(Tiểu luận) topic deposit products and prices of selected commercialbanks in vietnam figures issue

Deposit products offered by the studied banks ➢ Interest rate: 0.1% 1%/year for customers with deposits of 250m VND or more ➢ Characteristic: ❖ Withdraw cash, transfer money by ATM cards

NATIONAL ECONOMIC UNIVERSITY

ADVANCED EDUCATION PROGRAM

—

TOPIC

DEPOSIT PRODUCTS AND PRICES OF SELECTED COMMERCIAL BANKS IN VIETNAM: FIGURES & ISSUE

Course name: Commercial Banking 1

Member : Nguyễn Vân Trang - 11219217

Mai Thị Hương Giang - 11211766

Đặng Thanh Mai - 11213626

1 Introduction about 3 selected commercial banks in Vietnam in the research group

1.1 BIDV - Bank for Investment and Development of Vietnam

BIDV was founded on 26 April 1957 under the initial name of Bank forConstruction of Vietnam, then renamed Bank for Investment and Construction ofVietnam (1981 - 1990), Bank for Investment and Development of Vietnam (1990 -2012), and Joint Stock Commercial Bank for Investment and Development ofVietnam (since 2012)

During the period, BIDV comprehensively completed its business targets,strengthening competitive capacity, becoming the leading commercial joint stockbank in Vietnam with sustainable development

1.2 Vietinbank - Vietnam Joint Stock Commercial Bank for Industry and Trade

Vietinbank is a large commercial bank in Vietnam Vietinbank belongs to thegroup of state-owned banks With more than 50% capital from the state, the rest iscontributed by enterprises Established in 1988, VietinBank is currently holding theleading role of a leading bank in the Vietnamese economy Vietinbank has a stronglydeveloped network with 148 branches and 7 member companies Along with 3 non-business units, and more than 1,000 transaction offices in 63 provinces/citiesnationwide

VietinBank is the first and only Vietnamese bank in Europe with 02 branches inFrankfurt and Germany With the largest capital scale, the best asset quality and thehighest brand value In consecutive years 2012 and 2013, VietinBank was voted byForbes Magazine as the Top 2000 largest enterprises in the world

1.3 ACB - Asia Commercial Joint Stock Bank

Known as Asia Bank for short, officially came into operation on June 4, 1993, led

by Mr Nguyen Quang Phuc as Chairman of the Board of Directors

Starting operation in 1993, ACB has had 29 years of development, continuouslygrowing to become one of the leading joint stock commercial banks ACB aims toprovide financial products and services to individual and corporate customers throughtraditional transaction channels, while constantly developing technology systems to

help customers transact quickly easily via electronic channels ACB currently has 86branches and 285 transaction offices (total 371 units) present in 48 provinces out of

63 provinces nationwide

The studied banks mentioned above were chosen for some reasons First, BIDV,Vietinbank, ACB are 3 big banks in the top 10 most prestigious commercial banks inVietnam 2023 evaluated by some factors such as: credit turnover, scale of bankingservices provided, growth rate, prices of services and products, income from servicesprovided In addition, the main websites of banks are scientifically and clearlydesigned, providing complete information for research and data search on productsand product prices that the studied banks provide to compare with each other

2 Deposit products offered by the studied banks

➢ Interest rate: 0.1% (1%/year for customers with deposits of 250m VND or more)

➢ Characteristic:

❖ Withdraw cash, transfer money by ATM cards at thousands of ATMs nationwide

❖ Transfer of time savings interest into the account

❖ Fast money transfer Current account is credited immediately after transactions are made between accounts opened at BIDV- Transactions are made anywhere at any time via BIDV Smart banking

● Term deposit:

➢ Currencies: VND, EUR, USD

Minimum balance: VND 500.000, EUR 100, USD 100.

➢ Characteristic:

❖ Account balance can be used to confirm customers’ financial capability or to guarantee their relatives’ overseas travel and study, etc

❖ Premature settlement allowed

❖ Depositors have to send and receive payments for term deposits via their own current accounts

❖ Ownership can be transferred when needed

● Saving account:

➢ Currencies: VND, USD, EUR, JPY

➢ Minimum balance: VND500,000; USD100; EUR100; JPY1,000,000

➢ Tenors: 1 week to 60 months

➢ Interest payment method: At maturity, upfront, monthly, quarterly

➢ Conditions: VND savings - Vietnamese citizens; Foreign currency savings - Vietnamese residents

Tenors: 1 month to 24 months

➢ Interest payment method: At maturity, monthly

➢ Condition: Vietnamese citizens and individual foreigners

➢ Characteristic:

❖ Account balance can be used to certify financial capacity for the purpose of tourism, study abroad, etc

❖ Safe, stable and effective investment channel

❖ Premature payment allowed

❖ Time is saved thanks to no counting of money, no risk of fake notes

❖ Easy account opening procedure, simple transaction method, competent bankstaff

❖ No fee for opening accounts

❖ Customers can use the account as mortgages, guarantee for loans atVietinBank

❖ Customers can deposit/withdraw the accounts either with cash or by transferwhen using check, wire transferring, secured check, payment authorization,collection authorization, etc

❖ Customers can transfer funds from current accounts to savings accounts andvice versa

Currencies: VND, USD, EUR.

