Some banks suddenly lower deposit rates during the peak season

13-Nov-2019 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

In early November, a series of banks announced the application of a new interest rate schedule. Notably, savings interest rates at some banks showed signs of cooling down.

For example, at Viet Capital Commercial Joint Stock Bank (Viet Capital Bank), the interest rate decreased slightly for six-month term from 7.4 percent to 7.3 percent per year, for nine-month term from 7.8 percent to 7.7 percent per year. In addition, the highest interest rate at this bank also fell by 0.1 percentage points to 8.5 percent per year (applied for terms of 24 months to 60 months).

Vietnam Export Import Commercial Joint Stock Bank (Eximbank) announced a new interest rate table effective from 7 November 2019, in which the adjustment decreased in many terms. For example, the interest rate of 15-month and 18-month savings deposits at the counter reduced by 0.2 percentage points to 8.1 percent per annum. The 12-month term interest rate decreased by 0.1 percentage points to 7.7 percent per year.

On the last trading day of October, Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) also announced interest rate changes for several terms. Specifically, at six-month term deposit at the counter, the interest rate decreased by 0.1 percentage points to 7.2 percent to 7.5 percent per year. Similarly, for online savings, the highest six-month savings interest rate is 7.5 percent per year, lower than the previous rate of 7.6%. Phat Loc Thinh Vuong savings products also have similar adjustments.

At Nam A Commercial Joint Stock Bank (Nam A Bank), the new interest rate table takes effect from November 5, 2019. Accordingly, for 16 and 17 month periods, the interest rate decreased by 0.3 percentage points to 7.4 percent per year.

Many other banks also have new interest rates applied from November, including Construction Commercial One Member Limited Liability Bank (Construction Bank CBBank) and National Citizen Commercial Joint Stock Bank (NCB). But the trend continues to rise. The interest rate for six and 11-month terms when depositing online at CBBank has soared to 8.6 percent per year.

At the adjustment on October 31, NCB sharply raised interest rates for less than 24-month terms from 0.1 to 0.8 percentage points. Accordingly, the six-month term increased from 7.4 percent to 8 percent per year, the nine-month term rose from 7.5 percent to 8.1 percent per year, the 12-month term increased from 8 percent to 8.2 percent per year, and the 24-month period soared from 8 percent to 8.7 percent per year.

The fact that the banks adjusted interest rates differently may only target to restructure mobilisation of terms. In general, interest rates are still high, and many banks have raised interest rates to nine percent per year.

Banks are in the busiest business season of the year and it is a few months to the Lunar New Year, causing the people ‘s need to borrow capital and withdraw money. Accordingly, banks are expected to have many interest rate adjustments in the near future.

 


Category: Finance, Vietnam

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