A customer deposits at a LienViet PostBank office in Hanoi. (Photo:VNA)In a recent report, the Bao Viet Securities Company (BVSC)’s analysts said theaverage deposit interest rate continued to inch down last month for both6-month and 12-month terms.
Accordingly, the average rates for 6-month and 12-month deposits in Octoberdecreased by 0.01 and 0.06 percentage points to 4.70 percent and 5.50 percentagainst the previous month, respectively.
Compared with the same period last year, the average interest rates of 6-monthand 12-month deposits declined by about 0.5 percentage points.
According to BVSC’s analysts, Vietnam's consumer price index in the first tenmonths of 2021 increased by only 1.81 percent, the lowest since 2016. Theyforecast the index would increase by only around 2.5-3 percent for the whole of2021.
“The low inflation rate would create favourable conditions for the State Bankof Vietnam (SBV) to continually maintain a loose monetary policy with an aim tostimulate the economy for recovery in the last months of the year. Depositinterest rates therefore would continue to remain low in the coming months,”they said.
In the context that deposit interest rates hit the lowest levels, the depositgrowth at banks is slowing down.
According to the SBV, by the end of August, deposits at banks increased by only4.17 percent compared to the beginning of the year to more than 10.4quadrillion VND, the lowest growth rate since 2012.
Currently, four State-owned banks Vietcombank, VietinBank, Agribank and BIDVand some large-sized banks such as Techcombank and Military Bank are listingthe lowest interest rates in the banking system.
The highest savings interest rate for 12-month deposits at Vietcombank,Agribank and BIDV is 5.5 percent per year while VietinBank is capping the rateat 5.6 percent per year.
Previously, banks often raced to increase savings interest rates and launchedpromotional programmes to attract depositors in the last months of a year tomeet rising capital demands in the peak business season ahead of the country’sbiggest holiday Tet (Lunar New Year). However, due to the adverse impacts ofthe COVID-19 pandemic, the savings interest rates have been dropping andremained stable since last year.
According to the SBV, though banks cut lending interest rates significantlythis year, credit increased 7.42 percent in the first nine months of this year.The credit growth is expected to reach 12 percent by the end of the year./.
VNA
