Banks hike deposit interest rates

By Quynh Trang June 11, 2024 | 11:17 pm PT

Over 15 banks have raised their deposit interest rates since the end of May, with the highest for a 12-month tenor now being 5.6%.

But none of the four state-owned lenders have touched their deposit rates in the last two months.

MB and Techcombank, two large private banks, increased their rates by 0.1-0.7 percentage points in the past month, mainly for short-term deposits.

The biggest hike was by ABBank, which increased interest on 12-month deposits by 1.7 percentage points to 5.4%.

More banks are now offering above 5% compared to April.

The highest rate for 12 months is 5.6% at BVBank, ABBank and BacABank.

The rate hikes are meant to lure investors away from other asset classes, particularly gold, according to analysts.

This year the precious metal has fetched a return of over 22%, while a 12-month deposit only yields around 1.5%.

As of the end of May credit growth was 2.4%, much below the full-year target of 14%, according to government data.