ACB and Techcombank offers the highest savings interest rate in October 2021

19-Oct-2021 Intellasia | VnEconomy | 5:02 AM Print This Post

The latest data of the State Bank of Vietnam (SBV) showed that as of October 7th 2021, the total credit of the whole economy increased by 7.42 percent compared to the end of 2020, a slow rate compared to the years before the epidemic. With this development, the liquidty of the system remained abundant, leading to the fact that some banks continued to reduce their savings interest rates.

Statistics of Bao Viet Securities Company, by the end of September, the group of large-scaled private joint stock banks (capital of over five trillion dong) were offering the lowest savings interest rates since 2017.

Specifically, in September, this group lowered savings interest rates of two terms of six months and 12 months by respectively 0.02 and 0.05 percentage point, reaching 4.45 percent and 5.39 percent per annum.

Meanwhile, for small-scaled private joint stock banks (capital of less than five trillion dong), the savings interest rates of six-month were cut by 0.02 percentage point to 5.37 percent per annum, but the 12-month rate was slightly raised to six percent per annum.

The group of state-owned banks did not make any change to the savings interest rates for terms of six and 12 months, maintaining them at 3.775 percent and 4.95 percent per annum.

In general, by the end of September 2021, the lowest six-month savings interest rate was 3.7 percent per annum and the highest rate was 6.1 percent per annum, while the lowest rate and the highest rate on 12-month term were respectively 4.5 percent and 6.8 percent per annum.

Notably, the savings interest rate movements in September were formed in the context when the credit growth was stagnant and the system liquidity was always abundant.

In October 2021, the SBV’s foreign currency buying forward contacts continued to be implemented. In addition, the State Treasury always started to buy a large amount of foreign currency, increasing the dong in the market. This has made the system liquidity even more abundant.

Since not being able to boost credit and being supplemented a large amount of dong as mentioned in the above, some banks continued to lower savings interest rates in October 2021 but the trend has not yet formed as in the previous month.

Typically, for Nam A Commercial Joint Stock Bank (NamABank), the eight to11-month and 12-month savings rates were respectively cut to 5.9%, 6.1 percent per annum, 0.1 percentage point lower than the previous month. Being cut by 0.2 percentage point this month, the savings rates are currently set at 6.5 percent per annum for terms of 25 to 29 months, and 6.4 percent per annum for terms of 30 33 months.

National Citizen Commercial Joint Stock Bank (NCB) slightly lowered savings rates by 0.05 0.2 percentage point across all terms. Accordingly, the three-month savings rate was cut from 3.9 percent to 3.8 percent per annum, six-month savings rate was cut from 6.25 percent to 6.1 percent per annum, while the 12-month rate was lowered from 6.4 percent to 6.35 percent per annum.

Similarly, the savings rates at Vietnam International Commercial Joint Stock Bank (VIB) were cut from 3.6 percent per annum to 3.4 percent per annum on one-month term, to five percent per annum on six-month term, and from 6.1 percent to 5.8 percent per annum on 24-month term. Export Import Commercial Joint Stock Bank (Eximbank) cut savings rates on terms of six months, 12 months and 12 months or more by 0.1 percentage point, respectively reaching 5.1%, 5.7 percent and six percent per annum.

Talking to the press, the SBV’s deputy Governor Dao Minh Tu said that the input interest rates of banks have continuously fallen from 2020 until now, currently reaching about five to 5.5 percent per annum. Thus, depositors will have a positive real interest rate if inflation is maintained at three percent.

“If mobilising at too low interest rates, depositors will not deposit money in banks anymore and go to buy houses and gold instead. Meanwhile, banks are mainly borrowing from people to lend back to the economy. Therefore, input capital source must be maintained and it is not possible to set a target to lower the input savings interest rates in order to lower lending interest rates from now until the end of the year,” the deputy Governor emphasized.

Regarding the ranking in savings interest rates in October 2021, although Asia Commercial Joint Stock Bank (ACB) has adjusted its highest rate from 7.3 percent to 7.1 percent per annum (for 13-month term and deposits from 30 billion dong or more) but the bank still ranks first on the list. Vietnam Technological and Commercial Joint Stock Bank (Techcombank) also offers the rate of 7.1 percent per annum on term of 12-month term, applicable to deposits from 999 billion dong or more.

Maritime Commercial Joint Stock Bank (MSB) ranks the second with the highest savings interest rate of seven percent per annum (unchanged), applicable to customers with deposits from 200 billion dong or more on terms of 12 months and 13 months.

Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) is currently in the third position with the savings interest rate of 6.99 percent per annum. To enjoy this rate, customers must deposit on two terms of 13 months and 60 months, and the 13-month deposit value must be from 300 billion dong.

Some other banks also apply high savings interest rates such as Military Commercial Joint Stock Bank (MBB) and Viet A Commercial Joint Stock Bank (VietABank) with 6.9 percent per annum, HCM City Development Commercial Joint Stock Bank (HDBank) with 6.85%per annum, Saigon Commercial Joint Stock Bank (SCB) with 6.8 percent per annum, Kien Long Commercial Joint Stock Bank (Kienlongbank) with 6.75 percent per annum, etc. However, these interest rates are not for all deposits, each bank has its own condition for customers to enjoy the above rates.

The four state-owned banks including Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank) and Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) still maintain the same interest rate tables in September. In particular, the highest rate is 5.6 percent per annum at VietinBank, and the remaining three banks apply the highest savings interest rate of 5.5 percent per annum.

Vietnam Prosperity Commercial Joint Stock Bank (VPBank) is in the last position with the highest rate of only 5.4 percent per annum for terms from 15 to 36 months, application to deposits from 50 billion dong or more.

 

Category: Finance, Vietnam

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