Banks’ deposit interest rates go through the roof

The race to increase deposit interest rates has already begun among banks, just one day after the central bank jettisoned the 12% cap.

Nam Viet Commercial Joint Stock Bank, known as Navibank, raised deposits worth VND58 billion (US$3.6 million) within 30 minutes of opening after announcing an 18% interest rate.

The HCMC-bank later reduced the rate to 15.4%.

Saigon Thuong Tin Commercial Joint Stock Bank, or Sacombank, is offering 14% per year for deposits of over six months and 13.5-13.8% per year for terms below that.

It also announced a bonus of 0.005 to 0.025% per month for deposits worth VND50 million ($3,000).

Interest rates on US dollar deposits have not changed much, however.

For deposits of five months and above, the rate is 7% per year.

Deposits of $5,000 and more will get a bonus of 0.05 to 0.25%.

Housing Development Bank, which is offering 14% per year for deposits of between six months and one year, said the number of depositors surged by 30-40% Monday.

It also said many clients who deposited last week withdrew their money to make fresh deposits.

The Viet Nam Bank for Agriculture and Rural Development, or Agribank, kept interest rates unchanged at 12% in the morning.

But by the end of the day it had raised it to 14.8% across the board.

Southern Bank raised interests in the morning to 13% per year for deposits of between one month and six months and 13.5% per year for six months and above in the morning.

Later in the day it increased the rate to 14% across the board.