More banks pushes deposit rates to 9pct per annum

16-Oct-2019 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

Viet Capital Commercial Joint Stock Bank (Viet Capital Bank) has just announced an increase in deposit interest rates for all customers from October 14 to 18. Accordingly, the maximum interest rate will be adjusted by the bank to 8.9 percent per year, an increase of 0.3 percent compared to the current maximum interest rate. Specifically, the rate hike this time of Vietcapital Bank focuses on three terms including six months, 12 months and 15 months, corresponding to each term is the rate of 8.5 percent, 8.7 percent, and 8.9 percent per year. To enjoy the above interest rate, depositors only need to deposit a minimum of 100 million dong.

Previously, Saigon Hanoi Commercial Joint Stock Bank (SHB) announced the highest deposit interest rate of nine percent per yearthe highest in the market, but applied for deposits of 500 billion dong or more and 13-month term. With this deposit, individuals who enjoy nine percent interest of SHB may only count on the fingers.

Meanwhile, the 8.9 percent rate at Vietcapital Bank applied only requires a deposit of 100 million dong or more, meaning that almost anyone who has long term deposits at this bank will also enjoy high interest. thus, this is essentially the highest interest rate.

Interest rates of over eight percent are also applied by many banks for long-term deposits, such as An Binh Commercial Joint Stock Bank (ABBank), Nam A Commercial Joint Stock Bank (Nam A Bank), Sai Gon Joint Stock Commercial Bank (SCB), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank), National Citizen Commercial Joint Stock Bank (NCB), and VietNam Asia Commercial Joint Stock Bank (Viet A Bank).

In addition, some banks maintain certificates of deposit products to attract long-term capital, which also gives very high interest rates, around nine percent per year, even more than 10 percent per year as at Vietcapital Bank.

The wave of raising interest rates to some banks is making the deposit rate level much higher than before. According to the assessment of Bao Viet Securities Company (BVSC), the preparation of capital for the end of the year business season as well as the pressure to restructure capital resources to meet the provisions of Capital adequacy ratio (CAR) according to Basel II and the ratio of short-term capital for medium and long-term loans is the main reason leading to the above interest rate race. And BVSC estimates that, compared to the beginning of 2019, deposit rates have increased by 0.4 percent in general.

Commenting on the trend of interest rates at the end of the last quarter of this year, the group of analysts of SSI Securities Company said that interest rates would remain at high levels and were likely to fall. “Lowering interest rates may reduce liquidity pressure in the end of the year peak period, helping deposit and lending rates to be stable but the possibility of a decrease in Q4/2019 is quite low” SSI identified.


Category: Finance, Vietnam

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