAnnual) + ($1000 * iMonth) + ( $100 * iMonth * ((12 months + 1)/2 * 12))
earnings =  $50 + $5 + $390
earnings = $445

Did you mean 13 years? I think so.
Using compound interest now with nerdwallet.com calculator ...

Add these -
$1000 single deposit after 13 years = $2,133
$100 recurring monthly deposit after 13 years = $22,884.
$25k almost $28k    

Caveats:
Used 6% rate, probably changes to ?? by 2032.
Remember VND fundnot $ accounts.
Currency conversions always changing.

To colinoscopee: SCB gives 7.5% for foreigners on 13 month basis only if deposit is 500 k. Nothing less. FYI.  For 12 months it is 7% a trifle less..

Swee Loke wrote:

To colinoscopee: SCB gives 7.5% for foreigners on 13 month basis only if deposit is 500 k. Nothing less. FYI.  For 12 months it is 7% a trifle less..

Im confused, you talking 500k or 500 trieu?

You are right, it's 500 million.  My mistake.

Nam A is 7.4% for 12 months.

No doubt slightly more, but assets wise and size, Saigon Commercial is more steady than Nam A..

I only got 6.8% for 13 months from SCB last month 

pureluck wrote:

I only got 6.8% for 13 months from SCB last month 

As long as the Việt Nam đồng continues to strengthen in relation to a weaker US Dollar, I would only expect that downward trend to continue.

It definitely wouldn't surprise me to see the interest rates drop below 6% this year.

The state bank of Viet Nam has asked banks to not to pay dividends so they can reduce interest in the future.

Interest rates

OceanBeach92107 wrote:

pureluck wrote:

I only got 6.8% for 13 months from SCB last month 

As long as the Việt Nam đồng continues to strengthen in relation to a weaker US Dollar, I would only expect that downward trend to continue.

It definitely wouldn't surprise me to see the interest rates drop below 6% this year.

[img align=C]https://gordythomas.files.wordpress.com/2022/01/screenshot_20220126-101103_chrome.jpg[/url]

But as an alternative take on the USD to VND rate the FED have indicated first interest rate rise as of March & who knows where USD rates will be at by year end the way things are going & it would not surprise me if the USD/VND is above 23k again by year end & I can live in hope anyways! My dream for 2022...........strong USD, WORLD STOCK MARKETS ALL UP UP UP, COVID IS JUST A BAD DREAM. Well no harm in dreaming is there

Just curious if you need to be living in VN to be able to take advantage of these products? There's nothing in the US that even come close to the 7% return per year banking wise.

qnbui wrote:

Just curious if you need to be living in VN to be able to take advantage of these products?

Yes

Of course,  as a foreigner, you need to show your face as well as your passport, and long term visa...

Thanks for the info!