Hanoi (VNS/VNA) - Interest rates for VND-denominated for long term deposits at commercial banks have reached 7.4% per year, according to the State Bank of Vietnam (SBV).

Under a recent report on deposit and lending interest rates of commercial banks, the SBV said the average deposit interest rates have increased to 6.9-7.4% a year for terms of more than 24 months.

Meanwhile, the rates for terms from 12 months to 24 months and from 6 months to 12 months are 5.5-6.2% and 4.4-4.8% per year, respectively.

For short-term deposits, the rate is 2.4-3.4% per year for terms from one month to less than six months and 0.2% for less than one month.

As for lending interest rates, the average lending interest rate of domestic commercial banks for both new and existing loans is in the range of 6.9-9.3% per year, of which the rate for short-term loans is 4.1-5.0% per year and 6.3-7.4% per year for medium and long term.

The average short-term lending interest rate for priority sectors is about 3.6% per year, lower than the 4% short-term lending interest rate cap prescribed by the SBV.

In the interbank market, the overnight interest rate is at 4.5% per year, while the rates for terms of one-week, two-week, and one-month are 4.57%, 4.52% and 4.79% per year, respectively.

Since the beginning of the second half of this year, many banks have increased deposit interest rates significantly.

Experts forecast deposit interest rates will increase further in the context of increasing inflationary pressure from the third quarter of this year.

The expected recovery in credit demand thanks to positive prospects for the manufacturing industry and export activities will also lead to banks' need to raise capital, which will cause deposit interest rates to continually increase at the end of the year.

Vietcombank Securities Company (VCBS) forecasts that deposit interest rates in the third quarter of 2024 will continue to increase by about 0.3-0.5 percentage points. The rising pressure may continue in the fourth quarter, pushing the rate up by 0.5-1 percentage point for the whole year.

Banking expert Nguyen Tri Hieu said economic growth is stronger and individuals and enterprises are borrowing more from banks. This will push up the credit ꦅdemand so banks are tending to increase interest rates to attract deposits to meet customers' capital needs./.