Bank revealed the strongest deposit interest rate increase since the beginning of the year, plus up to 1.5%/year

ABBank recently announced a program to offer additional interest rates to customers who deposit savings at the counter. Accordingly, from now until June 30, 2022 (or until the program limit expires, whichever comes first), all customers who participate will deposit new savings books at the counter with terms from 1-12. Monthly bonus interest rate up to 1.5%/year. This is the strongest increase in the whole industry since the beginning of the year so far.

Currently, the interest rate for 6-12 month term at ABBank’s counter is 5.7%/year. Thus, after being added, the interest rate that customers enjoy is up to 7.2%/year, among the top banks with the highest interest rates in the market.

Before ABBank, another bank that also sharply increased interest rates by nearly 1% per year was VIB. Specifically, in terms of 9 months and 11 months when deposited at the counter, this bank’s interest rate increased from 5.1%/year to 6%/year. In addition, many other terms of VIB are also added 0.4-0.7%/year.

Almost every private bank has increased deposit interest rates in the past 3 months, a common increase of about 0.3-0.5% a year. Even state-owned banks have moved to increase, BIDV recently increased deposit interest rates by 0.1%/year for terms of 12 months or more.

The deposit space has increased significantly, there are about a dozen banks with interest rates above 7%/year. In which the highest is 7.55%/year at SCB.

The continuous increase in deposit interest rates helped individual customers’ deposits into the banking system to grow significantly in the first half of the year. The customer’s deposit balance at the end of March 2022 at the credit institution system reached more than 11.33 million billion VND, an increase of more than 390,000 billion VND compared to the end of 2021, equivalent to an increase of 3.6%. In which, deposits from residents reached more than 5.47 million billion VND, an increase of nearly 174,000 billion VND in the first 3 months, equivalent to an increase of 3.28%. This increase is larger than the growth achieved in 2021 (just over VND 158,000 billion).

According to VNDirect securities, deposit interest rates will remain under increasing pressure from now until the end of the year because inflationary pressure may increase in the coming quarters. However, the expert group believes that the increase will not be too large, only about 30-50 basis points for the whole year of 2022. Accordingly, the 12-month deposit interest rate of commercial banks may increase to 5 .9-6.1%/year at the end of 2022 (currently at 5.5-5.7%/year), still lower than the pre-pandemic level of 7.0%/year. 20220603145913961.chn

According to Thu Thuy

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