The race for interest rate hikes among commercial banks is showing signs of cooling down. Many banks have adjusted the rate by several percentage points per year after the Lunar New Year (Tet) holiday and have set stricter conditions for customers to enjoy the high rates.
At Techcombank, the highest deposit interest rate at the bank is currently 9.2 percent per year, against 9.5 percent per year before Tet. To enjoy the 9.2 percent interest rate, depositors must be VIP customers with minimum savings of VND 3 billion over 12 months. For regular customers, the rate for 6-month deposits at the bank is also down to 8.5 percent per year from more than 9 percent before Tet.
At Sacombank, the highest interest rate before Tet was 9.8 percent yearly. However, the highest rate is currently only 9.2 percent per year, applied to online deposits with terms from 15 to 36 months.
Saigonbank, the first bank to list a deposit interest rate of up to 10.5 percent per year last year, also lowered the savings interest rate. Accordingly, the highest interest rate at the bank is only 9.5 percent per year, applicable to 13-month deposits, both online and at the counter.
The same move was seen at BaoVietBank. Before Tet, customers could receive the highest interest rates of 9.8 percent, 10.2 percent, and 10.3 percent per year for six-month, 13-month, and 15-month terms, respectively, under a particular savings deposit. However, the program has ended, and the rate of more than 9 percent is currently only applied to online channels. Specifically, when depositing through EzSaving/ BAOVIET Pay for a 6-month term, customers can receive the highest interest rate of only 9.3 percent per year. For 13 and 15 months, the rate is 9.4 percent and 9.5 percent, respectively.
Some other banks also lowered their highest interest rates, such as DongABank (from 9.85 percent to 9.5 percent per year), BacABank (from 9.8 percent to 9.5 percent per year), and VietCapitalBank (from 9.5 percent to 8.9 percent per year).
At the four biggest banks, BIDV, VietinBank, Agribank, and Vietcombank, interest rates generally have not changed much compared to before Tet. BIDV and VietinBank list the highest interest rate of 8.2 percent per year, while the figure at Agribank is 7.9 percent and Vietcombank 7.4 percent.
According to experts, savings at banks declined in the fourth quarter of last year due to the seasonal factor of Tet when firms concentrated capital to produce goods and pay year-end bonuses to employees. At the same time, individuals also often reserved more cash for spending for Tet. At that time, banks had to increase interest rates to lure deposits and ensure liquidity.
However, after Tet, when cash flows into banks again, the banks’ liquidity is under less pressure. Therefore, banks also do not need to raise deposits with high-interest rates.
According to finance expert Đinh Thế Hiển, cash will continue to flow into banks as savings remain high compared to previous years. Deposit interest rates in the first quarter of 2023 will be commonly at 6.5-7 percent per year at large-sized and good-quality banks and 8-9 percent at small-sized banks; expecting that by the end of the second quarter of 2023, the interest rate will return to the average level at around 7 percent per year.
(Viet Nam News)
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