Deposit interest rates exceed 7%, pushing up lending rates

Deposit interest rates exceed 7%, pushing up lending rates

Deposit interest rates at mid-sized banks have continued to rise and surpass the 7 per cent per year mark, causing lending rates to increase.

Customers at an MBV office in Hà Nội. MBV's interest rate last week increased by 1-1.3 percentage points to 7.2 per cent per year for 12-36 month deposits. — VNA/VNS Photo

Deposit interest rates at mid-sized banks have continued to rise, surpassing the 7 per cent per year mark and causing lending rates to increase.

One highlight last week was an interest rate hike by MBV. The bank unexpectedly increased deposit interest rates significantly across most terms, from six to 36 months. For the first time, it also applied the same rate for over-the-counter and online deposits. MBV listed interest rates of 6.5 per cent per year for 6-11 month deposits and 7.2 per cent per year for 12-36 month deposits, among the highest rates in the market.

Compared to the previous week, MBV's over-the-counter deposit interest rates increased by 1-1.3 percentage points per year for medium- and long-term maturities, while online interest rates also increased by 0.8-1.2 percentage points.

OCB and PGBank have also listed common deposit interest rates above 7 per cent per year. PGBank applies rates of 7.1–7.3 per cent per year for terms from six to 36 months, while OCB has offered a 36-month term interest rate of up to 7.1 per cent per year.

These moves have created a new interest rate benchmark among mid-sized banks.

Conversely, rates at the four largest banks – Agribank, BIDV, VietinBank and Vietcombank – remained relatively stable, with the highest rates at around 5.2–5.3 per cent per year for long-term deposits.

Since the beginning of January, many banks have adjusted their deposit interest rates upwards, including ABBank, Bac A Bank, LPBank, VPBank, MSB and BaoViet Bank.

ACB, on the other hand, slightly reduced its interest rates for three-month terms, one of the rare banks to move in the other direction.

Along with the increase in deposit interest rates, lending interest rates in the market have also started to rise. Many banks have adjusted their lending interest rates upwards by 1-2 percentage points per year compared to the end of 2025.

Specifically, OCB offers personal loan packages starting from 8.29 per cent per year, while some banks, such as LPBank, Nam A Bank and GPBank, are applying common lending rates ranging from 9.7 per cent to 12.7 per cent per year.

The real estate sector is under the greatest pressure from the wave of interest rate increases. Many banks have pushed real estate loan interest rates up to over 12 per cent per year.

Experts believe that the upward trend in lending interest rates is an inevitable consequence of the wave of deposit interest rate increases in the last months of 2025. The rise has come as the rate of credit growth was much higher than deposit growth. According to the State Bank of Vietnam (SBV), by the end of 2025, credit surged by about 19 per cent while deposits only increased by 14.1 per cent, causing significant pressure on the banking system's liquidity.

In 2026, the SBV has set a credit growth target of 15 per cent for the banking system, with adjustments made to suit actual situations. This will ensure inflation control and macroeconomic stability, while simultaneously supporting economic growth and the safety of the credit institution system.

Analysts at Vietcombank Securities Company forecast that deposit interest rates in the first half of 2026 may increase by 30-50 basis points, and could continue to increase by 40-50 basis points in the second half of the year.

Consequently, the average lending interest rate across the entire banking system could increase by approximately 50–70 basis points throughout 2026. 

Bizhub