Big banks hike deposit interest rates

Illustrative image. (Photo: VNA)

Hanoi - Large banks are starting to join the deposit interest rate hike race along with small- and medium-sized banks due to rising capital demand pressure after a long time staying out of the game.

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

Accordingly, customers who deposit money at the bank for 12 months to 24 months will enjoy a rate of 5.6 percent per year, up 0.1 percentage points from last month.

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

At Vietcombank, the online deposit interest rate also added 0.1 percentage points per year compared to over-the-counter deposits.

Many small- and medium-sized banks earlier this year increased their rates by 0.3-0.6 percentage points.

Before the pandemic, the highest interest rate for 12-month savings was 7 percent per year. Now, many banks are keeping it at 6.7-6.9 percent , whereas some have lifted it to more than 7 percent. As for the interest rate for short-term deposits of less than six months, banks are applying the ceiling rate of 4 percent for all terms.

SCB is currently applying the highest rates in the banking system on both over-the-counter and online channels. In particular, the 12-month savings rate at the bank’s over-the-counter channel is currently 7.3 percent. Meanwhile, if depositing online, depositors at SCB are given an additional 0.15-0.3 percentage points, raising the maximum interest rate to 7.55 percent per year.

Kienlongbank offers a rate of 7.2 percent on a 24-month term, and 7 percent per year on an 18-month term, 6.95 percent per year on a 15-month term, and 6.5 percent per year on a 12-month term.

NamABank is listing its over-the-counter savings rates at 6.5 percent per annum on a 12-month term and 6.7 percent per annum on terms from 18 to 23 months, but it is offering an additional interest rate of 0.7 percentage points if customers deposit online.

Accordingly, via the online savings channel, customers enjoy rates of 7.2 percent per annum on a 12-month term and 7.4 percent per annum on terms of above 16 months.

This is the highest interest rate level that NamABank applies to deposits of individual customers, and the second-highest interest rate in the market, after SCB.

Similarly, the savings interest rates over the counter of PVcomBank are just 6.3 percent per annum on a 12-month term and 6.65 percent per annum on terms of 15 months or more, but via online channels, the bank is willing to pay rates of 6.7 percent per annum on a 12-month term and 7.25 percent per annum on terms from 18 months or more.

VietABank currently lists its online savings rates at 6.95 percent per annum on 12-month terms and 7.2 percent per annum on 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, are also listing the rate at 7 percent per year.

Banking expert Nguyen Tri Hieu told Vietnam News that to attract idle money, many banks have increased deposit interest rates significantly over the last year, adding that savings interest rates were on the rise and likely to go up further in the coming months.

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

Saigon Securities Incorporation’s research division forecast deposit interest rate might be adjusted by a further 1-2 percent this year.