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Depositors flock to enjoy higher interest rates
Banks on May 19 rushed to lift deposit interest rates to around 14 percent per year in an attempt to attract more clients.
At the same time, depositors kept banks tellers busy as they took advantage of the offer.
Two sound joint stock banks listed on the local stock market had already moved up their deposit rates.
Sai Gon Thuong Tin Commercial Bank (Sacombank) gave an interest rate of 14 percent yearly for terms of more than six months and 13.5-13.8 percent for those less than six months.
Asia Commercial Bank (ACB) lured in clients by offering 13.68 percent for 13 month terms, 13.56 percent for 12 month terms and 13.44 percent for nine month deposits.
Many other banks have also raised interest rates for all deposit terms, but seem to have focused on short and mid term deposits.
Hanoi Building Commercial Bank (Habubank) introduced rates of 15 percent per annum for 1-24 month deposit terms and 12-14.4 percent for one to three weeks.
Vietnam Commercial Bank for Private Enterprises (VP Bank) has given 15 percent for over six month terms.
Export and Import Bank (Eximbank) offered 14.196 percent rates for 7-13 month terms and 14.004 percent for those from one to six month terms.
DongA Bank offered 13.8 percent per annum for 1-6 month terms and 14 percent per year for 7-12 month terms.
Saigon Commercial Bank (SCB) presented an annual interest rate of 13.8 percent for deposits of over nine months.
Bank assumed that over the next few days all banks would present new rates, in which minimum deposit rates would be about 13 percent per year, maxing out at around 15 percent. However, Nguyen Thanh Toai, deputy general director of ACB Bank, told Vietnam News, “I think the deposit rates won’t exceed 15 percent.”
Costs to mobilise capital [including money for compulsory reserves, compulsory notes, liquidity and other costs] were often 2-2.5 percent of the deposit rates, he explained.
The busy trading at commercial banks on May 19 was the result of the interest rates lifting from the central bank on May 17.
From these lifted rates, deposit rates were moved up to 18 percent per year instead of the 12 percent ceiling cap. The new rates came into effect on May 19.
VNA
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