Banks about to raise deposit interest rates

From the beginning of March this year, many commercial banks have started to raise their deposit interest rates, generally at 0.1-0.2 percentage points per annum. Of which, there are terms with an increase of up to 0.8 percentage points per annum.
Particularly, Techcombank increased by 0.2-0.5 percentage points of the interest rate at all terms from one to eight months. The interest rate of the 36-month term also soared sharply from 4.8 percent per annum to 5.2 percent per annum.

Similarly, the deposit interest rate of ACB for the two-month term inched up by 0.1 percentage point per annum. VPBank also uplifted the deposit interest rates for terms from two to five months by 0.2 percentage points for customers with savings from over VND300 million to below VND10 billion.

The deposit interest rates for savings from VND3 billion to below VND10 billion increased by 0.15 percent per annum for the two-month term and 0.1 percent per annum for the three to five-month terms. With the deposits of VND50 billion or more, the interest rates for the two to five-month terms also surged by 0.05-0.2 percent per annum, depending on each term.

However, the market record showed that this wave of the interest-rate hike has not spread widely because many lenders said that in the first few months of the year, credit demand is usually not high, and liquidity is still quite abundant, so many banks have not embarked in the race to increase interest rates to attract capital yet.

However, experts assessed that in the coming time, other commercial banks would also increase deposit interest rates to keep customers under the pressure of increasing interest rates of the market.

Along with that, in the context that the Covid-19 pandemic is under control, and the consumer price index in February rose sharply, the deposit interest rate will likely climb again shortly.

By Nhung Nguyen – Translated by Thuy Doan

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