Bac A Bank First to Raise Deposit Rates in July 2026, 6-Month Hits 7.05%

Overview

Bac A Bank (ABB) has become the first bank in Vietnam to raise deposit rates in July 2026, increasing rates by 20 basis points across multiple tenors. The 6-month deposit rate now stands at 7.05% per annum, placing ABB among a select group of banks offering above 7% for that tenor. The bank also simplified its rate structure by applying a uniform rate for all deposit sizes, replacing the previous tiered system.

Key Facts

• Bac A Bank raised deposit rates by 0.2 percentage points across multiple tenors effective July 13, 2026.
• 6-month deposit rate increased to 7.05% per annum, among the highest in the market.
• 12-month deposit rate now at 7.1% per annum, up 20 bps.
• Rates for 1-5 month tenors increased to 4.75% per annum.
• Rates for 13-36 month tenors adjusted to 6.95% per annum.
• The bank eliminated the previous tiered structure (under VND 1 billion vs. above), now offering a single rate for all individual depositors.
• ABB is one of only four banks (with ACB, MBV, VCBNeo) offering 7%+ for 6-month deposits.

What Happened

Bac A Bank announced a revision to its deposit rate schedule on July 13, 2026, raising rates by 20 basis points across most tenors. The bank also changed its pricing methodology: instead of offering different rates for deposits under VND 1 billion and above VND 1 billion, it now applies a single rate for all individual customers. This effectively gives smaller depositors the same rate previously reserved for larger deposits.

The move makes Bac A Bank the first lender to hike deposit rates in July 2026, following a period of relative stability in June and early July. The bank now joins a small group of banks (including ACB, MBV, and VCBNeo) that explicitly offer 7% or more for 6-month deposits. However, many other banks are reportedly offering even higher rates (8-9%) through negotiated deposits, though not publicly listed.

Market Context

ABB shares closed at VND 17,000 on July 13, 2026, on the UPCOM exchange. The banking sector has seen deposit rates stabilize after adjustments in June and early July, with most large banks (Vietcombank, VietinBank, BIDV, Agribank) maintaining lower rates. Smaller commercial banks like ABB are using higher deposit rates to compete for funding. ACB, another affected ticker, closed at VND 22,450 on HOSE. The rate hike by ABB may signal a new wave of deposit rate competition, particularly among mid-sized banks.

Strategic Significance

ABB’s rate increase and simplification of its deposit structure aim to attract retail deposits and improve funding stability. By offering a uniform high rate, the bank may gain market share in retail deposits, but it also risks compressing net interest margins if lending rates do not rise correspondingly. The move could pressure other mid-sized banks to follow suit, potentially leading to a broader uptick in deposit costs across the sector. For investors, this highlights the delicate balance banks must strike between deposit growth and profitability in a competitive environment.

What to Watch

• Whether other mid-sized banks (e.g., HDBank, Sacombank) announce similar rate hikes in the coming weeks.
• ABB’s Q2 2026 earnings report for net interest margin trends.
• State Bank of Vietnam (SBV) policy signals on interest rates and liquidity.
• Deposit growth data for ABB in July and August 2026 to gauge the effectiveness of the rate hike.
• Any changes in ABB’s lending rates to offset higher funding costs.