'Big 4' banks increase deposit rate

Biggest Vietnamese lenders Vietcombank, VietinBank, and Agribank have hiked their deposit interest rates by over one percentage point, after the central bank raised the deposit rate ceiling last week.

Small- and medium-size commercial banks made a similar move last week.

On Tuesday, Vietcombank hiked its deposit interest rates by 0.8-1.3 percentage points.

For term deposits from one month to three months at the counter, the new interest rate is 4.1-4.4%, up by one percentage point.

The interest rates are 6.4% for both term deposits of 12 months and 24 months, up by 0.8 and one percentage point, respectively.

As online deposits are subject to an additional interest rate of 0.4 percentage point, the highest deposit interest rate at Vietcombank is 6.8% for term deposits of 24 months.

VietinBank raised its deposit interest rates by one percentage point to 4.1% for term deposits from one month to less than three months, 4.4% for term deposits from three months to less than six months, and 6.4% for term deposits of 12 months or more.

The deposit interest rates at Agribank went up to 4.4% for term deposits of less than six months and 6.4% for term deposits 12 months or more.

The three banks and BIDV, or the “Big 4” banks in Vietnam, account for 45% of total the deposits in the banking system in Vietnam.

Last Friday, the State Bank of Vietnam raised the deposit rate ceiling for term deposits from one month to less than six months, increased by 1 percentage points to 5% per year. For demand deposits and those with terms of less than one month, the rate ceiling has risen from 0.2% to 0.5% per year.

After that, small- and medium-size commercial banks have hiked their deposit interest rates by 0.3-1 percentage points. Big-size commercial banks, like Techcombank, VPbank, and Saigon-Hanoi Bank (SHB) also revised up their deposit interest rates to between 7% and 7.7% for term deposits of 12 months or more.

Vietcombank Securities (VCBS), a brokerage house, estimated the deposit interest rates have increased by 0.9-1.1 percentage points since the beginning of this year, showing changes in the liquidity of commercial banks versus the pandemic period.

While the credit growth of the economy reached 9.91% as of August 26, the growth of deposits was lower at 4%, meaning that banks are in dire need of deposits.

VCBS projected the average deposit interest rates may go up by 1.5-2 percentage points this year.