Local banks continue raising deposit rates
Local banks continue raising deposit rates
Local banks have continued raising interest rates to attract depositors, though the State Bank of Vietnam still insists on strong liquidity in the banking system.
Saigon Commercial Bank (SCB) on Tuesday said it had launched certificates of deposit (CDs) with a term of 469 days, offering customers an interest rate of up to 8.9% per year.
CDs have five face values ranging from VND100 million to VND2 billion. CD holders requiring capital can transfer these products at SCB.
Earlier, SCB introduced short-term CDs, attracting some 29,000 clients. CDs typically carry higher rates than standard deposit products.
At present, SCB applies the highest mobilization rate at 8.55% per year for tenors from 13 to 36 months.
ABBank has also applied the highest deposit rate of 8.5% per year for the 12-month tenor, with a promotional program that runs until the end of next month. According to the bank, this rate is seen attractive for customers who have idle money and are seeking a safe and effective investment channel.
At Eximbank, online depositors since early this month have enjoyed a rate of 8.5% per year for tenors of 24 to 36 months. This is the highest rate at the bank this year.
Earlier, many banks raised their deposit rates significantly, with some even applying a rate of 10% per year. Further, some lenders have offered rates of over 8% per year for deposits of six months or longer.
However, according to the central bank, savings rates at banks remain stable, staying at 0.5% to 1% per year for call deposits and those with a term under one month, as well as 6.6% to 7.3% for terms over 12 months. Meanwhile, lending rates are around 6%-9% for short terms and 9%-11% for medium to long terms.
Explaining the recent rate revisions by local banks, the central bank in a report sent to the National Assembly stated that banks had raised their long-term deposit rates slightly to restructure capital sources and meet safety standards in operations.
However, short-term rates remain stable, where rates for demand deposits declined. The banking system still has strong liquidity, according to a representative of the State Bank of Vietnam.
