(Tiểu luận) topic deposit products and prices of selectedcommercial banks in vietnam figures andissues

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF BANKING AND FINANCE *** GROUP ASSIGNMENT COMMERCIAL BANKING Topic: Deposit products and prices of selected commercial banks in Vietnam: figures and issues Full name : Nguyen Thi Tu Anh– 11217660 Nguyen Hoang Dat- 11211264 Trinh The Hung– 11212481 Hau Ngoc My – 11214031 Tran Thai Son – 11215186 Nguyen Chien Thang – 11215262 Nguyen Hoang Phuong Trinh -11217751 Class: Banking EEP 63 Hanoi – 03/2023 TABLE OF CONTENTS I DEPOSIT PRODUCTS 1 Definition of deposit products Types of deposit products 2.1 Demand deposit: 2.2 Time deposit: Targets of deposit products: .3 Terms of deposit products: .4 II DEPOSIT PRODUCTS AND PRICES OF SELECTED COMMERCIAL BANKS IN VIETNAM: Vietnam Technological and Commercial Joint – Stock Bank: Techcombank 1.1 Benefits .5 1.2 Customers 1.3 Saving accounts 1.4 Deposit account 1.5 Deposit fee 10 1.6 Interest rate 13 1.7 Evaluations .17 Military Commercial Joint Stock Bank: MB Bank .18 2.1 Deposit products for personal customers: .18 2.2 Deposit products for corporate customers:MB Bank SME customer deposit products: .21 III FIGURES AND ISSUES 26 Figures 26 1.1 Deposit in 2021-2022 .26 1.2 Deposit growth rate slows down .27 1.3 Interest rate 2022 .29 Issues 30 2.1 High Interest Rate 30 2.2 Businesses can’t meet the demands of banks 30 Solutions: 31 3.1 About businesses 31 3.2 About banks .32 REFERENCES 34 I DEPOSIT PRODUCTS Definition of deposit products Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long A deposit is money held in a bank account or with another financial institution that requires a transfer from one party to another A deposit can also be the amount of money used as security or collateral for delivery of goods or services Types of deposit products 2.1 Demand deposit: 2.1.1 Definition of demand deposit: A demand deposit is a conventional bank and savings account You can withdraw the money anytime from a demand deposit account without advance notice In a demand deposit account (DDA), a customer can withdraw their money from the account at any time without paying a fee Types of demand deposit accounts include: Checking account: A checking account is a standard demand deposit account Customers can deposit cash or checks into a checking account Some customers may use direct deposit to have an employer automatically deposit their paychecks into a checking account Savings account: A savings account is a demand deposit account that earns interest over time When a customer makes a deposit, the bank pays them a set percentage of interest in exchange for holding their money Money market account: A money market account is similar to a savings account, but customers may write checks to withdraw money Customers may deposit money into this account and withdraw a certain number of times each month Typically, these accounts earn interest similar to or higher than a savings account 2.1.2 Utilities of demand deposit: Convenience: Demand deposits are convenient for everyday transactions such as paying bills, making purchases, and receiving payments With a demand deposit, the account holder can access their funds at any time through a variety of channels such as debit cards, checks, and online banking Safety: Demand deposits provide a safe place to store money, as they are insured by the government up to a certain amount This means that in case of bank failure, the account holder's deposits are protected Liquidity: Demand deposits are highly liquid, meaning that the account holder can access their funds quickly and easily This makes demand deposits a good option for emergency funds or short-term savings Interest: Although demand deposits typically don't earn high interest rates, some banks offer interest on these accounts This can be a useful way to earn a small amount of interest on money that would otherwise be sitting idle in a checking account Overall, demand deposits provide a convenient and safe way to manage money, making them an essential tool for many individuals and businesses 2.2 Time deposit: 2.2.1 Definition of time deposit Time deposits are those with a fixed time and usually pay a fixed interest rate, like a certificate of deposit (CD) These interest-earning accounts offer higher rates than savings accounts However, time deposit accounts require that money be kept in the account for a set period of time Also called term deposit accounts, time deposit accounts are useful for holding savings, and often offer higher annual percentage yields than regular savings accounts Types of time deposit accounts include: Certificate of deposit (CD): Banks call this account a CD, but credit unions may use the term certificate of savings Customers deposit money into a CD for