The trend of race to increase interest rates continues to be hot
Entering August, the trend of 'race' to increase interest rates continues to be hot when many banks have just adjusted deposit rates in many periods. The increase ranges from 0.1-0.6%/year compared to the beginning of last month.
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| The trend of race to increase interest rates continues to be hot when many banks have just adjusted deposit rates in many periods. (Source: Cafef) |
Specifically, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) has just sharply increased the interest rate on deposits with terms from 6 months to 11 months by 0.4%/year, to 5.2-6.2%/year.
VPBank's highest deposit interest rate also increased to 7%/year from August 1, 2022, a slight increase of 0.1%/year compared to before and applied to online deposits of VND 50 billion or more. for a term of 36 months. At the 12-month term, the interest rate also increased slightly by 0.1%/year to the highest at 6.5%/year.
Meanwhile, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) simultaneously increased from 0.1-0.5%/year in interest rates for terms of 3, 6, 12 and 24 months. In which, the highest increase was the 6-month term with 0.5%/year, bringing the deposit interest rate at this term to 5.25%/year.
However, that is still not the highest increase. Kien Long Commercial Joint Stock Bank (KienlongBank) also increased to 0.6%/year for 1-month deposit at the counter, bringing the interest rate for this term to the ceiling of 4%/year.
In other terms, KienlongBank also increased from 0.3-0.6%/year for individual customers and from 0.3-0.8%/year for corporate customers. Currently, the highest savings interest rates at KienlongBank are 7.2%/year for 24-month term and 7.3%/year for 36-month term.
Previously, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) increased the savings interest rate for additional terms from 0.1-0.2%/year, bringing the highest savings interest rate at Vietcombank to 5.8%/year. year, an increase of 0.2%/year compared to the previous year. This interest rate applies to online deposits with a term of 12 months. The same increase is also applied to 24-month term online deposits, to 5.6%/year.
For short terms, the increase was only 0.1%/year compared to the previous one. 1-month term online savings interest rate is 3.2%/year; 3 months is 3.6%/year; interest rate for term from 6 to 9 months is 4.2%/year.
As for the form of savings deposit at the counter, the interest rates of most terms are adjusted by Vietcombank to increase by 0.1%/year. Specifically, for a 12-month term, the interest rate increases from 5.5%/year to 5.6%/year; for a term of 24 to 60 months, the interest rate increased from 5.3%/year to 5.4%/year.
Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and Bank for Agriculture and Development of Vietnam (Agribank) in July 2022 also adjusted interest rates slightly by 0.1%/year in different periods. long term. The highest interest rate at these two banks is currently applied at 5.6%/year.
In August 2022, the highest interest rate in the system is being recorded at Vietnam Commercial Bank for Construction (CBBank) at 7.5%/year for a term of 24 months; 7.45%/year for 12 month term.
In the midst of the race to increase interest rates, Ho Chi Minh City Development Commercial Joint Stock Bank. Ho Chi Minh City (HDBank) again adjusted interest rates for many terms with a decrease of 0.2-0.3%/year. Savings interest rate for terms from 1 month to less than 6 months at HDBank is currently 3.9%/year; from 6 months to less than 12 months is 5.8%/year.
The highest interest rates at HDBank applied for 12- and 13-month terms are 7.1 and 7.15%/year, respectively, with a minimum savings of VND 300 billion or more. If the deposit is less than 300 billion VND, the interest rates for these terms are 6.5 and 6.7%/year.
According to a recent report by the Analysis Department of Everest Securities Corporation (EVS), under the pressure of increasing global interest rates and the VND exchange rate in recent years, the interest rates on deposits from businesses and residents have decreased. Inched up significantly compared to 2021. The lending interest rate of commercial banks has therefore also increased in the range of 30-70 basis points since the beginning of the year in the context of rapid credit growth.
EVS expects the trend of deposit interest rates to continue in the second half of 2022 while lending rates may decrease by 25-50 basis points thanks to the Government's 2% interest rate compensation package.
Regarding deposit interest rates, from August 1, 2022, banks will officially apply a new policy according to Circular 04/2022/TT-NHNN issued by the State Bank of Vietnam on the application of interest rate for early withdrawal of deposits at credit institutions, foreign bank branches. Accordingly, the capital withdrawn before maturity will be applied the lowest non-term interest rate announced by the bank at the time of withdrawal and the remaining balance will continue to enjoy the interest rate as committed at the time of withdrawal. deposit goods.
As one of the first banks to inform about the application of the feature "Premature partial withdrawal of principal" of deposits as prescribed in Circular 04/2022, Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) applies the policy This applies to Phat Loc Savings products for individual customers and Institutional Flexible Deposits for corporate customers.
Phat Loc Savings is a deposit product with a term from 1 month to 36 months and the minimum deposit amount is from 10 million VND. As for corporate customers, with a minimum deposit of 200 million VND or 10,000 USD/other foreign currency equivalent, customers can choose flexible deposit terms from 01 month or 31 days or more.
Vietbank customers can be flexible in using finance when withdrawing a part of the principal and unlimited number of withdrawals during the deposit period. The capital withdrawn before maturity will be applied the lowest demand interest rate announced by Vietbank at the time of withdrawal. The remaining balance will continue to enjoy the interest rate as agreed at the time the customer joins the deposit.
Previously, Viet A Commercial Joint Stock Bank (VietABank) also announced the application of a new interest rate policy to all existing deposits at the bank, not just deposits from August 1. On this occasion, VietABank launches the preferential savings program "Flexible withdrawal - Send gratitude" with interest rates for 8 months and 15 months up to 7.1%/year and 7.4%/year. .
Circular 04/2022/TT-NHNN replaces Circular No. 04/2011/TT-NHNN on regulations on application of interest rates in case organizations and individuals withdraw deposits before maturity at credit institutions.
The Circular stipulates that credit institutions and customers shall agree to comply with the State Bank's regulations for each specific form of deposit, and the interest rate for early withdrawal of deposits shall be agreed upon in accordance with regulations. If there is no agreement on early withdrawal of the deposit, the credit institution shall apply the interest rate for early withdrawal of the deposit in accordance with the provisions of this Circular.
(Source: VNA)
