On November 14, VietABank announced a 0.6 percentage point increase in deposit interest rates for certain tenures. As a result, the bank’s online savings rates have increased to 3.7% p.a. for 1-month terms, 3.9% p.a. for 2-month terms, and 5.4% p.a. for 9-month terms.
The highest interest rate at VietABank is 6% p.a. for online savings accounts with a 36-month term. For over-the-counter deposits, the highest rate is 5.6% p.a. for tenures ranging from 24 to 36 months.
According to a survey conducted by NLD journalists as of November 14, several banks are offering interest rates above 6% p.a. for long-term deposits made at their counters, including Saigonbank at 6% p.a., Oceanbank at 6.1% p.a., DongABank at 6.02% p.a., and BacABank at 6.15% p.a.
Among state-owned commercial banks, VietinBank and Agribank offer the highest interest rates of 4.8% p.a. for 24-month fixed deposits, while Vietcombank and BIDV offer slightly lower rates of 4.7% p.a. for the same tenure.
Deposit interest rates continue to rise, with several banks offering over 6% p.a. for long-term deposits.
The slight increase in deposit interest rates is expected to encourage idle funds to flow into the banking system.
On the same day, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City Branch, stated that in recent months, deposit mobilization has been on a positive growth trajectory, with an average growth rate of over 1.5%.
As of the end of October 2024, in Ho Chi Minh City, deposits from economic organizations and individuals (including fixed and non-term deposits) had increased by 8.3% compared to the end of 2023, with personal savings deposits currently exceeding VND 1.4 quadrillion, accounting for approximately 36.8%-38% of total deposits.
“Capital mobilization growth is of utmost importance as it enables banks to expand lending for production and business activities, thereby boosting economic growth,” said Mr. Nguyen Duc Lenh. “By effectively utilizing the temporarily idle capital of enterprises and personal savings deposits in production and business operations, we can contribute to stimulating economic growth.”
According to recently released data from the State Bank of Vietnam, as of the end of August 2024, personal savings deposits in the banking system amounted to nearly VND 7 quadrillion, a 6% increase compared to the end of last year. Deposits from economic organizations in the banking system totaled over VND 6.83 quadrillion as of the end of August, a slight decrease from the previous year.
Consequently, the total capital mobilization from individuals and credit institutions in the banking system exceeded VND 13.75 quadrillion.
The Rising Exchange Rate: A Boon for Banks
The volatile exchange rates in the first half of the year have resulted in a windfall for many banks’ foreign exchange business.
How Much Money Are Ho Chi Minh City Residents Stashing Away in Savings?
Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City Branch, recently announced the outstanding balance of resident savings deposits at credit institutions in the city as of the end of October 2024.
“ACB Bank’s Latest Interest Rates for November 2024: Top Rates for 12-Month Online Deposits, with an Average Lending Rate of 6.67% for New Loans.”
As per the announcement by ACB, the highest interest rate for individual online deposits is offered for terms of 12 months and above. The average lending rate for new loans at ACB is 6.87% per annum.
The New Deposit Record: People Are Now Banking Almost VND 2,900 Billion Every Day
As of the end of August, the total amount of savings deposits held by Vietnamese citizens in banks stood at an impressive 6.92 million billion Vietnamese Dong. This figure highlights a significant trend; on average, during August, citizens deposited nearly VND 2,900 billion in banks every single day.
The Cash Flows Strongly into the Banks
According to the latest data released by the State Bank of Vietnam, resident deposits reached over VND 6,920 trillion by the end of August 2024, a 6% increase compared to the end of 2023. This significant growth showcases the thriving economy and the confidence of residents in the country’s financial system.
