Bank interest rates increase sharply in December: VietinBank opens the race, Big4 gradually joins the game

Online savings interest rates of Big4 group

Term	VietinBank	BIDV	Vietcombank	Agribank
Under 3 months	2.40%	2.00%	1.60%	2.40%
3 - 5 months	2.80%	2.30%	1.90%	3.00%
6 - 11 months	3.90%	3.30%	2.90%	3.70%
12 - 18 months	4.70%	4.70%	4.60%	4.80%
24 - 36 months	5.00%	4.90%	4.70%	4.90%

Saving interest rates at the counter (Offline) of Big4 group

Term	VietinBank	BIDV	Vietcombank	Agribank
Under 3 months	1.60%	1.6-2.0%	1.60%	2.40%
3 - 5 months	1.90%	1.9-2.3%	1.90%	3.00%
6 - 11 months	3.00%	~3.3%	2.90%	3.70%
12 - 18 months	4.70%	4.70%	4.60%	4.80%
24 - 36 months	4.80%	4.90%	4.70%	4.90%

Bank interest rates increase again, VietinBank leads Big4 group

While joint stock banks have sharply increased deposit interest rates since the beginning of the fourth quarter, the group of state-owned banks has remained stable for many weeks. By the end of November, bank interest rates began a new race when VietinBank was the first unit in the Big 4 group to adjust online savings interest rates up.

According to the newly updated interest rate schedule, the 1-2 month term increased to 2.4%/year, equivalent to an increase of 0.4 percentage points. The 3-5 month term was raised to 2.8%/year, an increase of 0.5 percentage points. Notably, the 6-11 month term interest rate surpassed 3.9%/year after an increase of 0.6 percentage points.

Despite the drastic adjustment of online interest rates, VietinBank still maintains the savings rate at the counter at a range of 1.6% - 4.8%/year depending on the term. The term of 24 months or more continues to be the highest, reaching 4.8%/year.

Interest rates at Big4 are still low but tend to increase.

Although VietinBank has increased online interest rates, the interest rates of the big state-owned banks are still among the lowest in the market. Agribank is applying 2.4%/year for less than 3 months, 3%/year for 3-5 month terms and a maximum of 4.9%/year for 24-36 month terms.

BIDV also increased slightly in many online terms, while Vietcombank still maintained the lowest level among Big4 with 1.6%/year under 3 months and a maximum of 4.7%/year for long terms.

Instead of competing on interest rates, state-owned banks focus on boosting promotions. Agribank offers more than 3,300 prizes worth a total of VND9.7 billion to depositors. Vietcombank launches a large-scale lottery and Loyalty points program, with a special prize worth VND1 billion. VietinBank also applies gift incentives and increases bonus points for customers who transact from VND200 million or more.

Bank interest rates increase sharply in December: VietinBank opens the race, Big4 gradually joins the game

Reasons for increased interest rates: Year-end liquidity and explosive capital demand

According to analysts, the trend of increasing bank interest rates during this period mainly stems from seasonal factors. The end of the year is the period when businesses increase their demand for loans to serve production, import goods and prepare for Tet, while the growth of mobilization cannot keep up. Banks are forced to raise interest rates to attract cash flow.

Dr. Nguyen Tri Hieu said that the pressure to increase mobilization will continue in December, because banks want to boost credit to complete the yearly plan. However, if mobilization interest rates continue to increase, loan interest rates will likely increase as well.

From another perspective, Associate Professor Dr. Dinh Trong Thinh commented that the interest rate increase is only short-term and may end in December. When capital costs increase, banks will be more cautious in expanding credit, causing capital flow to the market after the peak period at the end of the year to slow down.

Year-end interest rate outlook and factors to watch

According to experts, the bank interest rate market in the remaining weeks of the year will be affected by three main factors: system liquidity, peak season credit demand and the State Bank's management direction. If mobilization improves, the pressure to increase interest rates may decrease; on the contrary, the interest rate race between banks may heat up.

The context of cooling international interest rates also creates conditions for Vietnam to maintain stable lending interest rates. However, caution is still necessary when the market enters a sensitive period in terms of capital demand.