Banks raise deposit interest rates

Maritime Bank is the latest bank to have raised its short-term Vietnamese dong deposit rates by 0.2% per year, to touch 4.9%-5.2% as of July 26.

On June 20, Maritime Bank also increased its short-term deposit rates by 0.1%.

Saigon Commercial Bank (SCB) has also announced, effective from July 25, a sharp rise of 0.4% in the one-month deposit rate, which is now 5.4%.

VPBank also raised its rate on July 13, making it the third increase of the bank’s rate in July. During the month, the bank mainly increased long-term deposit rates.

Accordingly, VPBank’s rates for 15- to 18-month deposits are up 0.2% to touch 6.8%-7.2% and for 24- to 36-month deposits, the rates have risen by 0.3% to reach 7.6%-7.7%.

Previously, in a new rate list announced on July 12, Asia Commercial Bank (ACB) also increased its short-term deposit rates by 0.2% to touch 4.6%-4.9%.

VietABank announced the first rate increase this year for deposits of more than six months on July 11. Accordingly, nine-month and 12-month deposits have rates of 6.9% and 7.5%, respectively, up 0.2%. There is an increase of 0.3% for 13-month deposits and 15- to 36-month deposits, lifting the rates to touch 7.6% and 7.7%, respectively.

Due to the deposit rate hikes, there is some concern that a lending interest rate hike is imminent.

However, the State Bank of Vietnam (SBV) said in a report released last week that it would ask commercial banks to keep the rates stable over the remaining months of the year.

SBV said it would continuously instruct commercial banks to balance their mobilised capital sources and lending capital sources to stabilise deposit interest rates in the remaining months of the year.

Better business performance and lower input costs are also required for maintaining lower lending rates.