Sacombank will issue VNĐ5 trillion (US$200.6 million) worth of long-term registered certificates of deposit at attractive interest rates to both individual and institutional investors starting on September 5.

The interest rate for the CD is 7.1 per cent for the first year and a floating rate in subsequent years based on market rates.

It has a minimum face value of VNĐ1 million ($40.13) and a seven-year tenor and is not automatically renewed.

The interest is paid annually.

In addition to the attractive interest rate, another outstanding feature is that customers can withdraw part or all of their balance before maturity, transfer the certificates and use them as collateral for loans if needed at preferential interest rates.

Individual customers who open savings deposits for one to 36 months on the Sacombank Pay app will get interest rates 0.4–0.7 per cent higher than at the counter.

Besides opening accounts at their convenience they can also check transaction history, applicable interest rates, maturity dates, interest payments, etc. at anytime and anywhere.

They can also use the deposits as collateral for quick consumer loans via Sacombank Pay without needing to visit the bank. — VNS