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LienViet Post Bank (LPBank) has just announced new deposit interest rates effective from June 3rd. The bank has significantly increased interest rates for terms of 1-12 months.
Specifically, for online deposits via Lienviet24h – the product with the highest interest rate, LPBank simultaneously increased interest rates by 0.1-0.6 percentage points for many terms.
For short-term deposits of less than 1 month, the interest rate remains unchanged at 0.2%/year; the 1-month term is adjusted from 2.6%/year to 3.2%/year; 2-3 month terms increased from 2.7%/year to 3.3%/year; 4-month term increased from 2.8%/year to 3.3%/year, 5-month term increased from 2.9%/year to 3.4%/year; 6-8 month terms increased from 4%/year to 4.4%/year; 9-month term increased from 4.1%/year to 4.5%/year; 10-month term increased from 4.2%/year to 4.5%/year; 11-month term increased from 4.3%/year to 4.6%/year; and the 12-month term increased from 5%/year to 5.1%/year.
LPBank maintains the interest rate for terms of 13-60 months in the range of 5.3-5.6%/year. The highest interest rate of 5.6%/year is applied to terms of 18-60 months.
In addition to online deposits, LPBank also offers increased interest rates for customers depositing at the counter, with an adjustment of 0.2%/year for terms of 1-5 months.
LPBank is one of the first banks to raise deposit interest rates in June, along with TPBank. Previously, about 20 banks had increased interest rates in May, with some banks adjusting rates two to three times.
The trend of increasing deposit interest rates emerged at the end of March and became widespread in April and May. However, the increase has mainly come from joint-stock private banks, while the group of four state-owned banks, including Vietcombank, BIDV, VietinBank, and Agribank, still maintain low-interest rates.
According to analysts, the low growth of deposits from individuals and enterprises in the first months of the year, along with the recovery of credit growth, has led many banks to raise deposit interest rates to ensure a balance of capital sources.
Deposit interest rates are expected to face upward pressure in the second half of the year, but analysts believe the increase will not be significant as credit demand during this period is not expected to surge. Moreover, the fact that state-owned banks – which account for nearly half of the total deposits in the system – are still maintaining historically low-interest rates indicates that deposit interest rates are unlikely to rise sharply in the coming period.
Rong Viet Securities (VDSC) predicts that the deposit interest rate level may recover to the level of the beginning of this year in the coming months, equivalent to an average increase of 0.5-1%/year from the bottom, depending on the term and bank group. The next movement of interest rates will depend on the ability to control the devaluation of the Vietnamese dong and the monetary policy of the Fed.
