Vietnamese e-wallet ZaloPay and CIMB Bank, a highly regarded bank in Southeast Asia, recognising the challenges posed by the global economic downturn, have partnered to offer a new fixed deposit product in Vietnam amidst significant labour market issues.
The unemployment rate for young adults aged 15-24 is at a high of 7.62%, compared to the overall average of 2.28%, and labourers’ wages have stagnated at around VND 7.1 million (approximately US$ 280).
Financial advisors commonly suggest prioritising savings, reducing unnecessary expenditures, and wisely investing to navigate these uncertain times.
Recognising these recommendations, ZaloPay and CIMB Bank’s partnership aims to empower individuals with the means to effectively apply these strategies through their new financial offerings.
At the heart of prudent financial management is the “Pay Yourself First” strategy, endorsed by financial experts. This approach involves setting aside a portion of one’s income for savings at the outset, before addressing any other expenses such as paying bills, dining out, and shopping.
This is in contrast to our habit of paying all bills first and shopping as soon as we get money, while personal savings are a secondary concern. Financial experts all agree that this common practice is incorrect and emphasise the need for an emergency fund.
Paying yourself first ensures that savings are not only accounted for early and reliably, but also become a priority, effectively turning your savings into a monthly expense. You will soon get accustomed to spending on the remaining amount, allowing you to save more effectively while maintaining a portion of your personal fund.
Irrespective of its value, every bit you “pay” for yourself will accumulate into a significant and meaningful sum over time. It’s not just emergencies that paying yourself first protects against. It’s also there for opportunities or long-term financial goals like retirement.
Introducing a Flexible Savings Option
In line with the “Pay Yourself First” strategy, ZaloPay has partnered with CIMB Bank to introduce an innovative savings deposit product “Gui Tiet Kiem” (fixed deposit) via ZaloPay’s e-wallet platform.
A 12-month term will provide you with an interest rate of 6.1%, which is higher than the average interest rate on the market. By offering competitive interest rates, online savings on ZaloPay guarantee customers a stable and predictable income stream throughout the deposit term.
With guaranteed capital preservation, this product promises to be an ideal choice for risk-averse customers seeking a safe and efficient investment channel.
With a minimum deposit of VND 500,000 (approximately US$ 20.32), a standout feature of the product is the flexible withdrawal option, allowing partial or full withdrawal of the principal amount before or at maturity as needed.
To guarantee financial transparency and fairness for customers, the current payment account interest rate will be applied in the event of an early withdrawal.
Customers can choose between tenures of 6, 9, or 12 months, thus accommodating their individual financial needs and plans. The product is designed to meet the needs of both new and existing CIMB Bank’s customers. ZaloPay’s user interface clearly displays the interest rate for each savings package.
In the near future, customers will have the choice to either renew the principal and receive interest via the ZaloPay e-wallet upon maturity or reinvest both the principal and interest to secure the advantageous interest rates for the next term.
By creating multiple online savings accounts, customers can establish various savings objectives, thereby defining clear financial goals for their future.
If the “Pay Yourself First” strategy has been wisely applied, one can rest assured that their financial management efforts and sensible spending will pay off in the future.
Through the launch of the new savings deposit product, ZaloPay and CIMB Bank aim to provide comprehensive, convenient, and secure financial solutions for Vietnamese customers.
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- Source: https://fintechnews.sg/93737/e-wallets/zalopay-and-cimb-bank-roll-out-fixed-deposit-offering-to-simplify-savings/
