Many commercial banks have increased interest rates for Vietnamese dong deposits over the past few days after the State Bank of Viet Nam raised its policy rate by 100 basis points last Thursday.

Vietnam Prosperity Commercial Joint Stock Bank (VPBank) has sharply increased deposit interest rates for short terms. Specifically, customers who deposit at VPBank for a term of 2-5 months will enjoy a ceiling interest rate of 5 per cent per year for savings of VND10 billion or more, up 1 percentage point. As for deposits from VND3 billion to less than VND10 billion, the interest rate is 4.9 per cent per year. The rate of 4.8 per cent per year is for deposits from VND300 million to less than VND3 billion.

Interest rates for 12-month deposits at VPBank has also increased by 0.5-0.6 percentage point per year to range from 6.4-7.2 per cent per year depending on the deposit value.

Notably, the highest interest rate listed by VPBank is 7.7 per cent per year for customers who deposit from VND50 billion or more with a term of 36 months, up 0.7 percentage point per year. This rate is currently the highest rate in the banking system for deposits under VND100 billion.

At Saigon-Hanoi Commercial Joint Stock Bank (SHB), the deposit interest rate for terms of less than one month has also increased to a maximum of 0.5 percentage point per year. The rate for deposits from one month to less than six months has also increased by 0.8-0.9 percentage point per year to range from 4.38-4.9 per cent per year.

For longer terms, deposit interest rates at SHB has increased by 0.4-0.5 percentage point per year to 5.73-7.35 per cent per year depending on terms.

SHB is listing the highest interest rate of 8.1 per cent and 7.9 per cent per year for Phat Loc deposit certificate with terms of eight and six years, respectively.

Many other banks, such as Asia Commercial Joint Stock Bank (ACB), Vietnam Import-Export Commercial Joint Stock Bank (Eximbank), Bac A Commercial Joint Stock Bank (Bac A Bank), Viet Capital Commercial Joint Stock Bank (Viet Capital Bank) and Kien Long Commercial Joint Stock Bank (Kienlongbank), have also adjusted up the deposit interest rate for many terms, especially terms of less than six months.

Meanwhile, large-sized State-owned banks in the Big 4 group, including Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Industry and Trade of Vietnam (VietinBank) and Bank of Agriculture and Rural Development of Vietnam (Agribank), have not yet made a new adjustment. Currently, the highest interest rates listed by these banks range from 5.6-5.8 per cent per year for online deposits and 5.6 per cent per year for over-the-counter deposits. Their interest rates for short terms under six months are at 3.1-3.4 per cent per year.

Maybank Investment Banking Group (Maybank IBG) forecast after last week’s adjustment, the SBV would keep the deposit interest rate unchanged from now until the end of 2022.

According to Maybank IBG, the SBV’s policy rate hike last week would not significantly affect the economic recovery. Maybank IBG maintains its GDP growth forecast of 8 per cent for Viet Nam for 2022 and 6 per cent for 2023, respectively. — VNS