Interest rates continue to increase, which bank is the most profitable?

Ngoc Hanh (living in District 3, Ho Chi Minh City) said that she decided to save money in a bank for an idle amount of 600 million dong, instead of putting money into “bottom-fishing” securities after the recent heavy loss.

“Seeing that the deposit interest rates of many banks have increased significantly, online savings for a 6-month term can be over 6%/year, so I decided to deposit them in a bank,” said Ms. Hanh.

As noted, deposit interest rates have increased significantly recently in some joint stock commercial banks, especially for long terms.

The April 2022 macroeconomic update report of Vietcombank Securities Company (VCBS) also shows that, from the beginning of the year until now, deposit interest rates have increased at some joint stock banks from 0.1 – 0.3 percentage points. Particularly, the group of state-owned commercial banks continued to be stable.

Deposit interest rates continue to move up in some banks

With inflation pressure expected to persist in the coming months along with higher credit growth demand during the economic recovery period, deposit interest rates are forecasted to continue to increase.

“Deposit rates may be under pressure to increase by 1 – 1.5 percentage points in the whole year of 2022. VCBS forecasts lending rates will see upward pressure but there will be a delay compared to the time when deposit rates increase. There will be a divergence between the rate of increase and the time of increase among industries,” said an analyst of this securities company.

Similarly, statistics of Bao Viet Securities Company (BVSC) show that by the end of April 2022, the deposit interest rate for 12-month term continued to increase by 0.08 percentage points, to 5.66%. /five. This movement has caused deposit interest rates to increase over the same period, after more than 2 years of continuous decline.

Meanwhile, a strong increase in credit, which increased the demand for input capital, also contributed to prompting banks to increase deposit interest rates to attract idle cash flow from residents and organizations. According to BVSC, with pressures from inflation and high credit demand during the economic recovery, interest rates may continue to increase slightly in the near future. However, the increase in interest rates will not be too large this year to support the recovery of the economy.

A remarkable development in the market is that in the upward trend of interest rates, the market has recorded new high interest rates. As at Saigon Commercial Joint Stock Bank (SCB), in the latest deposit interest rate table applied from mid-May 2022, the bank has adjusted to increase both over-the-counter and online deposit rates.

Particularly for online savings, the highest interest rate at SCB is up to 7.55%/year for customers with a term of 18-36 months, no deposit limit. Customers depositing a 6-month term online, the interest rate is also up to 6.85%/year, which is quite high in the market.

Currently, some banks have the highest interest rates above 7%/year, even from 7.2-7.4%/year such as VietCapitalBank, VietBank, Nam A Bank, VietABank… mainly applied to savings accounts. Online savings for terms of more than 12 months.