Term savings with interest rate adjusted to increase based on the base rate of the State Bank
(Updated at 13:58, 16/9/2010)

This is a savings product with full interest payment at maturity: The interest rate on savings is automatically adjusted up when the corresponding base rate of the State Bank of Vietnam increases, but not reduced when the base rate is lower.


Main features

 

-          Term: fixed term, in month, minimum 1 month, maximum 6 months;

-          Currency: VND;

-          Minimum savings amount: VND 5,000,000;

-          Deposit: one-off deposit at counter.

-          Withdrawal: one-off withdrawal at counter.

 

Principle amount at maturity = principal amount converted into AAA gold bar at deposit x Agribank gold bid rate at the date of maturity.

 

o        Withdrawal at maturity: customers enjoy all the interest that the bank has committed.

o        Early withdrawal: interest is paid as per prevailing demand interest rate applicable at the time of withdrawal for the actual amount balance and real savings time.

o        Late withdrawal: if customers do not withdraw at maturity, Agribank shall automatically transfer all the balances (principle amount plus interest) to a new corresponding term with new applicable interest rates. Where there is no new corresponding term then the interest rates shall be rates of the next best lower term.


Fees

 

-          No service charge and early withdrawal fees.

 

Interest

 

-          Interest rates are adjusted by base rate of the State Bank of Vietnam.

-          Term interest rate corresponds to the savings term, published at transaction offices of Agribank (Interest = Base rate + percentage %).

-          When the State Bank of Vietnam announced to increase the base rate, interest rates on savings will be adjusted to be increased accordingly and new rates shall be published at transaction offices of Agribank.

-          Base rate increases → interest rates on savings increases accordingly

-          Base rate decreases → customer is entitled to former interest rate and the next best rate.

-          Interest calculation:

Interest = Principle x Interest rate x Term


Benefit

 

-          Customers can transfer ownership of the savings book when it is not due to preserve interest payment.

-          Savings books can be used as borrowing security or loan guarantee for the 3rd person at any Agribank branches or financial institutions.

-          Savings books can be used by customers as financial certificates or used as security for loans for relatives’ study/work abroad.

 

Conditions of use and How to apply: the same asFixed term deposit with full interest paid at maturity

 

Applied at Operations Centre of Agribank