Deposit interest rates continue to rise

Thursday, Oct 06, 2022 08:53

Banks continue to increase deposit interest rate to attract deposits. — Photo courtesy of Viet Capital Bank

Viet Capital Bank has unveiled a certificate of deposit for individual and institutional customers with an interest rate of up to 8.4 per cent depending on the tenor.

Customers can buy CoDs for just VND10 million (US$417) and receive interest of 7.5 per cent, 7.8 per cent, 8 per cent, and 8.2 per cent for terms of six, nine, 12, and 15 months.

For 18-month term they can get 8.4 per cent.

After six months they can freely transfer the CoDs and still enjoy higher interest rates than ordinary savings deposits, a bank spokesperson said.

After the State Bank of Viet Nam raised its policy rate, many banks, including State-owned ones, have raised interest rates for dong deposits.

ABBANK has the highest rate of 8.8 per cent for 13-month deposits of VND500 billion ($20.8 million) and above.

Banks are also offering promotions to attract deposits.

For instance, from October 3 to December 30, customers who make deposits of VND25 million ($1,040) and above at Vietbank can receive gifts such as multi-function electric cooker, steam iron, vacuum cleaner, umbrella, kitchen cutting board, and others depending on the amount and term.

They can also participate in a lucky pin on the Vietbank digital app with prizes of thousands of e-vouchers worth from VND20,000 to VND1 million, and a lucky draw at the end of the programme with prizes worth a total of VND6.5 billion, including a cash prize of VND1 billion, nine first prizes of 0.6 tael of gold each and 18 second prizes of VND20 million each.

As of September 20 this year deposit mobilisation by credit institutions increased by 4.04 per cent while credit growth was 10.54 per cent.

The rapid increase in credit has put pressure on banks’ liquidity.

ACB Securities said the credit cap would be increased by 2 per cent in the last quarter, while the SBV would continue to sell US dollars to keep the exchange rate in check, which would also put pressure on dong liquidity.

Public spending is expected to spurt in the remaining months of the year, meaning the money held by the State Treasury in banks will be drawn.

Due to these factors, ACBS said, banks would probably increase deposit interest rates by another 0.5 percentage points this year to ensure liquidity. — VNS

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