The Big Five Private Banks Join the June Deposit Rate Race as SHB Hikes Savings Rates

Joint Stock Commercial Bank for Foreign Trade of Vietnam (SHB) has just announced the
application of a new deposit interest rate schedule from June 26th, with an
increase of 0.2%/year for all terms from 1 month onwards. Accordingly, the highest
savings interest rate at SHB has reached 6.1%/year.

According to the Online Deposit Interest Rate Schedule – the product with the
highest interest rate at SHB, the interest rate for the term of 1-2 months has
increased to 3.3%/year, the term of 3-5 months is currently at 3.4%/year, the term
of 6-8 months is 4.7%/year, the term of 9-11 months is 4.8%/year, the term of 12
months has increased to 5.2%/year, the term of 13-15 months is 5.3%/year, the term of
18 months is 5.5%/year, the term of 24 months is 5.8%/year, and the term of 36 months
and above currently has the highest interest rate, up to 6.1%/year.

For counter deposits, SHB also increased by 0.2%/year for all terms from 1 month
onwards. Accordingly, the highest deposit interest rate for customers depositing
at the counter is 5.9%/year, applied to deposits from 36 months onwards with a
minimum deposit amount of VND 2 billion.

This is the first time SHB has increased deposit interest rates this month and is
the fourth bank to offer an interest rate of up to 6.1%/year (along with NCB,
OceanBank, and HDBank).

In addition, SHB is also the next large private bank to raise interest rates in
June. Previously, ACB, VPBank, MB, and Techcombank also raised interest rates in
recent weeks.

Most recently, ACB has simultaneously increased deposit interest rates by 0.2 –
0.4%/year for terms of 1 – 12 months since June 21st.

Techcombank also adjusted savings interest rates last week with an average
increase of 0.1-0.3%/year, bringing the highest savings interest rate to 5%/year.

From June 14th, VPBank simultaneously increased deposit interest rates for all
terms with an increase of 0.2 – 0.3%/year. Meanwhile, MB increased interest rates
for terms of 1 – 18 months by 0.1 – 0.4%/year from June 7th.

The trend of increasing deposit interest rates has appeared since the end of March
and has become widespread in April, May, and continued into June. However, the
increase has mainly come from the group of joint-stock private banks.

Since the beginning of June, the market has recorded 23 commercial banks
increasing deposit interest rates, including: TPBank, VIB, GPBank, BaoViet Bank,
LPBank, Nam A Bank, OceanBank, ABBank, Bac A Bank, MSB, MB, Eximbank, OCB,
BVBank, NCB, VietBank, VietA Bank, VPBank, PGBank, Techcombank, ACB, SHB, and
VietinBank. Many of these banks have increased interest rates 2 – 3 times in June.