Banks in race to hike deposit interest rates

By Tat Dat   October 13, 2022 | 09:27 pm PT
Banks in race to hike deposit interest rates
Stacks of money at a bank. Photo by VnExpress/Giang Huy
Interest rates on bank deposits have surged back to the pre-Covid levels, with VietABank offering the highest rate of 8.7%.

Since late September 25 out of 36 banks surveyed by VnExpress have increased interest on term deposits, with eight raising them across the board.

The average rates for six-month deposits are 6.45% if made at the counter and 6.85% if made online, and 6.54% and 6.93% for nine months.

On 12-month deposits, many banks have hiked interest by 0.8 percentage points.

But Vietnam Maritime Commercial Joint Stock Bank and KienlongBank have effected a hike of by 1.2 percentage points.

Now 19 banks are offering interest of over 7% for one-year deposits made at counters, and 24 others are offering the rate online.

The highest rates are 8.5% by SCB at the counter and 8.7% by VietABank online.

Banks began to raise the interest rates after the central bank hiked its operating interest rates for the first time in two years on Sept. 23.

VnDirect Securities said banks are mobilizing more money after getting new credit quotas besides which the U.S. Federal Reserve’s continued rate hikes are pressurizing interest rates in Vietnam too.

Banks said the rate of deposit mobilization has not kept pace with credit growth since interest rates are less attractive than returns on other asset classes.

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