“New hot variable”, the highest savings interest rate may be below 9%/year from next week
Referring to the deposit interest rate at the Conference on credit work for the real estate sector, Mr. Nguyen Thanh Tung – General Director of Vietcombank said that in the past time, commercial banks have owned home capital. The country never raises the deposit interest rate “framework”, even in the coming time, big banks will continue to reduce the deposit interest rate further.
“The general directors of commercial banks have agreed that they will thoroughly implement the direction of the State Bank, agree to further reduce deposit interest rates to gradually reduce lending rates, support businesses and the market.” school”, Mr. Tung informed.
This is not the first time banks “shake hands” to reduce savings interest rates. Previously, in December 2022, following the Prime Minister’s direction on capital supply for the economy and reducing interest rates, the Banking Association had a meeting with credit institutions and reached a consensus The maximum deposit interest rate is 9.5%/year. This level includes promotions plus interest when depositing.
Commercial banks have agreed to thoroughly implement the direction of the State Bank, agreeing to further reduce deposit interest rates.
According to PV’s research, currently a number of large commercial banks are “moving” to adjust the deposit interest rate schedule and are expected to apply a new savings interest rate schedule from the beginning of next week (February 13). Accordingly, the highest savings interest rate is only 8.7%/year (according to the adjusted list), instead of 9.5%/year as mentioned above.
In fact, PV’s observations at a number of bank branches in Hanoi show that the maximum interest rate table has now been slightly adjusted compared to the previous week.
For example, at Techcombank branch, savings interest rate is listed at a maximum of only 9%/year, instead of 9.2%/year in the previous week and down 0.5 percentage points compared to before Tet. Lunar New Year.
Or like at an ABBank branch, with a regular savings account at the counter, the highest savings interest rate for a 12-month term is only 8.7%/year, instead of 9%/year.
Similarly, at MB bank branch, TPBank outside Hanoi is also listing the highest savings interest rate of 8.7%/year, much lower than the maximum interest rate of 9.5%/year. previously committed banks.
Not only in the residential market, lending interest rates in VND among commercial banks have also cooled down in recent sessions, no longer showing interest rates up to 13%/year.
Specifically, according to the latest update from the State Bank (February 8), the average interbank interest rate for transactions in VND is the highest at 10.4%/year for a 6-month term.
Overnight term has also been below 6%, specifically 5.72%/year.
For 9-month term, the average interest rate according to the latest update is only 9.61%/year, while last week the average interbank interest rate for this term was up to 13%/year.
Also in the trading session on February 8, the State Bank also attracted nearly 20,000 billion dong, 8 participants won the bid of valuable papers with a term of 7 days, interest rate of 6%/year. This is the session that money managers attract the most money since the Lunar New Year.
Thus, in the past 10 days, the money manager has pumped nearly 80,000 billion dong into the market, while withdrawing 55,000 billion dong through the open market channel.
Savings interest rates still falling?
The analysis department at Bao Viet Securities Company (BVSC) said that deposit interest rates were almost flat in January, showing signs of cooling down from the end of the month.
With the pressure to support the exchange rate easing, BVSC believes that the pressure to raise interest rates will no longer be in 2023. Instead, monetary policy this year is likely to shift to a supportive direction for growth.
BVSC expects interest rates to fall again in 2023, with clearer signs from the second quarter of 2023, when the US Federal Reserve (Fed) stopped raising interest rates and Vietnam’s inflation cooled down. .
Many forecasts show that savings interest rates will decrease from now until the end of the year.
Mr. Nguyen Dinh Tung, General Director of Orient Bank (OCB) also said that interest rates will gradually decrease in the coming time, especially when the Fed’s rate hike roadmap is expected to peak.
Also according to Mr. Tung, savings interest rates raised to a high level are only unique in some banks, not a common phenomenon in all banks.
“For Vietnam, internal problems in the banking industry are also well controlled by the State Bank. Among them, there are liquidity problems, even if the incident is related to a bank. At the same time, the exchange rate is also on a downward trend and is expected to decrease in 2023. Therefore, the comments are made, the current interest rate is said to have reached the “peak” and is expected to cool down. gradually from the second quarter of 2023 and then the interest rate will also decrease further”, Mr. Tung forecast.
Regarding interest rates, the State Bank affirmed that it always directs commercial banks to reduce costs and lower interest rates to support businesses. The State Bank will manage and try to lower interest rates under favorable and permissible conditions.