Bank interest rates continue to increase by 0.1-0.6%/year, with no room for reduction.

The latest savings interest rate schedule applied at banks since July 1 has had many adjustments, in which, the increasing trend is still commonly recorded at the rate of 0.1-0.6%/year depending on the term.

Although the trend of increasing interest rates has been common in recent times, on the contrary, there are still banks that have adjusted their rates slightly downward. (Source: Agribank )

Experts predict that the trend of increasing deposit interest rates will continue in the coming time, somewhat increasing pressure on the growth rate of banks.

Specifically, An Binh Commercial Joint Stock Bank (ABBank) adjusted the 6-month savings interest rate up 0.8%/year to 5.6%/year, the 7-11-month term up 1.4%/year to 5.8%/year and the 12-month term reached 6%/year after increasing 0.4%/year.

Meanwhile, Military Commercial Joint Stock Bank (MB) increased 0.2%/year for 6-month term interest rate to 3.8%/year, 9-month term to 3.9%/year and 12-month term to 4.7%/year.

Similarly, at Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ), the deposit interest rate increased slightly by 0.1%/year for 6 and 9 month terms to 4.3%/year, 12 month term to 4.9%/year, and 24 month term increased by 0.3%/year to 5.3%/year.

In the group of state-owned commercial banks, Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) has recently slightly increased online deposit interest rates for some terms by 0.2-0.3%/year.

Currently, the online deposit interest rate at this bank is 2%/year for a term of 1-2 months; 2.3%/year for a term of 3-5 months; 3.3%/year for a term of 6-11 months; 5%/year for a term of 24-36 months.

In particular, the savings interest rate for 12-18 month terms is kept unchanged by VietinBank at 4.7%/year.

As for interest rates for savings deposits at the counter, both VietinBank and the remaining 3 state-owned commercial banks still maintain the previous interest rate schedule.

Specifically, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) mobilizes deposits with terms of 6 and 9 months at an interest rate of 2.9%/year, terms of 12 months are 4.6%/year and terms of 24 months or more are 4.7%/year.

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and Vietnam Bank for Agriculture and Rural Development (Agribank) maintain interest rates for 6- and 9-month terms at 3%/year, and for 12- and 24-month terms or more at 4.7%/year.

At VietinBank, interest rates for 6 and 9 month terms are 3%/year, 12 month terms are 4.7%/year and 24 month terms are 4.8%/year.

Although the trend of increasing interest rates has been common in recent times, on the contrary, there are still banks that have adjusted their rates slightly downward.

Accordingly, Vietnam International Commercial Joint Stock Bank (VIB) has just reduced the interest rate by 0.1%/year for deposits with terms from 6 to 11 months. The interest rate for 6-8 months has decreased to 4.2%/year and for 9-11 months to 4.3%/year.

This is the second consecutive time VIB has adjusted its deposit interest rates down within just one week. Previously, the bank had reduced interest rates by 0.1-0.2% per year for deposits with terms of 6-36 months on June 26.

According to a report by Vietcombank Securities Joint Stock Company (VCBS), interest rates will no longer have room to decrease further under pressure from exchange rates and inflation.

Inflationary pressure will increase from the third quarter of 2024 due to food prices, electricity prices, housing prices and wage adjustments. Pressure from the USD/VND exchange rate difference makes it difficult for interest rates to decrease further.

Source: https://baoquocte.vn/bank-interest-rate-continues-to-increase-from-01-06-years-khong-con-du-dia-giam-277171.html