Saigon Commercial Bank tries to stem deposit run with highest 12-month rate

By Quynh Trang October 9, 2022 | 03:00 pm PT

Customers and staff are seen at an office of SCB in District 6, Ho Chi Minh City. Photo courtesy of SCB

The Saigon Joint Stock Commercial Bank (SCB) has increased its interest rate for 12-month term deposits by 1 percentage point to 8.55%, the highest in Vietnam’s banking system.

After many depositors rushed to withdraw their term deposits before maturity, SCB has also raised the interest rates for other deposits with terms of over nine months by 1 percentage point. The new rates have been applied starting Oct. 8.

Over the past month, local banks have raced against one another to increase their deposit interest rates, but most have fixed their rates at below 8% for term deposits of 12 months or less.

From Oct. 7 afternoon to Oct. 8, worried about their deposits’ safety, many people queued up at SCB branches to withdraw their money.

SCB will ensure liquidity in all situations, Deputy CEO Hoang Minh Hoan said Saturday.

The central bank also urged people not to panic and withdraw money before term deposits mature and lose their benefits, saying it would always ensure their money’s safety.

SCB, amalgamated by three banks, began official operations in January 2012. It is the biggest private bank by assets.