Banks in race to raise interest rates on deposits

By Tat Dat October 13, 2022 | 9:27 p.m. PT

Stacks of money in a bank. Photo by VnExpress/Giang Huy

Interest rates on bank deposits have returned to pre-Covid levels, with VietABank offering the highest rate of 8.7%.

Since the end of September 25 out of 36 banks surveyed by VnExpress increased interest on term deposits, with eight of them increasing it across the board.

Average rates for six month deposits are 6.45% if made over the counter and 6.85% if made online, and 6.54% and 6.93% for nine months .

On 12-month deposits, many banks raised interest by 0.8 percentage points.

But Vietnam Maritime Commercial Joint Stock Bank and Kienlongbank rose 1.2 percentage points.

Today, 19 banks offer an interest rate higher than 7% for one-year deposits made at the counters, and 24 others offer the rate online.

The highest rates are 8.5% by SCB at the counter and 8.7% by VietABank online.

Banks began raising interest rates after the central bank raised operational interest rates for the first time in two years on September 23.

VnDirect Securities said banks are mobilizing more money after securing new credit quotas, not to mention that continued rate hikes by the US Federal Reserve are also putting pressure on interest rates in Vietnam.

Banks said the rate of deposit mobilization has not kept pace with credit growth as interest rates are less attractive than yields on other asset classes.

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