Banks offer higher deposit rates after credit growth quota expanded

A bank teller counting money in Hanoi (Photo: VNA)

Hanoi (VNS/VNA) - Many banks have increased their interest rates toattract more depositors after getting a credit growth quota expansion from theState Bank of Vietnam (SBV).

Last month, SBV decided to extend the credit growth limit for 11 banks tomeet the rising capital demands of the economy at the end of the year.

Following this, many banks have raised their interest rates by 0.5-0.8 percentand have implemented a series of incentive programmes that offer additionalinterest rates for online savings or gifts to attract depositors.

With the adjustment, the highest savings interest rate in the market currentlyis 7.1 percent per year, but customers must meet various strict conditions,including minimum deposits.

Techcombankannounced a special interest rate of 7.1 percent per year for customersdepositing 999 billion VND or more with a commitment of not withdrawing themoney before maturity.

Forsmaller deposits of only a few hundred million dong or less, depositorscan choose many other banks to enjoy an interest rate of around 7 percent peryear.

Fordeposits made at the counter, the Vietnam Russia Joint Venture Bank (VRB) topsthe list with a rate of 7 percent per year, applicable for 24 and 36-monthterms.

SaigonCommercial Joint Stock Bank (SCB) is also applying a high rate of 6.8 percentper year for 12, 18, 24 and 36 month deposits.

Therate of 6.7 percent per year for deposits, with terms of 12 months or more, isavailable at BacABank, CBBank and Kienlongbank.

Foronline savings, the interest rates are roughly 0.1-0.6 percent higher per yearthan at the counter.

NamABankoffers the highest interest rate for online savings without the requirement fora large deposit amount. Customers depositing money via the bank’s e-bankingapplication on terms of 18, 24 and 36 months can enjoy a rate of 7.1 percentper year. In addition, the rate for terms of 12 and 15 months at the bank is6.9 percent per year, a high level in the market.

Personalbank deposit growth has slowed consecutively since March this year asdepositors pour their savings into more attractive investment channels such asstock, real estate and cryptocurrency markets, amid declining deposit interestrates.

Accordingto the SBV’s data, personal bank deposits totalled nearly 5.29 quadrillion VND(230 billion USD) by late September, down roughly 1.5 trillion VND on lateAugust.

InJuly, monthly bank deposits also fell against previous months, the central bankstated, noting deposits in August decreased by some 1 trillion VND againstJuly.

From early January to late September, personal deposits hit 150 trillion VND, ayear-on-year decline of around 50 percent./.

VNA