In early December, several banks continued to increase their interest rates for savings deposits, extending a trend that began over a month ago. A growing number of banks are now offering an annual interest rate of 4,75% for short-term deposits under six months, which is the ceiling set by the State Bank.

Orient Commercial Joint Stock Bank (OCB) adjusted its savings interest rate schedule on 9/12, with increases from 0,4% to 0,9% compared to the previous month, depending on the term. At OCB, deposits of 500 million dong or more for terms of two to five months receive an annual interest rate of 4,75%. Deposits for six to 11 months earn 5,9%, and 12-month deposits reach 6,2% per year.

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) also increased interest rates by 0,3% to 0,5% on 5/12 for various terms, targeting online savings customers. Consequently, interest rates for three months to under six months reached the 4,75% ceiling, and the rate for 12 months increased to 5,8%.

Since the beginning of this month, Ban Viet Commercial Joint Stock Bank (BVBank) has also offered a 4,75% interest rate for online deposits ranging from 92 to 183 days, for amounts of 100 million dong or more.

National Citizen Commercial Joint Stock Bank (NCB) implemented a new interest rate schedule from 8/12, increasing rates by 0,3% to 0,8% across various terms. Specifically, the interest rate for online five-month deposits rose to 4,75%, and 12-month deposits increased to 6,2% per year.

From mid to late November, other banks like VIB, NamABank, MBV, and CIMB also applied the 4,75% ceiling for some deposits with terms under six months.

Customers conduct transactions at a private bank. *Photo: Giang Huy*

Many banks are also launching promotional programs, offering additional interest, cash gifts, and in-kind incentives to attract savings customers during the year-end period.

The competition to attract savings customers is intensifying during the year-end peak lending season, driven by rapid credit growth this year.

The Director of Funding and Financial Markets at Vietnam Prosperity Joint Stock Commercial Bank (VPBank) noted that the prolonged situation of "credit growing faster than deposits" is creating pressure on liquidity and interest rates at year-end.

Total credit for the economy by the end of November surpassed the 16% growth target compared to the end of 2024, reaching a multi-year high. Nearly 70% of this credit flowed into the service sector, 24% into the industrial and construction sector, and 6% into the agriculture, forestry, and fisheries sector.

According to a VIS Rating report, liquidity risk remains elevated for smaller banks due to their greater reliance on short-term market funding to support credit growth. The loan-to-deposit ratio (LDR) for the entire industry reached a five-year high of 111%, as robust credit growth significantly outpaced deposit growth. This liquidity pressure is most evident in smaller banks and is expected to continue.

As savings interest rates have trended upward for several months, banks' lending rates are also gradually increasing. Interest rates for new loans at some institutions have risen by about 0,5-1% compared to the previous month. Many large banks recently halted low-interest loan programs for homebuyers, and floating lending rates at some private banks are also beginning to climb.

Quynh Trang