a set amount of time After the time has passed, the customer can withdraw the funds and collect the interest amount Individual retirement account CD: In this time deposit account, customers deposit money to save for their retirement They earn interest over time, and they can withdraw without fees at a certain date 2.2.2 Utilities of time deposit Higher interest rates: Time deposits typically offer higher interest rates compared to demand deposits, as the account holder is agreeing to leave their funds deposited for a fixed period of time This can be a useful way to earn a higher return on savings Guaranteed returns: The interest rate on a time deposit is typically fixed for the entire term of the deposit, which means that the account holder is guaranteed to earn that rate of return regardless of any changes in market conditions Low risk: Time deposits are considered low-risk investments, as the funds are FDIC-insured up to a certain amount This makes them a useful option for those who want to earn a higher return on their savings without taking on too much risk Savings discipline: By agreeing to keep their funds deposited for a fixed period of time, time deposits can help account holders develop a savings discipline and avoid the temptation to withdraw funds before they have reached their savings goals Time deposits can be a useful tool for those who want to earn a higher return on their savings while minimizing risk They can also help account holders develop a savings discipline and reach their financial goals more quickly Targets of deposit products: Deposit services in Vietnam, such as savings accounts, checking accounts, and certificates of deposit (CDs), have different target audiences based on their features and benefits Some common target audiences for deposit services in Vietnam include: Individual consumers: Many deposit services in Vietnam are designed for individual consumers, such as savings accounts and checking accounts These accounts often offer features such as ATM access, online banking, and mobile banking, which make them convenient for everyday transactions Small and medium-sized enterprises (SMEs): SMEs are an important target audience for deposit services in Vietnam Many banks in Vietnam offer accounts specifically designed for SMEs, such as current accounts with overdraft facilities, and savings accounts with higher interest rates Students and young adults: Many banks in Vietnam offer accounts specifically designed for students and young adults, with features such as free ATM withdrawals, discounted transaction fees, and other benefits tailored to the needs of this group Foreigners and expatriates: As Vietnam's economy continues to grow, the country has become an increasingly popular destination for foreign investors and expatriates Many banks in Vietnam offer accounts specifically designed for foreigners, with features such as foreign currency deposits, international money transfers, and other services tailored to the needs of this group Seniors: Some deposit services in Vietnam are designed specifically for seniors, offering features such as free checks, discounted safe deposit boxes, and other benefits tailored to the needs of older adults Terms of deposit products: Besides the terms defined in the Client Agreement, the following capitalized terms are used in the Conditions with the following meanings: Deposit is an amount of money that the Client deposits with the Bank under the conditions specified by the deposit transaction; Deposit Transaction is a transaction whereby the Client undertakes to deposit a certain amount of money with the Bank for an agreed period and the Bank undertakes to refund such amount to the Client under the agreed conditions; Start Date of the Deposit is the banking day specified by the deposit transaction when the Client undertakes to place the deposit with the Bank; Expiry Date of the Deposit is the banking day specified by the deposit transaction when the Bank undertakes to refund the deposit to the Client; Banking Day is any calendar day other than a Saturday, Sunday or a national holiday or a public holiday in the Republic of Estonia Transaction Account is the Client’s bank account with the Bank that is used for settlements associated with the deposit transaction The term of deposit refers to the length of time that the account holder agrees to keep their funds deposited in a time deposit account, such as a certificate of deposit (CD) The term of deposit can range from a few months to several years, depending on the account holder's preference and the terms offered by the bank The length of the term of deposit can affect the interest rate offered on the account Generally, longer terms of deposit will offer higher interest rates, as the account holder is agreeing to keep their funds deposited