Deposit rate is better than sgp, can consider transfer fund there 
Banks paying out to depositors while charging borrowers more
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VietNamNet Bridge – Commercial banks says they are having to dodge the law by offering higher-than-allowed interest rates to depositors while charging borrowers more.
They claim that if they didn’t then there’d be left with only limited funds to lend out to assist businesses.
While the ceiling lending interest rate is 12 percent per annum, businesses are paying 15 percent, including a 3 percent “loan fee”. The State Bank of Vietnam instructs banks not to pay more than 10.5 percent for deposits, but banks still more to attract more deposits.
One director of a business said that he was told by a bank that he would have to pay 15.6 percent per annum if he wanted to receive a loan. Meanwhile, the additional 3.6 percent is charged as assessment fees, mortgaged asset management fees and other kinds of expenses. The director said that previously, fees were equal to just half of current levels at 2.5-3 percent.
In other cases, businesses do not have to pay additional fees to lenders, but they still have pay more for loans. A deputy director of a garment company in HCM City said he signed a contract on borrowing 10 billion dong from a bank, but he received eight billion dong only, while the other two billion dong were deposited at the bank as the collateral for the interest the business has to pay.
Nguyen Bang Tam, deputy chairman of the Listing Companies’ Club, said that a lot of businesses are complaining that additional fees are making production costs higher.
The ‘fee collection technology’
Most commercial banks have admitted that they cannot provide loans at the interest rate of 12 percent as set by the State Bank. It is because they cannot mobilize capital at 10.5 percent as stipulated by the State Bank. They have to pay higher to depositors if they want to have capital.
Commercial banks are now sharing with each other their experiences on how to collect additional fees from borrowers and avoid the punishment from the State Bank. Therefore, the “fee collection technology” has become increasingly sophisticated.
A director of an import-export company in HCM City said he was told to sign a “finance consultancy contract”. He had to write a document outlining a business plans complete with problems. He was then requested to ask for the bank’s consultancy assistance. With the contract, he had to pay 1 percent worth of the consultancy fee, which, in fact, is the lending interest rate.
Vietnam is among the 10 countries in the world which have the highest lending interest rates. Many claim that the high interest rates are contrary to the Government’s effort to stimulate the national economy.
The inflation rate in Vietnam is less than seven percent, while the deposit interest rate is up to 10.5 percent, and lending interest rates are between 12 and 15 percent per annum.
The State Bank of Vietnam says it has realized the “abnormality” of the interest rate performance. Therefore, it has instructed banks not to apply overly high interest rates. However, it seems that both bankers and businesses do not want to follow the instructions.