Bank of Taiwan reveals plan to lure Chinese yuan deposits

By John Liu ,The China Post

TAIPEI, Taiwan — In response to the central bank’s requests, Bank of Taiwan, along with a number of banks, has increased interest rates for Chinese yuan deposits up to 3.18 percent for a one-year certificate of deposit. In order to qualify for this relatively high interest rate, there may be other requirements attached such as a designated deposit amount, deposits of other foreign currencies, and withdrawal of certificate of deposits (CD) in New Taiwan dollars. Starting on Oct. 1, Bank of Taiwan also provided favored Chinese yuan exchange and savings offers. Those who terminate their one-year or longer CD contracts at Bank of Taiwan before Sept. 18 and transfer the fund into a one-year Chinese yuan CD may also enjoy favored interest rates, with an annual rate of up to 2.45 percent for a deposit of 20,000 yuan or more, and up to 2.8 percent for a deposit of 100,000 yuan or more. In the case of Cosmos Bank, it has rolled out a special U.S. dollar/Chinese yuan CD program. A 2.8-percent interest rate is available for Chinese yuan deposits and a 1.3-percent rate for U.S. dollar deposits through a new one-year term CD. Fund transferred from a CD program at Cosmos Bank to this special U.S. dollar/Chinese yuan CD will enjoy interest rates of up to 2.88 percent and 1.38 percent for Chinese yuan and U.S. dollar deposits, respectively. This special CD program is available until Nov. 30, and no transaction fees will be applied, Cosmos Bank said.

Standard Chartered Bank is also rolling out special interest rates for deposits in Chinese yuan and U.S. dollars, with a 2.8-percent interest rate applicable to one-year Chinese yuan CDs, and three-month, six-month and one-year special interest rates for U.S. dollar deposits, of which a 1.1-percent interest rate is applicable for one-year terms.

Starting in October, First Bank is also providing a high interest savings rate for Chinese yuan deposits, with a one-year CD rate of up to 3.18 percent for a deposit of 100,000 yuan or more. However, deposits in Canadian or Australian dollars are also required in order to qualify for this special offer. From October to December, for a CD amounting to 20,000 yuan or more, Changhwa Bank is rolling out 2.6-percent, 2.9-percent and 3-percent savings rates for three-month, six-month and one-year terms, respectively. The bank also indicated that those who terminate a CD contract in order to transfer funds into a CD in Chinese yuan would not be penalized with a reduced interest rate at the original CD. City Bank is also launching a time-limited CD program in October. Interest rates of 3.88 percent, 3.08 percent, and 1.88 percent are applicable to CD in Australian and New Zealand, Chinese and U.S. currencies, respectively. There is no need to make additional investments in order to qualify for this special offer.