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Vietnam term deposits give 5 to 8 per cent interest for expats
| Published: | 19 Jul at 6 PM |
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Tagged: Visas, Citizenship
In spite of rumours to the contrary, expats living in Vietnam are still allowed to use local banks for term deposits.
The confirmation came from the State Bank of Vietnam after a number of banks began refusing to open savings deposits for expatriates. The banks concerned say they are merely interpreting instructions sent from the central bank on July 5 to restrict savings deposits to Vietnamese citizens. However, another bank circular sent on the same date allows expats who’ve lived in the country for over six months to open term deposit accounts at their local bank. In addition, non-resident foreigners may also take advantage of the facility.
It seems there’s some local confusion over ‘term deposits’ and ‘savings deposits’, as they are two separate concepts, hence the issuance of two separate circulars. Term deposits made by either non-resident or resident expats are required to have a maturity date concurrent with the depositor’s visa end date or other valid documents related to the duration of stay in the country. The interest rates on Vietnamese dong-denominated deposits range between 8.5 per cent and 5 per cent, far higher than any rate offered in the West, making term deposits a popular investment for expats from all over the region.
At the present moment, Vietnam is one of the world’s most desirable expatriate destinations, with a survey conducted late last year estimating an average expat professional income of around $90,408 per year. The survey also revealed 31 per cent of employed expats saw their salaries increase on home country rates by 25 per cent every year. The country is also first in the world as regards encouraging and helping savings via a low cost of living and the enticement of high interest rates for term deposits. Almost three quarters of respondents stated they’d far more disposable income than in their countries of origin.
The confirmation came from the State Bank of Vietnam after a number of banks began refusing to open savings deposits for expatriates. The banks concerned say they are merely interpreting instructions sent from the central bank on July 5 to restrict savings deposits to Vietnamese citizens. However, another bank circular sent on the same date allows expats who’ve lived in the country for over six months to open term deposit accounts at their local bank. In addition, non-resident foreigners may also take advantage of the facility.
It seems there’s some local confusion over ‘term deposits’ and ‘savings deposits’, as they are two separate concepts, hence the issuance of two separate circulars. Term deposits made by either non-resident or resident expats are required to have a maturity date concurrent with the depositor’s visa end date or other valid documents related to the duration of stay in the country. The interest rates on Vietnamese dong-denominated deposits range between 8.5 per cent and 5 per cent, far higher than any rate offered in the West, making term deposits a popular investment for expats from all over the region.
At the present moment, Vietnam is one of the world’s most desirable expatriate destinations, with a survey conducted late last year estimating an average expat professional income of around $90,408 per year. The survey also revealed 31 per cent of employed expats saw their salaries increase on home country rates by 25 per cent every year. The country is also first in the world as regards encouraging and helping savings via a low cost of living and the enticement of high interest rates for term deposits. Almost three quarters of respondents stated they’d far more disposable income than in their countries of origin.
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