Deposit interest rates continue to rise

Hanoi (VNS/VNA) - Viet Capital Bank has unveiled a certificate of deposit for individual and institutional customers with an interest rate of up to 8.4% depending on the tenor.

Customers can buy CoDs for just 10 million VND (417 USD) and receive interest of 7.5%, 7.8%, 8%, and 8.2% for terms of 6, 9, 12, and 15 months. For 18-month term they can get 8.4%.

After six months they can freely transfer the CoDs and still enjoy higher interest rates than ordinary savings deposits, a bank spokesperson said.

After the State Bank of Vietnam raised its policy rate, many banks, including State-owned ones, have raised interest rates for VND deposits.

ABBANK has the highest rate of 8.8% for 13-month deposits of 500 billion VND (20.8 million USD) and above.

Banks are also offering promotions to attract deposits.

For instance, from October 3 to December 30, customers who make deposits of 25 million VND (1,040 USD) and above at Vietbank can receive gifts such as multi-function electric cooker, steam iron, vacuum cleaner, umbrella, kitchen cutting board, and others depending on the amount and term.

They can also participate in a lucky pin on the Vietbank digital app with prizes of thousands of e-vouchers worth from 20,000 VND to 1 million VND, and a lucky draw at the end of the programme with prizes worth a total of 6.5 billion VND, including a cash prize of 1 billion VND, nine first prizes of 0.6 tael of gold each and 18 second prizes of 20 million VND each.

As of September 20 this year, deposit mobilisation by credit institutions increased by 4.04% while credit growth was 10.54%.

The rapid increase in credit has put pressure on banks’ liquidity.

ACB Securities said the credit cap would be increased by 2% in the last quarter, while the SBV would continue to sell US dollars to keep the exchange rate in check, which would also put pressure on VND liquidity.

Public spending is expected to spurt in the remaining months of the year, meaning the money held by the State Treasury in banks will be drawn.

Due to these factors, ACBS said, banks would probably increase deposit interest rates by another 0.5 percentage points this year to ensure liquidity./.