Although the liquidity is plentiful, banks continue to adjust deposit interest rates, in order to prepare capital to meet the rising credit demand.
Nam A Joint Stock Commercial Bank (Nam A Bank) has just raised interest rates on many term deposits. In particular, the 12-month term interest rate climbed to 7.7 percent per year, up 0.3 percentage points from the previous year. Notably, with the form of online savings deposit, customers will be offered an interest rate of eight percent year.
In March 2019, Saigon Joint Stock Commercial Bank (SCB) applied the highest interest rate of 8.65 percent per year for individual customers who have online savings from 13 to 36 months and Dac-Loc-Phat savings. For ordinary savings products in the form of paying interest at maturity, the rates range from 5.4 to 7.77 percent per year for terms of one to 36 months.
At the beginning of March 2019, the highest deposit interest rate in Vietnam Joint Stock Commercial Bank of Industry and Trade (Vietinbank) was 7.1 percent per year applied for 12-month term for online savings products. The rate for ordinary savings is from 0.1 to seven percent per year depending on the term.
LienViet Post Joint Stock Commercial Bank (LienVietPostBank) also has a new interest rate schedule, sharply increasing in some terms. In which, one to two month terms rose by 0.5 percentage points, to five percent per year. Six-month term rate was up from 5.8 percent to 6.1 percent per year. In addition, with a term of 13 months and a large amount of deposits (over 300 billion dong), the interest rate increased by 0.2 percentage points to eight percent per year. For the deposit amount less than 300 billion dong with tenor 13 months, interest rate is seven percent per year.
Recognition in the market shows that the mobilising interest rates are sharply classified into groups. In the group of state-owned banks such as Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and VietinBank, interest rates for short-term deposits (from one to three months) only range from 4.4 to five percent per year. Meanwhile, the group of joint-stock banks are mobilising this term with interest rates of 5.15.5 percent per year. Some small and medium joint-stock banks are mobilising terms of less than six months with ceiling or close-to-ceiling interest rates as prescribed by SBV.
In long terms, the interest rate gap is even bigger. In the group of larger banks, the rates for six and nine month terms are only popular at 5.5 percent to 5.6 percent per year. With terms from 12 to 36 months, the rates in large banks have been raised at 6.88.6 percent per year. Meanwhile, there are some small banks applying an interest rate of 7.4 percent per year from the six-month term.
On the occasion of the International Women’s Day, Mars 3, many banks offer a programme to add interest rates for female customers to attract mobilised capital. Specifically, female customers coming to trade on March 8 received flowers and cards from Viet Capital Joint Stock Commercial Bank (Ban Viet Bank) as a loving blessing and offer additional savings interest rate of 0.1 percent per year and a 50 percent reduction of domestic transfer fee on two days 7 and 8/3.
Female customers are entitled to a saving interest rate of 0.4 percent at Asia Joint Stock Commercial Bank (ACB) until April 9th. In addition, female customers who transfer money at the counter (domestic and overseas) are also entitled to a 50 percent discount. Relatives of female customers who deposit money at ACB will also enjoy the same interest rate incentives.
In addition, on March 8, female customers put new or renewed savings with terms of from 6 to 36 months at Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank) also enjoy preferential interest rates up to eight percent per year. Vietnam Public Joint Stock Commercial Bank (PVcomBank) offered an additional 0.3 percent interest on deposits to customers opening savings books “Lighting up trust”. BIDV offers savings with interest rates up to 7.6 percent per year.
Retail Research Analysis of SSI Securities Joint Stock Company said that, last week, SBV continued to withdraw 9.71 trillion dong via OMO, the Treasury bill maintained a zero balance when there was no transaction. With the recent net withdrawal in three recent weeks, the volume of OMO circulation had narrowed rapidly from over 150 trillion dong to nearly 19 trillion dong. Therefore, overnight interest rate on interbank market on March 1 was at 4.15 percent per year, up by 18bps (basic point) compared to the previous week.
In market 1, which is the operation of banks with individuals and economic organisations, short-term deposit rates are adjusted down in many banks, currently maintained at 4.3-5.5. percent per year with term from one to less than six months. However, interest rates for terms of 6 months or more have inconsistent adjustments in banks, depending on the need to balance capital to meet the requirement of short-term capital for medium and long-term loans of each bank. The interest rate difference is therefore widening, the terms from six to less than 12 months are 5.57.5 percent per year and 12-13 months is 6.48 percent per year.
