Savings interest rates increase and decrease in opposite directions

Deposit interest rates tend to stagnate as only a few banks have slightly increased their interest rates since the beginning of October, while some banks have reduced their savings interest rates.

Since the beginning of October alone, the roll call of bank Deposit interest rates have increased including: LPBank, Bac A Bank and Eximbank increased Savings interest rates. Accordingly, Eximbank adjusted interest rates ranging from 3.1%/year to 5.8%/year applied for terms from 1 to 24 months.

Bac A Bank increases interest rate at terms from 1 to 11 months with an average adjustment of 0.1 - 0.15%/year. Currently interest rate This bank's interest rate fluctuates at 3.8% - 5.85%/year for a 24-month term.

LPBank has adjusted its savings interest rates to increase sharply from 0.3 - 0.6%/year for savings from 1 - 60 months. The highest listed interest rate at this bank is 5.9%/year applied for terms of 18 - 60 months.

Savings interest rates show signs of reversal.

Meanwhile, Techcombank has reduced its savings interest rate twice, with an average reduction of 0.1% per year each time. The highest savings interest rate at Techcombank is currently listed at 4.75% per year, applicable for a 12-month term.

Previously, the wave of increased savings started in April and continued to spread. In the second half of April alone, 15 banks increased interest rates. The increase in savings interest rates continued in the following months and mainly came from the group of private joint stock banks. Accordingly, each month, more than 20 commercial banks increased their deposit interest rates.

According to experts, liquidity pressure making it difficult for some banks to raise capital, especially small banks. Small banks often have few depositors and rely heavily on the interbank market to maintain liquidity.

Many banks are forced to increase savings interest rates to attract capital. Interest rates on the interbank market have increased, contributing to increasing the cost of capital for banks. The reduction in interest rates loan to support the economy will face many difficulties.

In recent months, State Bank strengthen regulation to increase money supply into the system through the OMO channel. This move aims to help reduce this pressure, maintain stable liquidity, and at the same time solve the liquidity problem for the banking system, help reduce interest rates and support the economy. However, starting from the beginning of October, the trend of increasing savings interest rates has slowed down.

Vietcombank Securities believes that, in the context of positive macroeconomic signs, along with the State Bank's management orientation, liquidity is expected to be more stable and abundant, and interbank interest rates may decrease again.

Although there have been signs of slowing down, deposit interest rates are forecast to remain under increasing pressure in the final months of this year.

In a newly published analysis report, MB Securities said that in the context of credit growth increasing 3 times faster than the growth rate of capital mobilization, banks are rushing to interest rate increase mobilize to improve the competitiveness of savings channels compared to other investment channels on the market.

"We forecast that 12-month deposit interest rates of major commercial banks will likely increase by 0.5%, returning to 5.2-5.5%/year by the end of 2024," MB's report wrote.

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