Banks raise deposit interest rates

The Vietnam Prosperity Joint-Stock Commercial Bank, or VPBank (VPBank - Code: VPB), announced the new interest rate table with an increase of 0.3%/year in several periods that will begin on October 6.

For 6-month, 12-month, and 36-month term deposits at VPBank, interest rates have increased by 0.3%/year. When depositing VND50 billion (~ $2 million) or more, the greatest interest rate for a duration of 36 months is 7.8%.

With deposit amounts ranging from VND300 million (~ $12,500) to VND50 billion (~ $2 million), interest rates at terms have also increased from 5.8% to 6.9%.

The maximum interest rate for a duration of one to three months is 5%; for a term of six months, it is 7.2%. The maximum listed interest rate at Techcombank for a 12-month term is 7.5%/year.

Sacombank has announced that deposit interest rates will change effective October 6. An adjustment is made to the typical term interest rate, increasing it by 0.5-7%.

Currently, banks charge accounts established over the counter with a maximum annual interest rate of 7.5%. When making a deposit into an online account for a period of six months or more, the interest rate starts at 7%.

On October 8, SCB also increased the deposit interest rate schedule for most terms for many products.

In particular, the 6-month savings interest rate with online savings rose by 0.95 percentage points, from 6.85%/year to 7.8%/year. The interest rate at the 9-month term climbed from 7% to 8% per year by 1 %; at the 12-month term, it jumped by 0.9 % to 8.2% per year.

The Fed is expected to raise by 1.75 to 2.5 percentage points from now through the first quarter of 2023, according to Mr. Tran Ngoc Bau, CEO of WiGroup.

That indicates that following the interest rate increase In this situation, Vietnam's executive branch will continue to raise interest rates, although Mr. Bau predicts that these increases will only be 1.5–2%.

Source: Doanh Nghiep & Kinh Doanh