Borrowing Just Got Pricier: Interest Rates Soar as Credit Demand Heats Up
Bank Interest Rates Today, September 11, 2024
Bac A Bank increased its deposit interest rate from 0.1-0.15%/year. According to the State Bank of Vietnam (SBV), the amount of treasury bills in circulation decreased to 0, interbank interest rates increased again.
After decreasing by 0.1-0.5%/year for terms from 1-36 months last month, interest rates at Bac A Commercial Joint Stock Bank (Bac A Bank) increased again from today. Bac A Bank increased by 0.15%/year for terms from 1-11 months, and 0.1%/year for terms from 12-36 months.
For deposits under 1 billion VND, the interest rate for 1-2 month terms is 3.65%/year, 4 months is 4.05%/year, 5 months is 4.15%/year.
The interest rate for 6-8 month term savings is 5.15%/year, 9-11 month term is 5.25%/year. The interest rate for 12 month term is 5.7%/year, 13-15 month term is 5.75%/year.
The highest interest rate at Bac A Bank for deposits under 1 billion VND is 5.85%/year, applied for terms of 18-36 months.
Bac A Bank regulates deposit interest rates according to two different deposit levels. Interest rates for deposits of 1 billion VND or more are 0.2% higher per year than those of deposits under 1 billion VND.
Deposit interest rates at the remaining banks remained unchanged this morning. Since the beginning of September, 6 banks have increased deposit interest rates, including: Dong A Bank, OceanBank, VietBank, GPBank, Agribank, and Bac A Bank.
On the contrary, ABBank is the first bank to reduce deposit interest rates by 0.10-0.4%/year for terms of 1-12 months.
According to the State Bank’s report on the money market in the first week of September (from September 4-6), the State Bank continued to conduct net injections in the open market, with a total net injection volume of VND 45,665 billion.
Through forward purchase, the State Bank of Vietnam bought VND23,665.13 billion (7-day term, 4.25% interest rate) while VND22,000 billion of previously issued treasury bills had matured.
Thus, after the State Bank continuously issued treasury bills to attract liquidity since June 2024, the current amount of treasury bills in circulation has decreased to 0.
Overnight, 1-week and 2-week interbank interest rates increased by 0.57%; 0.33%; 0.02% to 4.59%; 4.77%; 4.5%, respectively.
Banks’ increased capital demand has caused interbank interest rates to rise again from low levels. Specifically, recent information from the State Bank of Vietnam said that credit growth as of September 7 reached 7.15%, up 0.52% compared to August 26 at 6.63%.
This is a relatively good increase, at the same time in 2023, credit growth only reached 5.33%.
Highest Deposits Interest Rates at Banks on September 11, 2024 (%/Year)
| Bank | 1 Month | 3 Months | 6 Months | 9 Months | 12 Months | 18 Months |
|---|---|---|---|---|---|---|
| AGRIBANK | 2.2 | 3.3 | 3.3 | 4.7 | 4.7 | 4.7 |
| BIDV | 2.2 | 3.3 | 3.3 | 4.7 | 4.7 | 4.7 |
| VIETINBANK | 2.2 | 3.3 | 3.3 | 4.7 | 4.7 | 4.7 |
| VIETCOMBANK | 1.6 | 1.9 | 2.9 | 2.9 | 4.6 | 4.6 |
| ABBANK | 3.2 | 3.7 | 5.2 | 5.6 | 5.7 | 5.7 |
| ACB | 3.3 | 4.1 | 5.1 | 4.2 | 4.8 | 4.8 |
| BAC A BANK | 3.65 | 3.9 | 5.1 | 5.2 | 5.7 | 5.8 |
| BAOVIETBANK | 3.3 | 4.5 | 5.2 | 5.8 | 5.8 | 6 |
| BVBANK | 3.7 | 3.8 | 5.1 | 5.5 | 5.8 | 6 |
| CBBANK | 3.8 | 5.5 | 5.5 | 5.7 | 5.8 | 5.8 |
| DONG A BANK | 3.8 | 5.2 | 5.5 | 5.8 | 6 | 6 |
| EXIMBANK | 3.8 | 4.3 | 5.2 | 4.5 | 5.2 | 5.2 |
| GPBANK | 3.2 | 3.7 | 5.0 | 5.4 | 5.7 | 5.8 |
| HDBANK | 3.8 | 3.9 | 5.1 | 4.7 | 5.5 | 6.1 |
| KIENLONGBANK | 3.7 | 3.7 | 5.2 | 5.3 | 5.6 | 5.7 |
| LPBANK | 3.4 | 3.5 | 4.7 | 4.8 | 5.1 | 5.6 |
| MBMB | 3.7 | 4.4 | 4.4 | 5.1 | 4.4 | 4.4 |
| MSB | 3.7 | 3.7 | 4.6 | 4.6 | 5.4 | 5.4 |
| NAM A BANK | 3.5 | 4.1 | 5.2 | 5.6 | 5.7 | 5.7 |
| NCB | 3.7 | 5.3 | 5.5 | 5.5 | 5.7 | 6.1 |
| OCB | 3.7 | 3.9 | 4.9 | 5.2 | 5.2 | 4.4 |
| OCEANBANK | 3.8 | 4.2 | 5.1 | 5.6 | 6 | 6.1 |
| PGBANK | 3.2 | 3.7 | 5.5 | 5.5 | 5.8 | 5.8 |
| PVCOMBANK | 3.3 | 3.6 | 4.5 | 4.7 | 5.1 | 5.5 |
| SACOMBANK | 3.3 | 3.6 | 4.9 | 4.9 | 5.4 | 5.4 |
| SAIGONBANK | 3.3 | 3.6 | 4.8 | 4.9 | 5.8 | 6 |
| SCB | 1.6 | 1.9 | 2.9 | 2.9 | 3.7 | 3.9 |
| SEABANK | 2.9 | 3.4 | 3.7 | 3.9 | 4.5 | 4.5 |
| SHB | 3.5 | 3.8 | 5.1 | 5.1 | 5.8 | 5.8 |
| TECHCOMBANK | 3.2 | 3.4 | 4.5 | 4.5 | 5.4 | 4.9 |
| TPBANK | 3.5 | 3.8 | 4.7 | 5.2 | 5.2 | 4.4 |
| VIB | 3.2 | 3.6 | 4.6 | 4.6 | 5.1 | 6.1 |
| VIET A BANK | 3.4 | 3.7 | 4.8 | 4.8 | 5.4 | 5.4 |
| VIETBANK | 3.8 | 4.2 | 5.2 | 5.6 | 5.9 | 5.9 |
| VPBANK | 3.6 | 3.8 | 5.5 | 5.5 | 5.5 | 5.5 |