More banks issue certificates of deposit with interest rates above 9pct per annum

22-Aug-2019 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

Specifically, from August 8, Vietnam International Commercial Joint Stock Bank (VIB) issued 61-month term certificate of deposit, paid 12-month interest at an interest rate of 9.1 percent per year. Minimum deposit amount was only 10 million dong. The interest rate of 9.1 percent per year was also the highest mobilising interest rate of banks today.

In early May, the market surprised when VietNam Asia Commercial Joint Stock Bank (Viet A Bank) issued certificates of deposit up to 9.1 percent per year. This high interest rate deposit issuance programme lasts until September 30, 2019. That was a certificate for individual customers with a 24-month deposit term and a minimum deposit of 10 million dong. That type of certificate of deposit was allowed to transfer ownership.

Saigon Hanoi Commercial Joint Stock Bank (SHB) also said to issue certificates of deposit with interest rates up to 8.9 percent per year with a total par value of 10 trillion dong. Specifically, for a minimum amount of 1 million dong, individual customers can join the programme. With a nominal value of under 2 billion dong, the interest rates for 18-month, 24-month and 36-month terms were 8.6 percent per year, 8.7 percent per year and 8.8 percent per year respectively. The programme ended June 6, 2019 or until enough volume.

While there were more banks issuing high interest rate certificates, in August, many banks also adjusted the savings deposit interest rates according to the upward trend.

In the notice to increase savings interest rates, SHB said that the highest interest rate would increase to 8.2 percent per year, applied for 13-month term. In addition, the six-month term interest rate was up to 7.8 percent per year, nine-month and 12-month term interest rates would be eight percent per year and 8.1 percent per year respectively.

Orient Commercial Joint Stock Bank (OCB) also applied the new interest rate schedule from August 12, whereby interest rates in many terms increased. Accordingly, the highest deposit interest rate at the counter and online of this bank was currently eight percent per year and 8.1 percent per year, 36-month term while previously only at 7.6 percent per year and 7.7 percent per year.

After raising interest rates in early July, Vietnam Export Import Commercial Joint Stock Bank (Eximbank) continued to apply new interest rates from August 6. Accordingly, the highest interest rate when depositing at the counter was 8.4 percent per year for 13-month, 24-month and 36-month term instead of eight percent per year. 12-month term interest rate surged from 6.8 percent per year to 7.9 percent per year.

It can be seen that the pressure of mobilisation was still large in banks, which were keeping deposit interest rates high and on the rise. The end of the year stage is the period when the demand for loans of businesses and business households in the economy increases sharply. Accordingly, banks need to increase the mobilisation of input capital to meet credit growth.

In that context, it was unlikely that lending rates would decrease in the near future. Although from the beginning of August, four big banks including Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Bank for Agriculture and Rural Development (Agribank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) had been pioneering in cutting lending rates in priority areas; Experts said that move was unlikely to have a spreading effect in the system.

 


Category: Finance, Vietnam

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