Hanoi (VNS/VNA) - Large banks are starting tojoin the deposit interest rate hike race along with small- andmedium-sized banks due to rising capital demand pressure after a long timestaying out of the game.

Early this month, Agribank adjusted interest rates for long-term deposits.

Accordingly, customers who deposit money at the bank for 12 months to 24months will enjoy a rate of 5.6% per year, up 0.1 percentage points from lastmonth.

Similarly, BIDV this month also announced a new interest ratechange with an increase of 0.1 percentage point to 5.6% per year for depositsfrom 12 months to 36 months.

At Vietcombank, the online deposit interest rate also added 0.1 percentage pointsper year compared to over-the-counter deposits.

Many small- and medium-sized banks earlier this year increased their ratesby 0.3-0.6 percentage points.

Before the pandemic, the highest interest rate for 12-month savings was 7% peryear. Now, many banks are keeping it at 6.7-6.9%, whereas some have lifted itto more than 7%. As for the interest rate for short-term deposits of less thansix months, banks are applying the ceiling rate of 4% for all terms.

SCB is currently applying the highest rates in the banking system on bothover-the-counter and online channels. In particular, the 12-month savings rateat the bank’s over-the-counter channel is currently 7.3%. Meanwhile, ifdepositing online, depositors at SCB are given an additional 0.15-0.3percentage points, raising the maximum interest rate to 7.55% per year.

Kienlongbank offers a rate of 7.2% on a 24-month term, and 7% per year onan 18-month term, 6.95% per year on a 15-month term, and 6.5% per year on a12-month term.

NamABank is listing its over-the-counter savings rates at 6.5% per annum on a12-month term and 6.7% per annum on terms from 18 to 23 months, but it isoffering an additional interest rate of 0.7 percentage points if customersdeposit online.

Accordingly, via the online savings channel, customers enjoy rates of 7.2%per annum on a 12-month term and 7.4% per annum on terms of above 16 months.

This is the highest interest rate level that NamABank applies to deposits ofindividual customers, and the second-highest interest rate in the market, afterSCB.

Similarly, the savings interest rates over the counter of PVcomBank are just6.3% per annum on a 12-month term and 6.65% per annum on terms of 15 months ormore, but via online channels, the bank is willing to pay rates of 6.7% perannum on a 12-month term and 7.25% per annum on terms from 18 months or more.

VietABank currently lists its online savings rates at 6.95% per annum on12-month terms and 7.2% per annum on 15 months or more. Meanwhile, forover-the-counter deposits, the rates are 6.6% per annum and 6.9% per annum.

Many other banks, such as BaoVietBank, VietCapitalBank, CBBank, VietBank andLienVietPostBank, are also listing the rate at 7% per year.

Banking expert Nguyen Tri Hieu told VietnamNews that to attract idle money, many banks have increaseddeposit interest rates significantly over the last year, adding that savingsinterest rates were on the rise and likely to go up further in the comingmonths.

“Savings interest rates in the remaining months of the year will rise due to ahigher capital demand and inflationary pressure as well as a fiercer competitionfrom other investment channels such as real estate and securities to attractidle capital flows,” he said.

Saigon Securities Incorporation’s research division forecast deposit interestrate might be adjusted by a further 1-2% this year./.