Tuesday,  Sep 25, 2018,10:26 (GMT+7) 0 0
Banks change interest rate calculation
The Saigon Times Daily
Friday,  Jan 5, 2018,16:45 (GMT+7)

Banks change interest rate calculation

The Saigon Times Daily

HCMC – Commercial banks have changed the way interest rates are calculated, with the annual rate applicable to 365 days instead of 360, the Vietnam News Agency reports.

Deposit accounts at the Vietnam Export-Import Commercial Bank (Eximbank) opened from January 1 onwards have their annual interest rates calculated in 365 days.

At Southeast Asia Commercial Bank (SeABank), interest is calculated on the basis of actual balance, interest rates, and number of days in the interest calculation period.

Deposit accounts newly opened or renewed from January 1 onwards follow the new interest calculation rule. Meanwhile, other deposits which fall due from January 1 are subject to the previous agreements.

Bank leaders said the move is to follow the State Bank of Vietnam’s Circular 14/2017 on calculating interest rates in borrowing and lending activities between credit institutions and customers.

The one-year agreement of 365 days is aimed at creating the basis for commercial banks to comply with legal documents, thereby creating consistency in calculating interest rates in the banking system. It also helps avoid disputes and facilitates banking transactions.

Depositors now receive less interest than the previous calculation method, according to bankers.

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