The "race" to increase deposit interest rates has begun again?

abbank pgd.jpg — *Bank interest rates are no longer falling as sharply as before.*

Deposit interest rates are about to increase

Deposit interest rates at banks are increasing again after exactly one year of decreasing and almost no increase. Or at least, there is no longer a phenomenon of banks massively reducing deposit interest rates like in previous months.

Most recently, on April 5, Vietnam Maritime Commercial Joint Stock Bank (MSB) suddenly adjusted its deposit interest rate up after more than two months without any action on interest rates.

According to the online deposit interest rate table announced by MSB, the bank keeps the interest rate for 1-5 month term deposits at 3.5%/year.

However, the interest rate for 6-11 month deposits increased by 0.2 percentage points to 4.1% per year. The interest rate for 12-36 month deposits also increased by 0.2 percentage points to 4.5% per year. This is also the highest interest rate at MSB for regular online savings.

MSB is the 6th bank to increase interest rates in just the past half month.

Just one day earlier (April 4), Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) also increased deposit interest rates for terms from 12-18 months by 0.2 percentage points.

Specifically, the online mobilization interest rate for 12-month term increased to 5%/year, 13-month term increased to 5.2%/year, 15-month term increased to 5.8%/year, 18-month term approached the 6% mark when it was listed at 5.9%/year.

This is also the first time HDBank has adjusted interest rates after more than a month of "inaction".

The trend of increasing interest rates has been emerging since the second half of March, when four commercial banks have increased their deposit interest rates. Notably, the "big guy" Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has increased interest rates for all deposit terms by 0.1-0.2 percentage points.

Currently, the interest rate for online deposits with a term of 1 month (applied to deposits under 10 billion VND) at VPBank has increased to 2.4%/year. The interest rate for bank deposits with a term of 2-5 months is 2.7%/year, 6-11 months is 4.2%/year, 12-18 months is 4.5%/year and 24-36 months is 4.9%/year.

For deposit accounts from 10 billion VND to less than 50 billion VND and deposit accounts from 50 billion VND or more, interest rates are respectively increased by 0.1 and 0.2 percentage points.

In addition, there are interest rate increases from banks: Saigon - Hanoi Commercial Joint Stock Bank (SHB), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), and Saigon Industrial and Commercial Joint Stock Bank (Saigonbank).

SHB adjusted the interest rate for 1-2 month terms up to 2.8%/year, after increasing by 0.2 and 0.1 percentage points for each term, respectively.

Interest rates for 12-month deposits at SHB increased by 0.1 percentage points to 4.9% per year; 13-15-month deposits increased by 0.2 percentage points to 5% per year; 18-month deposits increased by 0.1 percentage points to 5.2% per year.

At Eximbank, the interest rate for 1-3 month terms was adjusted up by 0.3 percentage points. Accordingly, the 1-month term increased to 3.1%/year, the 2-month term interest rate was 3.3%/year and the 3-month term interest rate was 3.4%/year.

At Saigonbank, the 18-month interest rate increased by 0.2 percentage points to 5.4% per year; the 24-month interest rate increased by 0.3 percentage points to 5.7% per year and the 36-month interest rate increased by 0.4 percentage points to 5.8% per year.

“Special interest rate” gradually decreases

In contrast to the usual increase in deposit interest rates, a few banks still maintain the "special interest rate" policy and are showing signs of a sharp decrease.

Typically, at MSB, in addition to increasing the interest rate for regular deposits, the bank has sharply reduced the "special interest rate" from 8.5% to 7%/year from today. This interest rate only applies to 12 and 13 month terms with deposit accounts of VND500 billion or more.

Compared to the end of 2023, MSB's special interest rate has decreased sharply by 2 percentage points.

In addition to MSB, some other banks also maintain "special interest rates" but are also showing signs of decreasing.

At PVCombank, the “special interest rate” applied to a 12-13 month term with a deposit of VND2,000 billion or more is 9.5%/year, down 0.5 percentage points compared to the 10%/year rate announced last month. It is even down 1.5 percentage points compared to the end of 2023 and down 2.5 percentage points compared to August last year.

