In the market, Saigon Hanoi Commercial Joint Stock Bank (SHB) is still the leading bank in terms of interest rates, at 9.2 percent per year for 13-month term and 8.9 percent per year for 12-month term. This figure is far from the second position which is Viet Capital Commercial Joint Stock Bank (Viet Capital Bank) at 8.5 percent and 7.5 percent per year respectively. To enjoy the above interest rate at SHB, the deposit value needs to be over 500 billion dong. The next positions belong to Vietnam Export Import Commercial Joint Stock Bank (Eximbank) with an interest rate of 8.4 percent per annum for terms of 13 months and 24 months. In particular, the condition of enjoying the interest rate on deposit is 13 months with a value of over 100 billion dong and 24 months from 500 billion dong. An Binh Commercial Joint Stock Bank (ABBank) follows with an interest rate of 8.3 percent with a term of 13 months, for over 500 billion dong.
National Citizen Commercial Joint Stock Bank (NCB) also announced an interest rate of 8.3 percent per year for 24-36 month terms and without deposit conditions. Besides, this bank also announced a 12 and 18-month interest rate ranging from 8-8.15%. This is also the last bank to record interest rates of more than eight percent in the market.
Kien Long Commercial Joint Stock Bank (Kienlongbank) leads the way with an interest rate of 7.9 percent per year for 15-24 month terms, with no deposit value required. The 13-month term interest rate also maintained at 7.7%, while the 12-month term was 7.5%. The next position continued to have the presence of ABBank with interest rates of 7.7-7.8 percent for 15-60 month terms.
The rate of 7.5-7.6 percent per year is common in many banks in the long term, which can be destination such as Tien Phong Commercial Joint Stock Bank (TPBank) with the term of 24-36 months, Viet Capital Bank (over 15 months). In terms of 6-9-month term, NCB surpassed BacABank (interest rate of 7.4-7.5%) with the rate of 7.5-7.55 percent per year, higher than the rest ranging from 6 7%.
State-owned banks are still the group with the lowest interest rate in the system. Non-term interest rates are only 0.1-0.2%, while the majority of private banks ranges from 0.3-0.5%. 1-3 month tenors are only at 4.3-4.7%, and 6-9 months are only 4.9-5.1%. Interest rates at Vietcombank currently stand at the end for all terms.
Competition to attract capital
Since the end of March, after the State Bank of Vietnam (SBV) lowered its interest rates including ceiling deposit rates, banks also announced a new interest rate cut for terms of less than six months at State-owned banks, while private commercial banks simultaneously lowered many terms.
However, in early April, with SBV’s Directive 02 to encourage banks to further reduce interest rates by 2-2.5 percent for businesses and individuals affected by Covid-19, Agribank, Vietcombank, BIDV, VietinBank have simultaneously lowered interest rates at most of terms over six months. Popular reduction was from 20 to 30 basis points.
Meanwhile, the private group pushed savings rates back to near the control interest rates for terms of less than six months, fluctuating from 4.5 to 4.75 percent and interest rates for over six months also recovered by 10 20 basis points such as at Techcombank and Sacombank. This move by private banks may take advantage of opportunities to attract more mobilised capital, in the context of the whole economy affected by Covid-19 epidemic and businesses withdrew their deposits in the first months of the year.
According to SBV data, deposits of economic organisations by the end of February stood at 3.77 quadrillion dong, down by more than 4.8%, equivalent to a decrease of over 190 trillion dong. This reduction is larger than the figure of 2.87 percent in the same period in 2019. Meanwhile, the deposit of individuals still increased by nearly four percent, equivalent to the same period last year.
