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Saturday, October 23, 2021

Deposit rates edge up

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HCMC – Deposit rates have bounced back given the fact that money flowing into banks tends to stagnate after the Tet holiday.

Specifically, the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has increased the rates for many tenors, with the highest increase of 80 basis points over the rates early last month.

The deposit rate for deposits worth at least VND3 billion with a tenor of one to two months is 3.3%. The rate is 3.4% for savings of three to five months, 4.7% for six to 11 months, 5.4% for 12 to 35 months and 5.8% for 36 months, Nguoi Lao Dong Online newspaper reported.

The highest deposit rate at Techcombank is 5.9% per year for a tenor of 36 months with savings of at least VND3 billion. The bank has raised its deposit rates for both short- and long-term savings after repeated falls before the Tet holiday.

In addition, Vietnam Prosperity Bank (VPBank) has also hiked the rates, mainly for tenors of less than six months. For a tenor of three months, the rate is now 3.5% for savings of less than VND300 million, inching up 20 basis points month-on-month. Customers making deposits of VND3 billion and more will enjoy a rate of 3.7%, up 10 basis points.

VPBank quoted the annual deposit rate for a tenor of five months at 3.5%-3.7%, increasing 20 basis points.

Meanwhile, other banks maintained their deposit rates or have yet to make adjustments.

Deputy director of a joint stock bank said money flows into banks have not been as strong as they were in previous years. Money has flowed into the stock and real estate markets as both deposit and lending rates are low.

According to the State Bank of Vietnam, the liquidity of banks remained abundant. The average interbank rates for overnight, one-week and one-month tenors this week are 0.35%, 0.56% and 1.06%, respectively, inching down over last week.

Bao Viet Securities JSC analyzed that interbank rates for overnight, one-week and two-week tenors at the end of last month were the lowest over the past month and hovered around the lowest rates in 2020.

However, as Covid-19 is under control, vaccines are being made available and the consumer price index in February rose 1.52%, deposit rates are expected to grow in the coming periods.

In related news, the SBV governor has asked credit institutions, branches of foreign banks and branches of the central bank in localities to employ measures to remove obstacles facing customers due to Covid-19, such as extending the debt payment deadlines, reducing and exempting lending rates and offering new loans.

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