Raising interest rates on seasonal deposits: Good or bad?

After the Lunar New Year holiday, a series of listed banks raised interest rates on savings deposits. Will this increase in interest rates be beneficial or harmful to the overall economic situation of the country? read more https://tygia.vn/ty-gia/techcom

At the beginning of 2019 Lunar calendar, many listed banks raised deposit rates. Specifically, SCB's interest rate table has reached 8.65% for deposit term from 18 to 36 months of online savings. This is the highest listing on the market after Tet. In addition, at this term, SHB bank interest rate is 7.5% and Martime Bank's online deposit interest rate also reaches 7.1%. read more https://tygia.vn/ty-gia/bidv

According to experts, the current rise in interest rates is not a problem. However, it can affect many businesses and people. Because this trend can bring benefits to many people, on the contrary it can make it difficult for many people and businesses to borrow money.

Firstly, for depositors, the increase in interest rates will increase the profit that idle money brings. But it will cause lending rates to increase accordingly. This will make it more difficult for people who need loans. Especially business objects.

Secondly, the increase in interest rates may entail a race between banks to attract depositors. For example, Vietcombank's deposit interest rate will increase, causing customers to rush to deposit into this bank. Of course, if another bank wants to have competition, it is imperative to raise deposit interest rates more attractive. As such, it will lead to a very strong bank interest race. read more https://tygia.vn/ty-gia/exim

The shortcomings when banks raise high interest rates are not only difficult for those who need to borrow cash, but also difficult for customers with demand for home loans. Increasing deposit interest rates make lending rates rise so those who are planning to buy houses by borrowing from banks will be worth considering.

Facing the above situation, what the experts say is that the State Bank should have the lending mechanism as well as the development policies of banks in a reasonable manner. For interest rates of commercial banks such as BIDV, Vietinbank, Vietcombank, etc., it is necessary to have more favorable interest rates for depositors and borrowers. This is to ensure a balance in the market. read more https://tygia.vn/