State-run Mega International Commercial Bank said that it would offer high interest rates for time deposits denominated in US dollars for a limited time in August 2022, as local lenders seek to take advantage of growing investment interest in the greenback.
The banking arm of Mega Financial Holdings Co said that it would offer interest rates of 7 percent for two-month time deposits denominated in US dollars, in an effort to stay competitive with peers that offer similar rates.
The rates would be in effect from Aug. 1 to 5 for individual deposits of US$1,000 to US$3,000 per account, the bank said, adding that it would set a cap of US$3 million for the campaign. The offer, limited to digital accounts and online currency exchanges, aims to gain and retain customers over the Internet, tap the wealth management business and stimulate investment interest, the bank said.
Local investors have shown a rising interest in US dollar assets this year after the US Federal Reserve in March started increasing interest rates to fight inflation, Mega Bank said.
Deep price corrections in global bourses have driven stock investors to the sidelines and prompted them to park their money in time deposits, it said. US dollar-denominated savings deposits have become a standard component of investors’ portfolios, the bank said.