According to the State Bank of Vietnam (SBV), deposits from people and businesses at banks have witnessed positive growth. The deposits from the public grew faster than those from businesses.

As of the end of May, the total outstanding deposits from the public were VND5.6 quadrillion, an increase of 5.07 percent compared with late 2021, or VND268.5 trillion.

If compared with late April,  deposits from the public in May soared by VND40 trillion. Compared with the same period last year, the figure would be nearly double.

The deposits from businesses at banks increased again in May after a slight decrease in April. As of the end of May, the figure had reached VND5.806 quadrillion.  If compared with late 2021, the growth rate would be 2.86 percent, which means an increase of VND150 trillion.

Experts said that deposits at banks have been increasing rapidly because deposit interest rates have risen after two years of staying at a low level. 

Many banks have raised deposit interest rates by 0.3-0.6 percentage points to over 7 percent per annum, which is attractive in the eyes of depositors. 

Meanwhile, other investment channels such as securities, real estate, gold and foreign currencies are unstable. 

Analysts believe that deposit interest rates will continue to rise amid increased demand for capital.

SSI Research predicts that interest rates may increase by another 0.5-0.7 percentage point after SBV lifts credit growth rate limits. If so, the total interest rate increase this year would be 1-2 percentage points.

A survey of more than 30 commercial banks on July 25 found that the deposit interest rates offered by banks were between 3 percent and 7.7 percent.

CBBank is the bank that offers the highest interest rate – 7.7 percent for 13-36-month deposits. The other banks include KienlongBank (7.3 percent), SCB (7.3 percent), Bao Viet Bank (7.1 percent), DongA Bank (7 percent), NCB (7 percent) and VRB (7 percent).

Meanwhile, state-owned banks, or the Big Four (Vietcombank, VietinBank, BIDV and Agribank) and joint stock banks offer lower interest rates, just 5.5-5.6 percent.

In general, banks offer interest rates 0.1-0.2 percentage points higher for online deposits. 

A one month deposit has an interest rate of 3-4 percent, (GP Bank, NCB, PGBank, SCB and VIB offer the highest interest rates) 3-month at 3.4-4 percent (ABBank, GPBank, NCB, PGBank, SCB and VIB), 6-month at 4-7.3 percent (CBBank), 9-month at 4-7.4 percent (CBBank) and 12-month at 5.57-7.65 percent (CBBank).

Ngoc Cuong