Six lenders, VPBank, SHB, Eximbank, HDBank, MSB, and Kienlongbank, have hiked the rates.

VPBank’s rates are now 0.1-0.5 percentage points higher across the board while the others only raised them by 0.2 percentage points for selected terms.

Meanwhile, 10 banks have cut rates for most terms, with two state-owned banks cutting them by 0.1-0.2 percentage points and eight private lenders by up to 0.5 percentage points.

Currently the highest rate for 12 months is 5.3% at NamABank and VietBank.

Deposit inflows have been slowing down.

By the end of March, total deposits have fallen by 0.76% from the beginning of the year, according to data from the General Statistics Office.

Nevertheless, banks’ liquidity remain high.

Lending grew by 1% to VND13.79 quadrillion (US$552.4 billion) in the first quarter, with many banks reporting a 3-5% increase in loans outstanding.

Bankers expect credit to grow at a faster pace in the second half of the year.

Until then deposit interest rates would remain low, they said.

Banks slash deposit interest rates

Over 20 banks have cut deposit interest rates in the last month, with the highest for 12-month deposits now being 5.3%.

Major banks continue cutting deposit interest rates

Deposit interest rates at four major banks of Vietnam were adjusted sharply, down by 0.4% per year from the previous listings, bringing the rate to 1.8% per year at the lowest.

Deposit interest rates fall to 6%

Around 20 banks have lowered their deposit interest rates to 6% a year as they have abundant cash resources amid difficulties in providing loans.

Bank deposits grow despite lower interest rates

Individual bank deposits grew 9.7% in the first 8 months of this year despite decreased interest rates, as the unattractive stock and real estate markets left few investment options.

Source: VnExpress