People reduce deposits, banks increase savings interest rates

On April 10, National Citizen Commercial Joint Stock Bank (NCB) increased its deposit interest rate by 0.1 - 0.2% for 4 and 5 month terms to 3.6 - 3.7%/year; while the 1 month term decreased by 0.1% to 3.2%/year. The remaining terms have interest rates from 3.4 - 5.5%/year.

On the same day, Vietnam Prosperity Joint Stock Commercial Bank (VPBank) increased its savings interest rates by 0.3% for terms from 12 to 36 months. The interest rate for deposits from 12 to 18 months increased to 4.8 - 4.9%/year, and the interest rate for deposits from 24 to 36 months increased to 5.2 - 5.3%/year. Deposits under 12 months had interest rates from 2.4 - 4.4%/year. This was VPBank's second interest rate adjustment this month, raising the increase to 0.5%. Similarly, Kien Long Commercial Joint Stock Bank (KienLong Bank) increased its interest rates by 0.2 percentage points for deposits from 6 to 36 months. For 6-month term, this bank mobilizes 4.4%/year, 8 months up to 4.8%/year, 12 months 5.1%/year, 15 months 5.2%/year, from 18 - 36 months up to 5.5%/year...

Người dân giảm gởi tiền, ngân hàng tăng lãi suất tiết kiệm- Ảnh 1. — Savings interest rates increase

Previously, some banks increased their deposit interest rates such as Techcombank increased by 0.15% for all terms, ranging from 2.3 - 4.6%/year; Eximbank increased by 0.2%, to 2.6 - 4.8%/year... Meanwhile, some banks reduced their deposit interest rates even though they were mobilizing at low levels such as Vietcombank, Nam A Bank, SCB...

The reversal of savings interest rates comes from the fact that the amount of savings has begun to decrease due to interest rates falling to the lowest level in the past 20 years. According to the General Statistics Office, as of March 25, capital mobilization of credit institutions decreased by 0.76% compared to the end of 2023. Thus, the amount of deposits of individuals and organizations decreased by more than VND 101,600 billion, down to VND 13,272 trillion. However, credit growth since the end of March has helped mobilized interest rates stop the downward trend and tend to increase again.

On the open market, a large amount of money began to be pumped back into the banking system. From March 11 onwards, the State Bank withdrew a large amount of money, each first session up to nearly 15,000 billion VND through 28-day treasury bills. These days, the treasury bills are due to mature, so the State Bank pumped them back into the system.

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