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After Tet, many banks lower deposit interest rates

by Asia Insider

Like at  Techcombank, the highest deposit interest rate at this bank is 9.2%/year. While before Tet, this figure was 9.5%/year.

To enjoy the interest rate of 9.2%/year, depositors must be VIP customers of type 1, deposit with a term of 12 months with a minimum balance of 3 billion VND.

Regular customers who deposit for a 6-month term now only get an interest rate of 8.5%/year, instead of over 9% like before Tet.

At  Sacombank , previously the highest interest rate this bank mobilized was 9.8%/year. However, up to now, the highest interest rate is only 9.2%/year, applied to online deposits, with term from 15 to 36 months.

At  PVCombank  , there is a similar phenomenon. Previously, the highest interest rate at this bank was 9.9%/year for customers depositing money via the online channel in the form of a ladder deposit with a term of 36 months. However, up to now, this type of product only has an interest rate of 9.5%/year.

Saigonbank  – the first bank to list a deposit interest rate of up to 10.5%/year last year also took action to lower interest rates. Accordingly, the highest interest rate at this bank is only 9.5%/year, applicable to 13-month term savings, both online and at the counter.

Previously, under the program “Deposit today – Earn interest immediately”, when depositing money at the counter at  BaoVietBank  , customers can receive the highest interest rate of 9.8%/year (6-month term); 10.2%/year (13-month term); 10.3%/year (15-month term). Up to now, this program is no longer available, but interest rates above 9% are mostly only applied on online channels. Specifically, when sending money through EzSaving/ BAOVIET pay for a 6-month term, customers can receive the highest interest rate of 9.3%/year. Term of 13 and 15 months will have the highest yield of 9.5% and 9.4%, respectively.

OceanBank  – a bank that previously listed the highest deposit interest rate up to 10%/year, currently the highest interest rate is only 9.2%/year.

Some other banks have also lowered the highest interest rates such as  DongABank  (from 9.85% to 9.5%/year); BacABank  (from 9.8%/year to 9.5%/year); VietCapitalBank  (from 9.5%, now only 8.9%/year).

In the big 4 block, interest rates in general did not change much compared to before Tet. BIDV and VietinBank both have the highest interest rate of 8.2%. Following is Agribank 7.9%/year, Vietcombank 7.4%/year.

According to Dr. Dinh The Hien, although the State Bank has requested to control the deposit interest rate below 9.5%/year, this is still a high number compared to every year. Cash flow is still and will find savings.

“The deposit interest rate spectrum in the first quarter of 2023 will be at 6.5-7% for large, good-quality banks and 8-9% for small banks. It is expected that by the end of the second quarter, the interest rate will be will return to normal around 7%,” said Mr. Hien.

Many experts estimate that in the fourth quarter of the year, due to the seasonal factor of Tet, businesses must concentrate capital to produce goods and do business. People also have the mentality to reserve cash to spend on New Year’s Eve. Therefore, the amount of deposits in the banking system is somewhat less. Banks, to ensure liquidity, also have to accept deposits with higher interest rates.

However, after the “travelling” cash flow returned, the liquidity situation was less stressful. Therefore, banks also do not have too much incentive to mobilize with high interest rates, so they have lowered input interest rates to have room to reduce output interest rates.

Source: CafeF

Source: Vietnam Insider

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