The Big 4 firms raise deposit interest rates.

TPO - Amidst the continued increase in capital demand from the economy, the race to raise funds among banks is heating up as the group of state-owned commercial banks (Big 4) begins to adjust deposit interest rates upwards.

On June 1st, according to BIDV's newly released online deposit interest rate schedule, the interest rate for online deposits with terms of 6-11 months has been raised to 6.6%/year, an increase of 1.2% compared to before. For terms of 12-36 months, the interest rate has been uniformly raised to 6.8%/year. Specifically, the 12-18 month term increased by 0.9%, while the 24-36 month term increased by 0.8%.

This is a fairly significant adjustment compared to the deposit interest rate levels in recent times. After raising interest rates, BIDV has brought its online interest rate schedule in line with most of the other banks in the Big 4 group. Currently, only Vietcombank maintains a slightly lower interest rate for the 24-month term at 6.3%/year.

Deposit interest rates tend to increase (photo: Nhu Y).

Vietinbank lists interest rates at 5.9%/year for terms of 12-18 months and a maximum of 6%/year for terms of 24-36 months.

Interest rates for 6-11 month terms at Agribank are currently at 4% per year, while rates for terms of 12 months or more range from 5.9-6% per year.

BIDV's aggressive interest rate hike is seen as a signal indicating increasing pressure to raise capital within the banking system. Recently, credit growth has consistently outpaced deposit growth, forcing many banks to intensify deposit-attracting programs to ensure sufficient funds for lending.

Not only state-owned banks, but also joint-stock commercial banks are maintaining quite attractive interest rates for medium and long-term maturities. As of June 1st, PVcomBank continues to lead the market in deposit interest rates with 10% per year for a 13-month term. However, this rate only applies to deposits of at least VND 2,000 billion. For regular customers, the highest interest rate at PVcomBank is 5.8% per year when depositing online.

Following closely behind is HDBank with an interest rate of 7.6% per year for a 13-month term, applicable to customers maintaining a minimum balance of VND 500 billion. For regular customers, the highest online deposit interest rate offered by this bank is 5.5% per year.

Among banks applying standard deposit terms, some are offering remarkably high interest rates. PGBank currently offers 7% per annum for 12-13 month terms, which is also the highest interest rate offered by this bank. Meanwhile, Cake by VPBank is leading the digital banking group with an interest rate of 7.4% per annum for terms from 10 to 24 months when customers choose to receive interest at the end of the term.

The upward trend in deposit interest rates at both state-owned and joint-stock commercial banks indicates a more intense competition for capital. With credit being boosted to support economic growth, deposit interest rates are likely to remain high in the near future, especially for medium and long-term maturities. This creates opportunities for depositors while reflecting the growing capital needs of the banking system.

At the orientation meeting on the afternoon of April 9th, the State Bank of Vietnam requested credit institutions to reduce operating costs and profit margins to lower lending interest rates, while also addressing the situation of excessive competition in deposit mobilization to ensure the stability of the credit system.

Following the directive, many banks simultaneously adjusted deposit interest rates downward across various maturities, especially in the medium and long-term range. However, deposit interest rates have tended to rise again since the end of May. In response to this development, the State Bank of Vietnam has repeatedly issued directives to inspect and monitor the implementation of the interest rate reduction policy.

Many forecasts suggest that deposit interest rates are likely to remain stable or increase slightly for some longer maturities in the near future, but sharp increases are unlikely as macroeconomic stability remains the priority.

Source: https://tienphong.vn/nhom-big-4-tang-lai-suat-huy-dong-post1848083.tpo