Deposit interest rates start to 'heat up'

Since the beginning of November, more than 10 banks have increased deposit interest rates, including banks in the Big 4 group.

Customers transact at HDBank (District 1, HCMC) - Photo: QUANG DINH

Meanwhile, the State Bank has just issued Circular 48 requiring banks when receiving deposits to not offer promotions in any form (in cash, interest rates and other forms) that are not in accordance with the law.

Interest rates increased across the board

According to Tuoi Tre, since the beginning of November, a series of banks such as LPBank, Nam A Bank, IVB, VietABank, VIB, MB, Agribank , Techcombank, ABBank, VietBank... have increased their deposit interest rates. Currently, the 12-month deposit interest rate has reached 5.95%/year, and the 13-month deposit interest rate has exceeded 6%/year. Deposit interest rates above 6%/year for long terms have appeared at many banks.

Notably, after a long period of maintaining low interest rates, Agribank has increased interest rates since November 15 with an average increase of 0.2 - 0.3%. Accordingly, the 6-month and 12-month terms are 3.5%/year and 4.7%/year. The highest interest rate of 4.8%/year is applied to the 24-month term.

At Nam A Bank, the interest rate for over-the-counter savings deposits increased by 0.2% to 6%/year for deposits from 500 billion VND, with a term of 24 months. As for online savings deposits, Nam A Bank increased the interest rate sharply by up to 0.7%. Currently, the highest interest rate for a 36-month term is 5.9%/year; for 1-2 months it is 4.5%/year; for 3 months it is 4.75%/year; for 10 months it is 5.3%/year.

Even depending on the customer, each bank has different policies. For example, at VPBank , priority customers are given 0.1% interest; if customers deposit over 300 million VND, VPBank adds an additional 0.5% interest.

Interest plus, gifts for depositors

Recently, banks are increasingly competing to attract deposits not only by interest rates but also by many attractive promotions. Typically, SHB has organized a lucky draw to give away savings books to customers. Many other banks also give away gifts such as umbrellas, raincoats, and thermos cups to attract depositors.

Faced with the wave of interest rate hikes, customers are tending to "bargain" for long-term interest rates or switch to other banks with better incentives.

Ms. NTH in Thanh Xuan district (Hanoi) has just closed her savings book of 500 million VND to switch to a 12-month term instead of 6 months as before, with an interest rate of 5.9%/year thanks to an additional 0.5% for the deposit of over 300 million.

Meanwhile, Mr. TMD in Hai Ba Trung District (Hanoi) chose to make a short-term deposit of 1 month for 1.2 billion VND, planning to make a long-term deposit near Tet when interest rates are usually higher. He also switched to another bank because he was given a water bottle and had the chance to win a savings book worth 300 million VND when participating in a lottery.

Banking expert Nguyen Tri Hieu said that the large capital demand of businesses at the end of the year has forced banks to increase deposit interest rates. This trend may continue from now until the end of the year.

According to data from the State Bank, by the end of August, people's total deposits in banks had reached a record level of 6,924,889 billion VND.

Customers transact at Techcombank (District 1, HCMC) - Photo: QUANG DINH

Is there a ban on bank promotions?

In recent days, many people have been stirred up by the news that the State Bank has just issued Circular 48 stipulating that when receiving deposits, banks are not allowed to conduct promotions in any form (in cash, interest rates and other forms) that are not in accordance with the law.

Many people wonder if this means that banks are not allowed to offer promotions to depositors?

Speaking to Tuoi Tre , the deputy general director of a large joint stock bank in Ho Chi Minh City said that the State Bank does not prohibit banks from offering promotions to depositors, it only prohibits promotions that are "not in accordance with the law", that is, promotions that exceed the ceiling.

Currently, the interest rate ceiling applies to terms under 6 months. This ceiling is decided by the Governor of the State Bank for each period and for each type of credit institution.

Accordingly, the maximum interest rate applied to non-term deposits and deposits with terms of less than 1 month is currently at 0.5%/year; for deposits with terms from 1 month to less than 6 months is at 4.75%/year. In particular, the maximum interest rate for deposits in VND at people's credit funds and microfinance institutions is at 5.25%/year.

Interest rates for deposits with terms of 6 months or more are determined by credit institutions and foreign bank branches based on market capital supply and demand.

Thus, if there is a promotion, the bank must ensure that the interest rate and promotional gifts added together will not exceed the prescribed ceiling.

Why do banks increase interest rates?

According to information from Deputy Governor of the State Bank Dao Minh Tu, credit by the end of October 2024 increased by 10% compared to the end of 2023. From now until the end of the year, banks are required to fully meet the capital needs of the economy, especially capital for production, business and consumption during the Lunar New Year 2025.

Experts say that increasing bank deposit interest rates is necessary for two main reasons.

Firstly, the demand for capital loans of enterprises increases at the end of the year. Secondly, the recent sharp increase in exchange rates and gold prices has caused people to tend to transfer part of their capital to these investment channels.

Therefore, banks are forced to adjust interest rates to protect the interests of depositors, not to change monetary policy.

Regarding the direction of monetary policy management, the Deputy Governor affirmed that the goal of supporting capital for businesses and the economy will continue to be maintained. The State Bank is considering options for operating interest rates in the coming time, which can be kept unchanged or further reduced depending on factors such as macroeconomic stability, inflation control and growth support goals.

To support businesses and people, the State Bank has directed credit institutions to implement many positive solutions such as reducing costs, reviewing and exempting unnecessary fees.

In addition, banks are required to simplify lending procedures and increase the application of information technology in the lending process to contribute to reducing lending interest rates, creating favorable conditions for customers to access bank loans.

Source: https://tuoitre.vn/lai-suat-huy-dong-bat-dau-nong-20241123234657242.htm