SHB offers the highest 13-month savings rate in the system

18-Sep-2020 Intellasia | NDH | 6:02 AM Print This Post

In the market, the highest savings interest rate is 8.95 percent per annum at Saigon Hanoi Commercial Joint Stock Bank (SHB), applicable for term of 13-month term and value of no less than 500 billion dong. At SHB, the 12-month and six-month savings rates with similar conditions are offered at respectively 8.6 percent and 7.5 percent per annum, unchanged compared to the end of August. For deposits of less than 500 billion dong on the same term, the savings rates are 1.6 2.35 percentage points lower. According to NDH, the highest 13-month rate is being used by the bank as the basis for calculating interest rates.

Following SHB, Viet Capital Commercial Joint Stock Bank (VietCapitalBank) announced savings interest rate at 8.5 percent per annum, and An Binh Commercial Joint Stock Bank (ABBank) announced the rate at 8.3 percent per annum under the same conditions. Export Import Commercial Joint Stock Bank (Eximbank) also raised the conditions to enjoy special interest rates from 100 billion dong to 500 billion dong or more. If meeting the deposit value, customers who open new accounts or renew their accounts will be offered savings rate of 8.4 percent per annum on terms of 13 months and 24 months, and 7.2 percent per annum for term of 12 months.

For ordinary deposits with no special conditions, the common 12-month savings rate is six to 7.7 percent per annum.

The group of state-owned banks (including Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) and Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank)) offer the lowest savings rates in the system, reaching six percent per annum for terms of 12 months or more, 4.4 4.5 percent per annum for terms from six to nine months, 3.5 3.8 percent per annum for terms of three to five months, and 0.1 percent per annum for demand deposits.

Unlike large banks, small-scaled banks keep savings rate level at high levels to attract deposits. National Citizen Commercial Joint Stock Bank (NCB) is maintaining average interest rate at all terms at the highest levels in the system with 4.15 percent per annum on terms of one to three months, seven to 7.3 percent per annum on terms of six to nine months, 7.3 7.7 percent per annum on terms of 12 months or more. Saigon Commercial Joint Stock Bank (SCB) and Bac A Commercial Joint Stock Bank (BacABank) are also banks that maintain high savings rates.

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has just announced a new interest rate table from September 15th, with a decline of 20 basis points on three-month and six-month terms, reaching respectively 2.7 percent per annum and 4.2 percent per annum; while kept the rates for other terms unchanged.

At other banks, the savings rates are almost the same compared to the end of August and early September, popularly reaching three to four percent per annum on terms of less than six months, 4.2 six percent per annum on terms of six to less than 12 months, and five to 6.7 percent per annum on terms of 12 and 13 months.

From the beginning of the year, savings rates have fallen by a total of 50 210 basis points across all terms. After sharply decreasing from May to the end of August (80 basis points), interest rates have slowed down and levelled off at low levels.

Along with the reduction of interest rates, the deposits of people and economic organisations have also increased more slowly. In July alone, the deposits of people and economic organisations increased by respectively 4.870 and 4.5 trillion dong much lower than the previous two months.

As of August 26th, credit only grew by 4.23 percent compared to the end of 2019, while the growth of capital mobilisation remained good despite a deep interest reduction. The widened gap between mobilisation and credit makes the dong abundant in the banking system.

According to information from the State Bank of Vietnam (SBV), the total means of payment (M2 money supply) at the end of July reached 11,160 trillion dong, up by 5.6 percent compared to the end of 2019. This number is much lower than the seven to eight percent increase recorded in the same period of three years ago.

Saigon Securities Incorporation Research (SSI Research) said that the SBV’s monetary loosening policy will continue to be maintained, and the liquidity of banks will remain abundant. The interbank rates will be kept at low levels, and savings rates may drop further by 10 30 basis points in the near future.

 


Category: Finance, Vietnam

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