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Many banks hike deposit rates
The Saigon Times Daily
Friday,  Nov 24, 2017,00:10 (GMT+7)

Many banks hike deposit rates

The Saigon Times Daily

HCMC – Many commercial banks such as BIDV, VietinBank and Sacombank have recently raised their annual deposit rates by 10 to 50 basis points for many tenors, Dan Tri news website reports.

BIDV has revised up its interest rates for savings of one and two months to 4.8%, up 0.5 point. The rates are 5.2% instead of 4.8% for three-month savings and 6.9% for deposits of nine months or longer.

At VietinBank, the rates for six- to nine-month deposits have been hiked to 5.8-6% from 5.5-5.7%. The rate for the 12-month tenor also increased by 30 basis points to 6.8%. As for short terms of one to three months, the rates of 4.8% to 5.2% have been kept unchanged.

Sacombank has also raised its deposit rates by 20 basis points for two- and six-month tenors to 5.3% and 6.2% respectively. Notably, the nine-month deposit rate surged 40 basis points to 6.4% while 12-month savings enjoy an interest rate of 6.9%, or 10 basis points higher than the previous rate.

A market research shows that interest rates for savings of less than six months offered by BIDV are equivalent to those at VietinBank but much higher than at Vietcombank.

BIDV also offers the highest interest rates for six- to twelve-month deposits among large commercial banks.
Vietcombank, meanwhile, moved inversely, reducing its deposit interest rates early this month. The bank now has the lowest deposit rate among all credit organizations.

Analysts said that banks adjust their interest rates according to their needs for capital. Some banks have revised up their deposit rates to raise more capital to meet customers’ demand for loans.

According to a report by Bao Viet Securities JSC (BVSC), the State Bank of Vietnam has injected VND20.6 billion (US$0.91 million) via open market operations (OMO) channel and issued VND1.9 trillion worth of new promissory notes while debt papers falling due this week totaled over VND12.2 trillion.

Thus, the central bank has net injected VND10.305 trillion onto the market, taking the total net injection via the two channels to nearly VND10.33 trillion.

In addition, the interest rates for overnight, one-week and two-week tenors have increased by 20 to 26 basis points to 1.26%, 1.35% and 1.49% respectively.

However, the average deposit rates at banks remain low, according to BVSC.

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