Banks are preparing to increase savings interest rates.

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Most recently, Vietnam International Commercial Joint Stock Bank (VIB) adjusted its 1-month deposit interest rate up by 0.1%/year, bringing the listed interest rate to 2.6%/year. Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ) raised its deposit interest rate for some long terms by 0.3%/year, bringing the interest rate applied for 24-36 month terms to over 5%/year; the interest rate for 12-18 month terms also increased to 4.8%/year. Similarly, Kienlong Commercial Joint Stock Bank (Kienlongbank) and Vietnam Export Import Commercial Joint Stock Bank (Eximbank) also increased their interest rates for some terms by 0.2%/year.

Although the deposit interest rates have only increased slightly for a few terms, this move by commercial banks is also attracting the attention of depositors. According to economic experts, although the deposit interest rates are still at the lowest level, there are signs of a breakthrough in increasing interest rates from some private banks. The main reason for this is that the amount of money deposited in banks has decreased, while the demand for loans has increased. It is forecasted that there will not be much room for banks to reduce deposit interest rates, which is also an early sign that deposit interest rates are about to hit rock bottom.

Source: Economic Development Column April 15, 2024

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