Interest rate hikes slowed down in September

Deposit interest rates at commercial banks became less volatile in September as the upward trend in interest rates showed signs of slowing down.

Deposit interest rates only really started to rise from April 2024 when, for the first time in a year, 15 banks increased interest rates in a single month. Since then, the market has experienced six consecutive months of continuously rising deposit interest rates.

However, deposit interest rates at commercial banks became less volatile in September as the upward trend showed signs of slowing down.

To date, only 12 banks have increased deposit interest rates since the beginning of September, and only two banks, OceanBank and Dong A Bank, have adjusted their rates upwards twice this month.

The remaining 10 banks that increased interest rates this month include: VietBank, GPBank, Agribank, Bac A Bank, NCB, OCB, BVBank,ACB , PGBank, and Nam A Bank.

Conversely, ABBank is the only bank to reduce deposit interest rates this month, with a decrease of 0.1-0.4% per year for terms of 1-12 months.

The statistics above show that the upward trend in deposit interest rates is showing signs of slowing down compared to previous months. Specifically, in August 2024, 15 commercial banks increased deposit interest rates, with as many as 6 banks adjusting their rates upwards twice in that month.

In July 2024, interest rates increased at 19 commercial banks, including VietBank, which raised interest rates three times that month.

Even in June 2024, as many as 23 commercial banks increased deposit interest rates, with 12 of them raising rates twice in that month.

Previously, according to VietNamNet statistics, 20 banks increased deposit interest rates in May 2024, withVIB and ABBank experiencing four interest rate adjustments in just one month, and eight other banks increasing interest rates twice.

Interest rate trends over 12 months.jpg — *Trends in 6-month and 12-month deposit interest rates over the past 5 years. Source: BVSC.*

Returning to interest rate developments in September , OceanBank saw the strongest increase, rising by 0.6% per year for 1-11 month terms and 0.3% per year for 12-15 month terms. The bank also increased interest rates for 18-36 month terms by 0.1% per year to 6.1% per year.

Following OceanBank, the banks that increased deposit interest rates most significantly for 1-3 month terms were Dong A Bank (0.4%/year) and Agribank (0.3%/year), while an increase of 0.2%/year was also implemented at BaoViet Bank, BVBank, GPBank, VietBank, and OCB.

Regarding 6-month term savings interest rates, following OceanBank in terms of interest rate increases in September, Dong A Bank increased by 0.3%/year; savings interest rates at GPBank and OCB increased by 0.2%/year, while at Bac A Bank they increased by 0.15%/year.

The highest increase in 9-month deposit interest rates in September was 0.6%/year at OceanBank and Dong A Bank, while the increase was 0.2%/year at GPBank and 0.15%/year at Bac A Bank. The lowest increase was 0.1%/year, implemented by NCB, OCB, Agribank, and ACB.

The highest increase in interest rates for 12-month deposits in September was 0.5%/year at Dong A Bank. Only 5 banks increased interest rates for this term, including OceanBank with a 0.3%/year increase; Bac A Bank, ACB, and NCB all increased by 0.1%/year.

DEPOSIT INTEREST RATES FOR MAJOR TERMS AS OF SEPTEMBER 28TH AND INTEREST RATE FLUCTUATIONS IN SEPTEMBER (%/YEAR)
BANK	3 MONTHS	6 MONTHS	9 MONTHS	12 MONTHS
Interest rate	+/-	Interest rate	+/-	Interest rate	+/-	Interest rate	+/-
AGRIBANK	2.5	0.3	3.3	0.1	3.3	0.1	4.7	0
MB	2.3	0	3.3	0	3.3	0	4.7	0
VIETINBANK	2.3	0	3.3	0	3.3	0	4.7	0
VIETCOMBANK	1.9	0	2.9	0	2.9	0	4.7	0
ABBANK	3.7	-0.3	5	0	5.2	-0.3	5,6	-0.4
ACB	3.5	0.1	4.2	0.05	4.3	0.1	4.9	0.1
BAC A BANK	3.95	0.15	5.15	0.15	5.25	0.15	5.7	0.1
BAOVIETBANK	4	0.2	5.2	0	5.4	0	5.8	0
BVBANK	4	0.4	5.2	0.1	5.5	0	5.8	0
CBBANK	4	0	5.55	0	5.5	0	5.7	0
DONG A BANK	4	0.2	5.2	0.3	5.5	0.6	5.8	0.5
EXIMBANK	4.3	0	5.2	0	4.5	0	5.2	0
GPBank	3.72	0	5.05	0.2	5.4	0.2	5.75	0
HDBANK	3.95	0	5.1	0	4.7	0	5.5	0
KIENLONGBANK	3.7	0	5.2	0	5.3	0	5,6	0
LPBANK	3.5	0	4.7	0	4.8	0	5.1	0
MB	3.7	0	4.4	0	4.4	0	5.1	0
MSB	3.7	0	4.6	0	4.6	0	5.4	0
NAM A BANK	4.1	0	5	0	5.2	0	5,6	0
NCB	4.1	0.1	5.45	0.1	5.65	0.1	5.8	0.1
OCB	4.1	0.2	5.1	0.2	5.1	0.1	5.2	0
OCEANBANK	4.4	0.6	5.4	0.6	5.5	0.6	5.8	0.3
PGBANK	3.8	0.1	5	0	5	0	5.5	0
PVCOMBANK	3.6	0	4.5	0	4.7	0	5.1	0
SACOMBANK	3.6	0	4.9	0	4.9	0	5.4	0
SAIGONBANK	3.6	0	4.8	0	4.9	0	5.8	0
SCB	1.9	0	2.9	0	2.9	0	3.7	0
SEABANK	3.45	0	3.75	0	3.95	0	4.5	0
SHB	3.8	0	5	0	5.1	0	5.5	0
TECHCOMBANK	3.45	0	4.55	0	4.55	0	4.95	0
TPBANK	3.8	0	4.7	0		0	5.2	0
VIB	3.6	0.1	4.6	0	4.6	0		0
VIET A BANK	3.7	0.1	4.8	0	4.8	0	5.4	0
VIETBANK	4	0.2	5.2	0	5	0	5,6	0
VPBANK	3.8	0	5	0	5	0	5.5	0

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