➢ Minimum Balance: 100,000 VND, 10 USD or an equivalent

➢ Tenor: Flexible terms of 1 week, etc to 60 months

➢ Interest rate: 4,9 - 7,2%

➢ Interest payment method: up-front payment, term-end payment, and periodic payment

➢ Interest rates: use the normal term savings deposit rate schedule at each Branch

❖ Could be used as collateral for loans at VietinBank

❖ Ownership is transferable and ownership form could be selected

❖ Authorization for others to withdraw cash from account (per time or frequently) is available

❖ Various account payment forms are available: wire

transferring/cashing/interest accrued to the principal balance

● Savings account

➢ Currencies: VND, USD, EUR

➢ Minimum balance: 100,000 VND, 10 USD or an equivalent

➢ Condition: Customers who have idle cash without a future plan of use, to earn interest

on such amounts deposited with VietinBank

➢ Customer Type ( thuộc condition )

❖ VND account: Vietnamese and foreign individuals living and working legally

in Viet Nam

❖ Foreign currency account: Local residence individuals

➢ Interest rate: demand deposit rates are applied Rates are accrued each day and added

to the pending account, then at the end of the month added to the principal

➢ Characteristic:

❖ Add or withdraw cash (partly or all) from account at any time, from any transaction place during working hours of Vietinbank

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❖ Could be used as collateral for loans at VietinBank.

❖ Ownership is transferable and ownership form could be selected

❖ Authorization for others to withdraw cash from account (per time or

frequently) is available

❖ VND deposits are insured

❖ Automatically receive due interest from term deposits/valuable papers

c) ACB

● Current account:

➢ Currencies: VND, USD, EUR, AUD, GBP, CHF, CAD

➢ Minimum balance: VND: 100,000 VND USD: 20 USD

➢ Condition : Vietnamese individuals and foreigners

➢ Interest rate : 0,1%

➢ Characteristic:

❖ Fast money transfer within 1 minute from account to account/card account or

to recipient by ID card/Passport

❖ Pay bills automatically or proactively at the counter/ ACB Online/ Contact

Center 247 (direct debit)

❖ Get savings interest

❖ Transaction anytime, anywhere via free online banking service ACB Online

❖ Withdraw money, transfer money by ATM card at thousands of ATMs

● Term Deposits:

➢ Currencies: VND, USD

➢ Minimum balance: 1,000,000 VND/ 100 USD

➢ Condition:

❖ VND: Vietnamese and foreign individuals

❖ USD: Vietnamese individuals residents

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Customers may pledge their savings passbooks to obtain loans, secure the issuance of credit cards or provide guarantee for a third person to get loans from ACB

❖ Savings passbooks can be used to confirm customers’ financial capability or

to guarantee their relatives’ overseas travel and study

❖ Individual residents are entitled to use their savings accounts to pay for loans

or to transfer money into other ACB accounts of the holders

❖ Savings deposits can serve as a basis for issuing overdraft limits;

❖ Customers are entitled to transfer their ownership before maturity to preserve their interest

❖ Interest payment: monthly, quarterly, at maturity

● Saving accounts

➢ Currencies : VND, USD

➢ Minimum balance: 1,000,000 VND/ 100 USD

➢ Condition: VND: Individual Vietnamese and foreigners USD: Individual Vietnamese

➢ Interest rate: in conformity with product regulations

➢ Characteristic:

❖ Savings passbooks can be used to confirm customers’ financial capability or

to guarantee their relatives’ overseas travel and study;

❖ Individual residents are entitled to use their savings accounts to pay for loans

or to transfer money into other ACB accounts of the holders;

❖ Customers may carry out transactions at any ACB branches / transaction offices

❖ Savings deposits can serve as a basis for issuing overdraft limits

❖ Mode of interest payment: automatic monthly payment based on the date of opening the savings passbook

2.2 Corporate customers

Condition: Vietnamese organizations that are established and operating under

Vietnamese laws, Foreign organizations that are established and operating under the laws of their home countries

● Current account:

➢ Currencies: VND, USD, EUR and other foreign currencies

➢ Minimum balance: VND 1,000,000/ USD 100/ EUR 100

❖ Ensure liquidity while earning interests continuously

❖ Use the balance to secure loans or guarantee obligations of a third party

● Term deposit:

➢ Currencies: VND, USD, EUR

➢ Interest payment: Immediate payment/ Payment at maturity/ Periodic payment

➢ Interest rate: 4,6 - 6%

➢ Basis for interest calculation: A year of 365 days, a month of 30 days VND

➢ Characteristic:

❖ Co-ownership feature is available

❖ Use the balance to secure a loan at BIDV and other credit institutions

● Valuable papers:

➢ Currencies: VND, USD

➢ Interest payment: Immediate payment/ Payment at maturity/ Periodic payment

➢ Interest rate: Fixed/Floating

➢ Characteristic: Discounts in accordance with Vietnamese laws and BIDV's regulations

