Bank interest rates increase: Market situation and new trends

DNHN - On August 13, 2024, significant changes were recorded in bank interest rates. 12 banks have increased their deposit rates since the beginning of August. Notably, many banks have raised their 12-month term interest rates above 5% per year.

In recent days, the banking market has witnessed a strong surge in deposit interest rates. Particularly, since the beginning of August 2024, 12 banks have adjusted their rates upwards, reflecting a major shift in financial policy. Meanwhile, only one bank has lowered its interest rates during this period. This indicates that banks are trying to attract capital and improve liquidity amid an unstable economy.

The increase in deposit interest rates is primarily concentrated in long-term deposits, with the interest rate for 12-month terms now exceeding 5% per year. ABBank currently leads with the highest rate of 6% per year, applied only to this term. Other banks, such as BaoViet Bank, BVBank, and Saigonbank, have also adjusted their rates to 5.8% per year for 12-month terms. This trend shows that banks are competing to attract long-term capital, while interest rates for short-term deposits and state-owned banks remain lower.

The rise in interest rates is a sign of a financial market undergoing adjustments, reflecting changes in monetary policy and capital requirements. Specifically, state-owned banks like Agribank, VietinBank, Vietcombank, and BIDV still maintain lower rates compared to other commercial banks, indicating a clear differentiation in interest rate policies between these groups.

The current situation suggests that the banking market is going through a significant transition. Banks are adjusting their deposit rates to meet capital demands and compete in a rapidly changing economic environment. This trend is expected to continue in the coming months as banks further adjust their policies to optimize capital and maintain financial stability.

ABBank currently tops the interest rate chart with a rate of 6% per year for 12-month deposits, the highest rate available. Other banks, such as BaoViet Bank, BVBank, and Saigonbank, also offer a rate of 5.8% per year for the same term. Bac A Bank and GPBank list their rates at 5.75% per year, while KienLong Bank and VietBank offer 5.6% per year.

Interest rates of 5% or higher have now become the standard for 12-month terms, with very few banks maintaining rates below 5%. Techcombank currently offers the lowest rate at 4.95% per year for deposits under 1 billion VND. ACB provides a rate of 4.8% per year, while Agribank, BIDV, and VietinBank uniformly list their rates at 4.7% per year. Vietcombank and SCB have rates of 4.6% per year and 3.7% per year, respectively.

Since the beginning of August, 12 banks have raised their deposit rates, with Sacombank making two adjustments. Conversely, SeABank is the only bank to have lowered its rates during this period.

According to the financial report for Q2 2024, commercial banks have mobilized a total of 12.309 trillion VND in the first half of the year. Among these, the four largest state-owned banks—Agribank, VietinBank, Vietcombank, and BIDV—dominate in capital mobilization, with total deposits reaching 6.36 trillion VND, accounting for 52% of the total outstanding loans of all 30 banks. Notably, despite leading in capital mobilization, this group of state-owned banks currently offers the lowest deposit interest rates in the market.

Nguyen An