Savings interest rates have increased but still remain at a low level.
Saving interest rates have been rising steadily since early April and show no signs of stopping. Currently, deposit rates at some banks have exceeded 6% per year for terms of 12 months or more. For 6-12 month terms, rates range from 4-5% per year; under 6 months from 2-4% per year.
The savings interest rate has increased again, helping the amount of money deposited in banks stay high. The State Bank of Vietnam reported that deposits in banks are now over 15 million trillion VND. Earlier, data from State Bank showed that in January, household deposits in the banking system (the money that individuals and families (households) deposit into the banking system) decreased, but this situation has improved as interest rates for deposits have risen.
In February, household deposits in the banking system grew by 1.6%, and by May, this growth increased to 2.8%.
Recently, the State Bank reported that by June, deposits from people and businesses reached about 13,575 million trillion VND, which is a 1.5% increase compared to the end of 2023.
The Financial Reports for the Second Quarter and the first six months of this year from banks also show that deposits from people continue to rise. In absolute terms, four State-owned banks are still leading in attracting savings deposits.
Agribank had over 1.83 million trillion VND in customer deposits by the end of June, an increase of about 17 trillion VND, which is a 0.9% rise compared to the end of 2023. At the beginning of August, Agribank raised interest rates for many terms.
Currently, the inerest rate for a 12-month deposit at Agribank is 4.7% per year, and for a 24-month deposit, it is 4.8% per year.
BIDV has total deposits of nearly 1.81 million VND, an increase of 102.3 trillion VND, which is a 6% rise compared to the end of 2023. At VietinBank, the deposit balance reached nearly 1.47 million trillion VND by the end of June, a 4% increase, which is 56 trillion VND more than at the end of 2023. Only Vietcombank saw a decrease in total deposits of 1.5% compared to the end of 2023, reaching 1.37 million trillion VND.
In the private joint-stock commercial banks, MB recorded the highest deposits with a balance of over 618,617 trillion VND, a 9% increase from last year. The next positions belong to Sacombank, ACB, Techcombank, and others.
Notably, deposits at LPBank increased by 21.4% in the first half of the year, which is an increase of 50.7 trillion VND compared to the end of 2023. Total deposits at MSB increased by nearly 14,7 %, attracting an additional 19.4 trillion VND; OCB saw a deposit growth of 12.4%, increasing by 15.6 trillion VND.
Economist Le Xuan Nghia said that the reasons for the increase in interest rates come from three factors:
inflation, exchange rates, and gold prices. However, in reality, the recent increase in deposit interest rates has been moderate, making it feel less harmful for savers and not suggesting a change in monetary policy. Keeping interest rates stable at a low level to support economic recovery is very important right now. Therefore, loan interest rates are expected to remain low, even as savings rates may adjust slightly upward in the near future.
According to experts, the low growth of deposits from people and businesses in the early months of the year, along with the recovery of credit growth (which reached 6% by the end of June), has led many banks to raise deposit interest rates to ensure a balance of funds. Additionally, the State Bank's interventions through tools like treasury bills and foreign currency sales have reduced pressure on exchange rates, affecting the liquidity of banks and pushing interest rates up.
Credit: cafef.vn
0 Comments