❖ Simple account opening procedures and trading methods

❖ To use modern electronic banking services (Mobile Banking, Internet Banking) and smart cash flow management services

● Term deposit:

Currencies : VND, USD, EUR

Interest rate: 4,6 - 6%

➢ Interest payment : Flexible according to customer needs (by day/month/year)

➢ Characteristic :

❖ The procedure is simple, fast and convenient

❖ Get maximum flexibility on deposit terms;

❖ To be guaranteed the safety and security of the enterprise's deposit;

❖ Get high returns for idle money with attractive interest rates

❖ A type of bond that can be transferred, given, given, or inherited

❖ When there is a need for capital, customers can use it as a mortgage for a loan

❖ The longer the period, the higher the interest rate

● Term deposit ( At maturity interest payment)

➢ Currencies: VND, USD, JPY

➢ Minimum balance : 1,000,000VND/ 100 USD/100.000JPY

Interest payment: Interest payments at deposit term end

❖ Many terms to select from with attractive interest rates

❖ Simple procedures, prompt processing

❖ Deposit account balance possibly used as collateral for loans or as guarantee for a third party’s loans from ACB

❖ Secured opening of credit cards with account balance

➢ Par value of one Certificate of deposits : 1,000,000,000 VND (One billion VND)

➢ Issuing price: 100% par value

➢ Total Certificate of deposit issued: 2,200 (two judgments two Certificate of deposit rewards)

➢ Term: 12 months

➢ Number of issuances: up to 4 batches

➢ Interest rate: fixed during Certificate of deposits Up to 6%/year

➢ Issuance method: private release by direct release method

➢ Characteristic: to increase the size of ACB's operating capital to serve signal demand.Confirmation of deposit unsecured by assets, with fixed interest rate, issued and paid

in Vietnam Dong

3 Prices of deposit products offered by the studied banks

3.1 Personal customers:

● VND account : 50,000 VND / account

● Priority account: 200.000VND

● Merchant Account: 200.000VND

Cash deposit to the

● In the difference province/city: 0.03%

minimum 10.000VND

● Same province : Free

● In the difference province:

● min : 10,000 VND

● max : 1,000,000 VND

● Same province/city: - -Under

20,000,000VND :5,000 VND/time-From 20,000,000 VND: Free

● Difference province/city: 0.03%; Min: 15,000 VND, Max: 1,000,000 VNDStatement of account

● In the last 24 months, the first 2 statements will be free, from the 3rd time the fee is 5,000 VND/pageAuthorization

account onwards

Term deposit & Saving account (online)

Account maintenance

fee

Deposit cash into the

account

Free Free ● Same province/city:

Free

● Different province/ city :

➔ VND:0,03%; Min 15.000đ, Max 1.000.000đ

➔ USD: 0,4%; Min 3USDWithdrawal (partial

or final), wire

transfer, money

transfer within 03

working days from

the date of deposit

● 0,03% x amount of withdrawal

3.2 Corporate customers:

Current account

( Open more accounts: 1,000,000 VND/account Time deposit in the same

currency )

Management fee

(VND)

● 50.000VND/account/month/Monthly/quarterly/6monthly/yearly fee collection period as agreed with customers

● According to each Account Service Package/Agreement

● Small and medium enterprises (SME): 30,000 VND/month if average balance < 1,000,000 VND

● Large enterprises (MM&LC): 100,000 VND/month if averagebalance < 3,000,000 VND

Close an account ● < 1 year:

100.000VND/5 USD

● > 1 year: Free

months from the date

of opening: 100,000 VND/10USD/10 EUR

● Over 12 months: 55,000 VND/5USD/5 EUR

● For foreign currency accounts other than USD/EUR, the account closing fee is 100,000 VND

Cash deposit to the

5.000VND/a pile of money

● Different province:

0,03%,

➔ minimum 20.000VND

➔ maximum 3.000.000 VND

Free

● Different province/city: 0,03%, Min: 15.000đ, Max: 1.500.000đ

Cash withdrawal ● Same province: Free ● Same province : Free ● Same province/city:

➔ Min: 15.000VND,

➔ Max: 1.500.000 VND

Transfer within ACB system:

● Same province/city where the account is opened: Free

● Different province/city: 5,000 VND/orderStatement of account

transactions

● Periodic account statements: Free

● Unscheduled account statement:

➔ < 1y transactions fromthe date of request:

5.000VND/page, min 30.000VND

➔ > 1y transactions fromthe date of request:

5.000VND/page, min 50.000VND

550 VND/ page ● Customers receive at

ACB's transaction counters:

First time: freeSecond time onwards

● Statement:

➔ Documents <12 months: 100,000 VND/time

➔ Voucher 12 months: 300,000 VND/time

● Debit/credit statement, service feereceipt: 1,000 VND/sheet

Authorization

transaction

confirmation

Term deposit & Saving account

Management fee ● 50.000VND/account/m

onth/Monthly/quarterly/6monthly/yearly fee collection period as agreed with customers

enterprises (SME): 30,000 VND/month if average balance < 1,000,000 VND