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

NATIONAL ECONOMIC UNIVERSITY ADVANCED EDUCATION PROGRAM — TOPIC DEPOSIT PRODUCTS AND PRICES OF SELECTED COMMERCIAL BANKS IN VIETNAM: FIGURES & ISSUE Course name: Commercial Banking Member : Nguyễn Vân Trang - 11219217 Mai Thị Hương Giang - 11211766 Đặng Thanh Mai - 11213626 Introduction about 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 for Construction of Vietnam, then renamed Bank for Investment and Construction of Vietnam (1981 - 1990), Bank for Investment and Development of Vietnam (1990 2012), and Joint Stock Commercial Bank for Investment and Development of Vietnam (since 2012) During the period, BIDV comprehensively completed its business targets, strengthening competitive capacity, becoming the leading commercial joint stock bank 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 the group of state-owned banks With more than 50% capital from the state, the rest is contributed by enterprises Established in 1988, VietinBank is currently holding the leading role of a leading bank in the Vietnamese economy Vietinbank has a strongly developed network with 148 branches and member companies Along with nonbusiness units, and more than 1,000 transaction offices in 63 provinces/cities nationwide VietinBank is the first and only Vietnamese bank in Europe with 02 branches in Frankfurt and Germany With the largest capital scale, the best asset quality and the highest brand value In consecutive years 2012 and 2013, VietinBank was voted by Forbes 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, continuously growing to become one of the leading joint stock commercial banks ACB aims to provide financial products and services to individual and corporate customers through traditional transaction channels, while constantly developing technology systems to help customers transact quickly easily via electronic channels ACB currently has 86 branches 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 big banks in the top 10 most prestigious commercial banks in Vietnam 2023 evaluated by some factors such as: credit turnover, scale of banking services provided, growth rate, prices of services and products, income from services provided In addition, the main websites of banks are scientifically and clearly designed, providing complete information for research and data search on products and product prices that the studied banks provide to compare with each other Deposit products offered by the studied banks 2.1 Personal customers a) BIDV ● Current account: ➢ Currencies: VND, USD, EUR, AUD, CAD, CHF, CNY, DKK, GBP, HKD, JPY, NOK, SEK, SGD ➢ Minimum balance: VND50,000; USD10; EUR10 Minimum balance is not required for other currencies ➢ Conditions: Vietnamese citizens and foreign individuals; The accounts of non-resident individuals and foreigners residing in Vietnam shall be managed in accordance with laws on foreign exchange ➢ 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 ➢ Tenors: to 24 months ➢ Interest rate: 4,9 - 7,2% ➢ Interest payment method: At maturity ➢ Conditions: ❖ Vietnamese citizens being non-residents, foreign individuals being residents, foreign individuals permitted to reside in Vietnam for at least months ❖ Residents and non-residents may not be joint term depositors Organizations and individuals may not jointly deposit term deposits in foreign currencies For joint term deposits, depositors may send and receive payments for term deposits via the joint current account of all depositors ➢ 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: week to 60 months ➢ Interest payment method: At maturity, upfront, monthly, quarterly ➢ Conditions: VND savings - Vietnamese citizens; Foreign currency savings Vietnamese residents ➢ Characteristic: ❖ Account balance can be used to certify financial capacity for the purpose of tourism, study abroad, etc ❖ Time savings account can be used to pay the loan or to transfer to BIDV accounts of the owner or co-owner ● Certificates of deposit ➢ Currencies: VND ➢ Minimum face value: VND 1,000,000 Any face value that is higher than the minimum one must be the multiple of VND 100,000 ➢ Tenors: 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 b) Vietinbank ● Current account: ➢ Minimum balance : 100,000VND for VND deposit accounts and 30 USD for foreign currency deposit accounts ➢ Interest rate: 0,1% ➢ Condition : ❖ Individuals who are citizens of Viet Nam; foreigners who have legal capability and civil action capacity in accordance with the law of their nations ❖ For individuals who are not old enough to have legal rights and responsibilities by law, lacking civil action capacity, or limited of such ability as regulated by the law: All procedures related to account opening and use must be done by supervisors and legal representatives ➢ Characteristic: ❖ Time is saved thanks to no counting of money, no risk of fake notes ❖ Easy account opening procedure, simple transaction method, competent bank staff ❖ No fee for opening accounts ❖ Customers can use the account as mortgages, guarantee for loans at VietinBank ❖ Customers can deposit/withdraw the accounts either with cash or by transfer when using check, wire transferring, secured check, payment authorization, collection authorization, etc ❖ Customers can transfer funds from current accounts to savings accounts and vice versa ● Term deposit ➢ Currencies: VND, USD, EUR ➢ Minimum Balance: 100,000 VND, 10 USD or an equivalent ➢ Tenor: Flexible terms of 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 ➢ Condition: ❖ VND account: Vietnamese and foreign individuals living and working legally in Viet Nam ❖ Foreign currency account: Local residence individuals ➢ Characteristic: ❖ Customers could deposit or withdraw cash from accounts at any transaction place of VietinBank during working hours; Customers could add to the account balance on the term-ending date without having to make a new account ❖ 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 Document continues below Discover more from: hàng Ngân thương mại NHTM1121 Đại học Kinh tế… 999+ documents Go to course Bài tập Ngân hàng 21 thương mại gửi lớ… Ngân hàng… 100% (13) Dàn ý phân tích nhân vật Võ Tịng Ngân hàng thương… 94% (17) đề cương ôn tập 41 82 ngân hàng trung… Ngân hàng thương… 100% (5) Luận Văn Phát Triển Cho Vay Khách Hàn… Ngân hàng thương… 100% (5) Luận Văn Quản Trị 103 ❖ Could be used as collateral for loans at VietinBank Rủi Ro Tín Dụng Tại… Ngân hàng thương… 100% (4) ❖ Ownership is transferable and ownership form could be selected ❖ Authorization for others to withdraw cash from account (per time or Bank Management & frequently) is available ❖ VND deposits are insured Financial Services… ❖ Automatically receive due interest from term deposits/valuable papers 768 Ngân hàng thương… 100% (4) 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 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 ➢ Interest rate: 4,9 - 7,5% ➢ Tenor: to be announced periodically (1 to 36 months) ➢ Characteristic: ❖ 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 a) BIDV ● Current account: ➢ Currencies: VND, USD, EUR and other foreign currencies ➢ Minimum balance: VND 1,000,000/ USD 100/ EUR 100 ➢ Interest rate: 0,2% ➢ Interest payment: Interest amount is calculated on day-end balance and accumulated daily Payments are made automatically on the 25th every month ➢ Basis for interest calculation: A year of 365 days, a month of 30 days VND ➢ Characteristic: ❖ 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 b) Vietinbank ● Current account: ➢ Currencies: VND, USD, EUR ➢ Interest rate: 0,2% ➢ Characteristic: ❖ 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 ● Certificate of deposit: ➢ Interest rate: 7,9 -9% ➢ Interest payment : month/ year ➢ Minimum balance: 1,000,000 VND ➢ Characteristic : ❖ 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 c) ACB ● Current account ➢ Currencies: VND and foreign currency ➢ Interest rate: 0,2% (VND 10M - 20B) ➢ Interest payment: interest will be automatically credited to the customer's account on the 25th of every month If the business settles the payment within 02 days, it will not receive interest ➢ Characteristic: ❖ Convenience: opening one place can transact in many places with simple procedures, fast processing time ❖ Safety: Payment transactions of the Company are performed accurately, with absolute security ❖ Profitable: Enterprises flexibly use cash flow but still enjoy interest rates on the account ● 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 ➢ Interest rate: 4,9 - 7,5% ➢ Deposit term: ❖ VND: 1/ 2/ weeks, 1/ 2/ 3/ 6/ 9/ 12/ 13/ 15/ 18/ 24/ 36 months ❖ USD: 1/ 2/ weeks, 1/ 2/ 3/ 6/ 9/ 12 months ❖ JPY: 1/2/3/6/9/12 months ➢ Characteristic: ❖ 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 ● Certificate of deposits ➢ Certificate of deposit name: ACB 1st certificate of deposit 2020 (ACB, CCTG.2020.01) ➢ Maximum total issuance value: VND 2,200,000,000,000 (two trillion VND billionaires) ➢ 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 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 Prices of deposit products offered by the studied banks 3.1 Personal customers: BIDV Vietinbank ACB Current account Open an account Free Free Free Current account management fee (VND) ● < 2m: 5.000 VND/month ● 2-10m: 3.000VND/month ● >10m: free ● >200,000 VND ● No account management fees Close an account ● 50.000VND/5USD/acc ● Foreign currency account: 100,000 VND/ account ● VND account : 50,000 VND / account ● Priority account: 200.000VND ● Merchant Account: 200.000VND Cash deposit to the main account/ Internal transfer between accounts Free Free Free Cash withdrawal from VND payment account ● In the same province/city:Free ● In the difference province/city: 0.03% minimum 10.000VND ● Same province : Free ● In the difference province: ● : 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 VND Statement of account transactions ● 3.000VND/page ● Minimum 10.000VND ● 2,000 VND/ page ● Minimum: 10,000 VND ● In the last 24 months, the first statements will be free, from the 3rd time the fee is 5,000 VND/page Authorization transaction confirmation 50.000VND/account 50,000 VND / time 50,000 VND/time Blockade/temporary lock/cancellation of temporary lockdown at customer request 50.000VND/account 100,000 VND/time ● 500.000d/3accounts/ti me; ● 50,000 VND / each account from the 4th account onwards Term deposit & Saving account (online) Open an account Free Free Free Account maintenance fee Free Free Free 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 3USD ● 0,03% x amount of withdrawal ➔ Min: 10.000VND ➔ Max: 1.000.000VND ● In foreign currency: ➔ Min : 50.000 VND ➔ Max : 2.000.000 VND ● VND: 0,03%; ➔ Min: 15.000đ, ➔ Max: 1.000.000đ ● USD: 0,4%; ➔ Min: 3USD Free Free Withdrawal (partial or final), wire transfer, money transfer within 03 working days from the date of deposit Provide monthly account statement Blockade/temporary lock/cancellation of temporary lockdown at customer request ● 50.000VND/account ● 100.000 VND/ time Free ● 500.000d/3 savings cards/time ● 50,000 VND / each account from the 4th account onwards 3.2 Corporate customers: BIDV Vietinbank ACB Current account Open an account Free Free Free ( Open more accounts: 1,000,000 VND/account Time deposit in the same currency ) Management fee (VND) ● 50.000VND/account/m onth/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 average balance < 3,000,000 VND Close an account ● < year: 100.000VND/5 USD ● > year: Free ● 100,000 VND ● Accounts less than 12 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 main account/ Internal transfer between accounts ● Normal transaction: Free ● Small denomination deposit transaction (from 5,000 VND or less, quantity from 100 sheets or more): 5.000VND/a pile of money ● Different province: 0,03%, ➔ minimum 20.000VND ➔ maximum 3.000.000 VND Cash withdrawal ● Same province: Free Free ● Same province : Free ● Same province/city: Free ● Different province/city: 0,03%, Min: 15.000đ, Max: 1.500.000đ ● Same province/city: from VND payment account ● Different province: 0.03% ➔ Min: 20.000VND ➔ Max: 2.000.000VND ● Different province : ➔ : 200,000 VND ➔ max: 2,000,000 VND Statement of account transactions ● Periodic account statements: Free ● Unscheduled account statement: ➔ < 1y transactions from the date of request: 5.000VND/page, 30.000VND ➔ > 1y transactions from the date of request: 5.000VND/page, 50.000VND 550 VND/ page Authorization transaction confirmation ● : 100,000 VND Free ● Different province/city: 0,03%, ➔ 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/order ● Customers receive at ACB's transaction counters: First time: free Second time onwards ● Statement: ➔ Documents