for a longer period of time Shorter terms of deposit will typically offer lower interest rates, as the bank has less certainty about how long it will be able to use the funds When considering the term of deposit for a time deposit account, it is important to consider one's financial goals and liquidity needs If the account holder anticipates needing the funds in the near future, a shorter term of deposit may be more appropriate If the account holder is saving for a longer-term goal, Document continues below Discover more from: - neu NHTM NHTM12333 Đại học Kinh tế… 11 documents Go to course NHTM1121 - Ngan8 hang-thuong-mai… NHTM - neu None Luật tổ chức tín 50 dụng - Just a… NHTM - neu None Bài tập DV NHTM 12 Just a practice… NHTM - neu None Đề thi NHTM 3tc ngày 15-12-2021 LMS NHTM - neu None Nhtm2 - nhóm(?) NHTM - neu None Flexible term AAAAAAAAAA such as a down payment on a house or a child's college education, a longer term None NHTM - neu of deposit may be more appropriate It is important to note that if the account holder withdraws funds before the end of the term of deposit, they may be subject to penalties and fees, which can reduce the amount of interest earned on the account Therefore, it is important to carefully consider the term of deposit and ensure that the funds can be safely committed for the length of the term II DEPOSIT PRODUCTS AND PRICES COMMERCIAL BANKS IN VIETNAM: OF SELECTED Vietnam Technological and Commercial Joint – Stock Bank: Techcombank 1.1 Benefits - Interest rates: Competitive Interest rates - Convenient experience: Speedy and simple process - Safe and Secure: Advanced security technology - 24/7 Support: Instant results on your needs 1.2 Customers Customers are resident or non-resident Vietnamese citizens or foreigners who have been allowed to reside in Vietnam for months or more 1.3 Saving accounts 1.3.1 Term deposit 1.3.1.1 Benefits for personal - Easy and Convenient: Save anytime, anywhere within one minute on your mobile, or deposit/withdraw your savings easily at all Techcombank branches - Flexible interest payment methods: Pay interest at maturity, immediately upon deposit, monthly and quarterly - Flexible terms: Diverse terms tailored to every customer's needs - Attractive interest rate: Competitive interest rate for each term in the market 1.3.1.2 Features Ordinary savings Phat Loc savings Savings with prepaid interest Mobile and Internet banking At the counter Mobile and Internet banking At the counter VND VND, USD, EUR VND VND, USD EUR Minimum deposit million VND or 100 foreign currency units million VND million VND or 500 foreign currency units million VND million VND or 500 foreign currency units Term From to 36 months From 1-3 weeks, from 1-36 months From to 36 months From 1-3 weeks, from 1-36 months From to 36 months At maturity At maturity At maturity Immediately upon saving Not allowed to make final settlement Allowed to make final settlement before maturity and get non-term interest Transaction channels At the counter VND, USD EUR, UD, Currency GBP, JPY SGD Interest payment method At maturity, periodically (Monthly/ Quarterly) Allowed to make final settlement before Early maturity settlement and get non-term interest 1.3.1.3 Terms of Use  Transactions at the counter:  VND depositors: Resident or non-resident Vietnamese citizens  Foreign currency depositors: Resident Vietnamese citizens  Online transactions  Depositors: Resident or non-resident Vietnamese citizens and foreigners who have been allowed to reside in Vietnam for months or more 1.3.2 Flexible deposit 1.3.2.1 Benefits - Smart saving: Automatically suggest a saving itinerary according to the selected goal - Flexible deposit: Deposit anytime, anywhere with any amount or set a periodic schedule to send automatically - Optimal interest rate: The more and sooner customer deposit, the higher the interest rate will be 1.3.2.2 Categories - Nhu Y Savings: Nhu Y Savings is a Techcombank's latest online deposit product with the integration of optimal, smart, automatic solutions and accompanies with customers in every journey to reach the goal so that they can enjoy life with peace of mind - Customers:  Individuals who have a regular monthly income and want to form a habit of saving for themselves  Customers with an accumulation plan for short- term or long-term goals  Customers who are looking for balance solution and personal finance management TRANSACTION CHANNEL Online CURRENCY VND MINIMUM DEPOSIT First deposit: at least 100,000 VND at the time of opening Next deposits: unlimited INTEREST RATE - The interest rate is floating and regulated according to Techcombank's interest rate table periodically - The interest is calculated based on actual deposit balance at the end of each day - Applicable interest rates includes: listed interest rate and adjusted