Hong Leong Bank Vietnam, a Malaysian lender, has announced an increase in deposit rates to 8.6 per cent a year for deposits from VND 1 million (USD 39) for six- and 12-month terms.
Compared with its previous rate schedule, this marks a rise of 2.3 percentage points, from 6.3 per cent to 8.6 per cent a year. The preferential rate programme will run from September 16 to September 30.
At 8.6 per cent a year, Hong Leong Bank is now among the foreign banks offering the highest deposit rates in Vietnam.
Before Hong Leong Bank, CIMB Vietnam, another Malaysian lender, had also launched a deposit campaign offering rates of up to 8.8 per cent a year for six-month deposits from VND 1 million (USD 39). However, that programme lasted only two days, on September 9 and 10.
Earlier, Public Bank Vietnam, also from Malaysia, raised its highest deposit rate to 8 per cent a year, at a time when such levels had yet to become common on the official rate boards of domestic banks.
A bank cash transaction is checked (Photo: Thanh Dong).
At Woori Bank, a South Korean lender, the highest listed rate for fixed deposits is currently 6.3 per cent a year, applied to a 24-month term. For instalment savings products, rates can reach as high as 7.8 per cent a year for terms from 24 months. To qualify, however, customers must maintain the monthly savings amount set under their registered target. If they fail to meet the committed amount, the deposit will be subject to the bank's demand deposit rate in force at the time.
On the lending side, Woori Bank is reporting an average lending rate that is relatively low compared with some domestic banks. According to figures published by the bank, the average lending rate in August was 5.98 per cent a year.
At KBank Vietnam, a Thai lender, savings deposit rates start at 4.75 per cent a year for short one- and three-month terms. For six-month deposits, customers receive 5.8 per cent a year, rising to 5.9 per cent for 12-month terms. Longer terms of 24 and 36 months currently carry the highest rate of up to 6.9 per cent a year.
Meanwhile, deposit rates at domestic banks remain mostly below 8 per cent a year for terms of six months and longer. The group of state-owned commercial banks, including Agribank, BIDV, Vietcombank and Vietinbank, are all listing 6.6 per cent a year for six- and nine-month terms, and 6.8 per cent for 12- and 18-month terms.
Among joint-stock commercial banks, higher rates have been recorded at several lenders. ACB is listing 7.6 per cent a year for six-month terms, 7.7 per cent for nine months and 7.8 per cent for 12 months. Sacombank is also applying 7.2 per cent a year for six- and nine-month terms, rising to 7.5 per cent for 12- and 18-month terms.
However, these are only the officially listed rates. In practice, some joint-stock commercial banks are offering rates from 9 per cent a year on deposits, depending on the amount, term and the customer's ability to negotiate with the bank.