At HDBank, the “special interest rates” applied to 12- and 13-month counter deposits for deposit accounts from VND500 billion are 7.7% and 8.1%/year, respectively. This interest rate has decreased slightly by 0.1 percentage points compared to February 2024 but decreased sharply by 0.3 percentage points compared to January 2024.

Meanwhile, Dong A Bank still maintains a “special interest rate” of 7.5%/year for term deposits of 13 months or more with deposits of VND200 billion or more. This interest rate has been maintained for many months now.

Similarly, for many months now, ACB has maintained a "special interest rate" applied to 13-month term deposits of 5.6% for deposit accounts of VND200 billion or more (while the normal interest rate for this term is 4.4%/year).

Recently, another bank announced a “special interest rate” in the table of interest rates for deposits at the counter, which is An Binh Commercial Joint Stock Bank (ABBank). This bank is leading with an interest rate of up to 9.65%/year, applied to 13-month term deposits, with an amount of VND 1,500 billion or more.

According to VietNamNet statistics, since the beginning of April 2024, 6 banks have reduced deposit interest rates: Vietcombank, PGBank, SCB, Techcombank, ABBank, Dong A Bank.

Meanwhile, 2 banks increased interest rates: HDBank and MSB. In March, 4 banks increased interest rates: SHB, Saigonbank, Eximbank and VPBank.

HIGHEST DEPOSIT INTEREST RATES AT BANKS ON APRIL 6
BANK	1 MONTH	3 MONTHS	6 MONTHS	9 MONTHS	12 MONTHS	18 MONTHS
VIETBANK	3.1	3.5	4.6	4.8	5.3	5.8
OCB	3	3.2	4.6	4.7	4.9	5.4
HDBANK	2.95	2.95	4.6	4.4	5	5.9
NCB	3.3	3.5	4.55	4.65	5	5.5
NAM A BANK	2.9	3.4	4.5	4.8	5.3	5.7
VIET A BANK	3.1	3.4	4.5	4.5	5	5.3
PVCOMBANK	2.85	2.85	4.3	4.3	4.8	5.1
ABBANK	2.9	3	4.3	4.1	4.1	4.1
BAOVIETBANK	3	3.25	4.3	4.4	4.7	5.5
SHB	2.8	3	4.2	4.4	4.9	5.2
VPBANK	2.4	2.7	4.2	4.2	4.5	4.5
KIENLONGBANK	3	3	4.2	4.6	4.8	5.3
BAC A BANK	2.8	3	4.2	4.3	4.6	5.1
MSB	3.5	3.5	4.1	4.1	4.5	4.5
BVBANK	2.85	3.05	4.05	4.35	4.65	5.25
DONG A BANK	2.8	3	4	4.2	4.5	4.7
LPBANK	2.6	2.7	4	4.1	5	5.6
VIB	2.5	2.8	4	4		4.8
CBBANK	3.1	3.3	4	3.95	4.15	4.4
GPBANK	2.3	2.82	3.95	4.2	4.65	4.75
OCEANBANK	2.6	3.1	3.9	4.1	4.9	5.2
EXIMBANK	3.1	3.4	3.9	3.9	4.9	5.1
PGBANK	2.6	3	3.8	3.8	4.3	4.8
TPBANK	2.5	2.8	3.8		4.7	5
SAIGONBANK	2.3	2.5	3.8	4.1	5	5.6
SACOMBANK	2.3	2.7	3.7	3.8	4.7	4.9
MB	2.2	2.6	3.6	3.7	4.6	4.7
TECHCOMBANK	2.25	2.55	3.55	3.55	4.45	4.45
ACB	2.3	2.7	3.5	3.8	4.5
SEABANK	2.7	2.9	3.2	3.4	3.75	4.6
BIDV	1.8	2.1	3.1	3.1	4.7	4.7
VIETINBANK	1.7	2	3	3	4.7	4.7
AGRIBANK	1.6	1.9	3	3	4.7	4.7
VIETCOMBANK	1.6	1.9	2.9	2.9	4.6	4.6
SCB	1.65	1.95	2.95	2.95	3.95	3.95