On December 9, according to Nguoi Lao Dong reporters, the latest interest rates at four state-owned commercial banks, including Vietcombank, VietinBank, BIDV, and Agribank, for long-term deposits of 12 months or more, were all below 5% per annum.
Specifically, VietinBank, Agribank, and BIDV are offering an interest rate of 4.7% per annum on 12-month term deposits, while Vietcombank offers a slightly lower rate of 4.6% per annum.
For longer-term deposits of 24 months and above, VietinBank and Agribank are offering an interest rate of 4.8% per annum, while Vietcombank and BIDV offer a rate of 4.7% per annum.
These interest rates are significantly lower than those offered by large-scale joint-stock commercial banks, which range from 5% to 5.5% per annum.
Meanwhile, smaller joint-stock commercial banks offer rates ranging from 5.5% to 6% per annum, with some banks even advertising rates above 6% per annum for high-value deposits of VND 500 billion and above.
Today’s interest rates, though slightly higher for savings deposits at many banks, remain relatively low compared to previous years.
As of September 2024, statistics from Maybank Securities showed that the 12-month term deposit interest rate had increased by an average of 0.6 percentage points from its low in March 2024, mainly driven by joint-stock banks.
Meanwhile, state-owned banks (Vietcombank, BIDV, and VietinBank) have been trying to control the increase in deposit interest rates to comply with government directives.
Maybank experts expect deposit interest rates to rise by an additional average of 0.5 percentage points in the next nine months, as credit growth remains reasonable and does not significantly affect banks and the economy in terms of funding costs.
Economist Dr. Dinh The Hien also shared that, despite the slight increase in deposit interest rates, the market does not show a trend of attracting money by engaging in a high-interest-rate race as seen in the previous year. Currently, an interest rate of 5% per annum for VND deposits is reasonable. Stable deposit interest rates will contribute to the stability of the capital market.
“Saving deposits are not an investment channel to expect high profits with low risk, i.e., earning profits passively. Deposit interest rates in developed countries are very low, only slightly higher than the inflation rate. In Vietnam, the 12-month saving deposit interest rate at the four state-owned commercial banks is below 5% per annum. This is a very reasonable rate, about 1% higher than the inflation rate,” said Dr. Hien.
Why Low Deposit Interest Rates Are Beneficial for the Economy
According to Dr. Hien, people are accustomed to depositing money in banks to ensure safety and earn high-interest rates, but this practice increases the cost of capital for the banking industry. This, in turn, leads to higher lending rates for businesses and consumers.
“2024 can be considered a period of stable interest rates, not a place to seek profits, which helps bring down the cost of capital through the supply of bank credit to a reasonable level. This supports the sustainable recovery and development of the economy,” added Dr. Dinh The Hien.
The Latest HDBank Interest Rates for December 2024: Increased for 6 and 12-Month Terms, with the Highest Rate Offered on 18-Month Term Deposits
“In early December, HDBank offered an attractive interest rate range of 0.5% – 8.1% p.a. for personal depositors. The maximum interest rate for regular savings accounts stood at an impressive 6.1% per annum, outshining many other financial institutions in the market.”
The Central Bank’s New Directive to Commercial Banks: Stabilize Deposit Rates, Lower Lending Rates
The State Bank (SBV) has requested that credit institutions maintain a stable and reasonable deposit interest rate, one that aligns with their capital balancing capabilities, healthy credit expansion, and risk management competencies. This move aims to contribute to the stability of the monetary market and interest rate environment.
The Power of Compounding Interest: Should You Consider a Fixed Deposit for Year-End Savings?
It is predicted that deposit interest rates will continue to rise from now until the end of the year to meet the surging demand for credit capital.
Will Interest Rates Drop Further by Year-End?
The continuous rise in deposit interest rates in recent times has sparked a question: Can lending rates drop further by the year-end?
The Power of Compounding: Maximizing Returns, Nurturing Business Growth
“Despite a slight uptick in deposit rates, banks are unlikely to raise lending rates as they strive to boost credit growth towards the year-end. The industry’s focus on maintaining accessible borrowing rates underscores their commitment to supporting economic expansion and recovery.”
