Big banks raise interest rates on deposits

VIETNAM, July 9 –

HÀ NỘI — Big banks are beginning to join the race to raise deposit interest rates with small and medium-sized banks due to mounting capital demand pressure after a long period of non-participation.

Earlier this month, Agribank adjusted interest rates for long-term deposits.

Thus, customers who deposit money in the bank for 12 months to 24 months will benefit from a rate of 5.6% per annum, up 0.1 percentage point from last month.

Similarly, BIDV also announced this month a new interest rate change with an increase of 0.1 percentage point to 5.6% per annum for deposits of 12 months to 36 months.

At Vietcombank, the interest rate for online deposits has also increased by 0.1 percentage point per year compared to OTC deposits.

At the beginning of this year, many small and medium-sized banks raised their rates by 0.3 to 0.6 percentage points.

Before the pandemic, the highest interest rate for 12-month savings was 7% per annum. Today, many banks maintain it at 6.7-6.9%, while others have raised it to over 7%. As for the interest rate for short-term deposits of less than six months, the banks apply the ceiling rate of 4 per cent for all durations.

SCB currently charges the highest rates in the banking system on OTC and online channels. In particular, the 12-month savings rate in the bank’s OTC channel is currently 7.3%. Meanwhile, if they deposit online, SCB depositors receive an additional 0.15 to 0.3 percentage points, bringing the maximum interest rate to 7.55% per annum.

Kienlongbank offers a rate of 7.2% on a 24 month term, 7% per annum on an 18 month term, 6.95% per annum on a 15 month term and 6.5% per annum on a period of 12 months. month term.

NamABank posts its over-the-counter savings rates at 6.5% per annum for 12-month terms and 6.7% per annum for 18-23 month terms, but offers an interest rate additional 0.7 percentage points if customers file online.

Thus, via the online savings channel, customers benefit from rates of 7.2% per year over a period of 12 months and 7.4% per year over a period of more than 16 months.

This is the highest level of interest rate applied by NamABank to individual customer deposits and the second highest interest rate in the market, after SCB.

Similarly, PVcomBank’s over-the-counter savings interest rates are only 6.3% per annum for 12 months and 6.65% per annum for 15 months or more, but through online channels, the bank is willing to pay rates of 6.7% per annum for a term of 12 months and 7.25% per annum for terms of 18 months or more.

VietABank currently lists its online savings rates at 6.95% pa for 12 months and 7.2% pa for 15 months or more. Meanwhile, for over-the-counter deposits, the rates are 6.6 percent per annum and 6.9 percent per annum.

Many other banks, such as BaoVietBank, VietCapitalBank, CBBank, VietBank and LienVietPostBank, also show the rate at 7% per annum.

Banking expert Nguyễn Trí Hiếu said News from Việt Nam that to attract idle money, many banks have dramatically increased interest rates on deposits over the past year, adding that interest rates on savings were rising and likely to rise further In the coming months.

“Savings interest rates in the remaining months of the year will rise due to higher capital demand and inflationary pressures as well as stiffer competition from other investment channels such than real estate and securities to attract idle capital flows,” he said.

The research division of Saigon Securities Incorporation predicts that the interest rate on deposits could be adjusted by another 1-2% this year. —VNS

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