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Wednesday, September 28, 2022

Banks begin to hike deposit rates

The Saigon Times

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HCMC – Commercial banks are rushing to increase deposit rates to speed up their capital mobilization.

Twelve of over 30 banks have raised their deposit rates by up to 0.7 of a percentage point per year. The majority of banks have hiked rates for short-term savings, the local media reported.

ABBank has raised its annual rates by 0.4-0.5 percentage point for tenors of six months or longer, making it the bank with the highest upward adjustment. Customers depositing money online at ABBank for a nine-month term will enjoy a 70-basis-point spike in rates.

SHB has revised up deposit rates by 40 basis points for tenors of 12 months, while Techcombank had the same hike for online transactions.

The current highest deposit rate at SHB is 6.7% per year, up 35 basis points, and only applies to the 36-month term and online transactions.

At Military Commercial Joint Stock Bank, the deposit rates have been adjusted up 15-24 basis points per year for several tenors, while at Eximbank, the rate for online savings of 15 months is now 6.5%, up 20 basis points from early April.

Meanwhile, Vietinbank has lowered deposit rates by 30 basis points for all tenors. Three other banks, Agribank, BIDV and Vietcombank, have kept their deposit rates unchanged.

Securities firm VnDirect forecasts that deposit rates will not stand at all-time lows this year due to higher demand for capital mobilization, inflationary pressure and fiercer competition between banks and other fields such as real estate and securities.

As of the end of February, individuals’ deposits had climbed by over VND159.6 trillion against the end of 2021 at VND5.46 quadrillion.

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