Deposit interest rates edge up as banks gear for rising loan demand

By Quynh Trang September 3, 2024 | 07:17 pm PT

More than 10 banks have increased their deposit interest rates by 0.1-0.9 percentage points in the last month, with the highest now for a 12-month period being 6.2%.

Many of them are large private banks like VPBank, Techcombank, ACB, Sacombank, TPBank, and SHB.

The highest raise has been by Sacombank, which raised its rate for six-month deposits by 0.8 percentage points and nine- to 12-month terms by 0.5-0.6 points.

Other large banks have hiked their rates by 0.1-0.5 percentage points for certain terms. ABBank offers the highest rate for 12-month deposits.

But a few smaller players like SeABank and BacABank lowered their rates last month after raising them in July.

The rates have been rising since early April when the highest rate for a 12-month deposit was around 5%.

Since then the number of banks offering over 5% has more than doubled to 29.

Bank executives said the rate hikes are meant to shore up deposits in anticipation of higher credit demand later this year.

Deposits grew at a much slower year-on-year rate in the first half of this year and even declined at some banks.