Banks raise interest rates to attract depositors | Bank and finance
Notably, a number of commercial banks are beginning to join the race to raise deposit interest rates with small and medium banks, they have adjusted a deposit interest rate of more than 7 % for a period of 12 months.
Specifically, customers who deposit money at CBBank for 12 months enjoy a rate of 7.45% per annum and 7.5% for online savings customers from August 6, while that depositors of Sai Gon Commercial Bank (SCB) enjoy an annual interest rate of 7.3% – 7.6% for a term of 12 months on over-the-counter and online channels.
Many other banks such as VPBank, KienlongBank, LienVietpostBank, NamABank and Techcombank also charged deposit interest rates of over 7% with terms of 12 months or longer.
Commercial banks not only adjusted interest rates for long-term deposits, but also for short-term deposits of less than 12 months or even 1-3 months to increase interest rates by 0, 2 to 0.5 percentage points.
Currently, many banks charge interest rates of around 4% for deposit periods of 1-3 months. In addition, commercial banks such as Vietcombank, BIDV and Agribank also raised deposit interest rates by 0.1 to 0.2 percentage points under most conditions.
Although commercial banks have not been able to accelerate lending in the past because the line of credit has not been eased, data from the State Bank (SBV) showed that at the at the end of July 2022, credit to the economy had further increased by 9.27%. % from the beginning of the year, the highest level in the last five years when growth in deposits was slightly above 4.5%; as a result, banks had no choice but to resort to raising the deposit rate for raising capital.
Many financial experts have said that when the SBV extends more line of credit in the near future, the race to raise deposit interest rates among commercial banks will be hotter. Analysts at SSI Securities Company predict that in the last four months of 2022, when commercial banks are allowed to extend credit growth limits, the demand for capital injection into the banking sector will increase and will also increase the interest rate of 0.5 to 0.7%. points.
Therefore, for the year, the interest rate on deposits can increase by 1-1.5 percentage points, which makes the interest rate on loans for new disbursements higher by 1-2 percentage points to that of 2021. However, it normally takes 1-2 quarters for the lending interest rate to adjust to the deposit rate.
The sharp rise in bank interest rates makes the deposit channel attractive for investors and depositors. Specifically, according to the State Bank, in the first five months of 2022, the total balance of residential customer deposits in the bank reached nearly VND 5.569 trillion, an increase of 5.07 percent. compared to the end of last year, which is equivalent to a net increase of 268.480 billion VND. Compared to the same period in 2021, deposit growth for this customer group nearly doubled.
On average, in the first five months of the year, people deposited nearly VND 1.79 trillion in commercial banks every day.
Meanwhile, in the first six months of 2022, data from the State Securities Commission also shows that trading liquidity in the stock market has now declined to VND10 trillion-VND12 trillion per year. day, down about 60% from the end. of 2021 with 30 trillion VND-35 trillion VND per day.
Real estate experts also said that the real estate market is slowing down due to banks tightening credit or high interest rates on loans; thus, many investors have turned to holding cash flowing into the savings deposit channel while waiting for investment opportunities.
In addition, Circular SBV 04/2022 stipulated that if part of the deposit is withdrawn before maturity, the remainder will still benefit from the same interest rate as before instead of only the interest rate on open-ended deposits. , which created more attractiveness for the deposit channel. in commercial banks.
Client Ha Huyen from Thu Duc City explained that she is currently making deposits in banks for long-term deposits to get the best interest rate, although she invests in many channels.
Moreover, she said that when she suddenly needs money when she finds an investment opportunity, she can withdraw the money at any time, but she still enjoys the same interest rate.
Many commercial banks have also recognized that long-term savings customers have increased significantly as a result of Circular 04/2022 policy; not to mention the special preferential policies of many banks. Specifically, the Orient Commercial Bank (OCB) not only helps customers to withdraw part of the principal for deposits from August 1 when Circular 04/2022 comes into effect, but also applies to all deposits. before August 1.
Mr. Du Xuan Vu, deputy director of OCB’s retail division, said that allowing early withdrawal of deposits not only benefits customers, but also creates favorable conditions for the bank to attract medium and long-term deposits. as well as diversifies products to attract and increase deposits. of the population, thus meeting the borrowing needs of clients.