A Bank Increases Savings Interest Rates Across Most Tenures Starting Today (11/9)

Bac A Bank has announced a new interest rate for deposits, effective today (September 11th). The bank has increased rates for most fixed-term deposits.

Specifically, Bac A Bank has raised rates by 0.15% for 1-11 month terms and by 0.1% for 12-36 month terms.

For deposits below VND 1 billion with interest payable at maturity, the rates for 1-2 month terms are 3.65% p.a., 4.05% p.a. for 4 months, and 4.15% p.a. for 5 months.

The interest rate for 6-8 month terms is 5.15% p.a., while 9-11 month terms earn 5.25% p.a. The 12-month term offers an interest rate of 5.7% p.a., and the 13-15 month term is at 5.75% p.a.

Currently, the highest interest rate offered by Bac A Bank is 5.85% p.a. for 18-36 month terms for deposits below VND 1 billion.

Bac A Bank has also made similar adjustments for deposits of VND 1 billion and above, maintaining a rate that is 0.2% higher than for deposits below VND 1 billion.

At present, the highest interest rate at Bac A Bank is 6.05% p.a. for 18-36 month terms with deposits of VND 1 billion and above, with interest payable at maturity.

Prior to this, Bac A Bank had reduced its interest rates in mid-August, with adjustments ranging from 0.05% to 0.2% across all terms.

Since the beginning of September, six banks have increased their deposit interest rates, including Dong A Bank, OceanBank, VietBank, GPBank, Agribank, and now Bac A Bank.

On the other hand, ABBank was the first bank to reduce deposit rates, with a decrease of 0.10% to 0.4% for terms ranging from 1 to 12 months.

In recent weeks, the momentum of increasing deposit rates has shown signs of slowing down, both in the number of banks making adjustments and the frequency of changes. However, deposit rates are still expected to face upward pressure in the last months of 2024.

In a recent analysis report, MBS Securities stated that in the context of credit growth accelerating three times faster than deposit mobilization, banks are aggressively raising deposit rates to enhance the competitiveness of savings compared to other investment channels in the market.

The analytics team predicts that input interest rates will continue to rise in the second half of 2024 due to increasing credit demand. They anticipate that credit demand will further intensify from the middle of 2024 onwards as production and investment accelerate in the final months of the year.

Dragon Capital Securities also shared a similar viewpoint, stating that the State Bank’s recent adjustment of credit growth targets for banks will enable them to be more competitive in meeting capital demands. However, it may also lead to continued increases in deposit rates in the coming months.