LPBank Raises Deposit Rates 30bps, Joins Top-Tier Yields

Overview

LPBank (LPB) has increased deposit interest rates by 0.3 percentage points for tenors from 6 to 25 months, effective August 3, 2026. The adjustment brings online savings rates to as high as 7.3% per annum, placing LPBank among the top-yielding banks in Vietnam’s banking system. This rate hike reflects intensifying competition for deposits and has implications for LPB’s funding costs and net interest margin.

Key Facts

• LPBank raised deposit rates by 0.3 percentage points for tenors of 6-25 months, effective August 3, 2026.
• Online rates for 12-month and 24-25 month tenors reached 7.3% per annum, the highest in the bank’s online schedule.
• Online rates for 6-11 month tenors increased to 7.1% per annum.
• Short-term online rates (1-5 months) were raised by 0.1 percentage points, with 3-5 month tenors at 4.75% per annum, the ceiling for under-6-month deposits.
• Over-the-counter (branch) rates for 6-25 month tenors also rose by 0.3 percentage points, with the highest at 6.9% per annum for 24-25 month tenors.
• Long-term tenors of 36-60 months remained unchanged at 6.2% per annum.
• LPBank’s online rates are now 0.2-0.4 percentage points higher than branch rates for most tenors.

What Happened

LPBank (Lien Viet Post Joint Stock Commercial Bank, now known as Ngân hàng TMCP Lộc Phát Việt Nam) updated its deposit rate schedule effective August 3, 2026. The bank raised rates by 0.3 percentage points across tenors from 6 to 25 months for both online and branch channels. Online rates for 12-month and 24-25 month tenors now stand at 7.3% per annum, the highest in the bank’s schedule. Short-term online rates (under 6 months) were also increased by 0.1 percentage points, with 3-5 month tenors at 4.75% per annum, matching the State Bank of Vietnam’s ceiling for deposits under six months.

For branch deposits, rates for tenors under 6 months were unchanged, but 6-25 month tenors rose by 0.3 percentage points. The highest branch rate is now 6.9% per annum for 24-25 month tenors. Long-term tenors of 36-60 months remain at 6.2% per annum. The adjustment makes LPBank one of the highest-yielding banks in the market, according to the article.

Market Context

LPB shares closed at VND 53,000 on August 3, 2026, on the HOSE. The rate hike comes amid a competitive deposit environment in Vietnam, with several banks raising rates to attract funds. LPBank’s move to offer 7.3% online rates places it at the top tier of the system, which could pressure its net interest margin if lending rates do not rise correspondingly. The bank’s recent price action suggests investor focus on funding costs and margin trends.

Strategic Significance

This rate increase signals LPBank’s aggressive strategy to secure retail deposits, likely to support credit growth or manage liquidity. For long-term investors, the key concern is whether the higher funding costs can be offset by higher-yielding assets or improved operational efficiency. If LPBank maintains this rate premium, it may attract deposits but could compress margins, affecting profitability. The move also reflects broader competitive dynamics in Vietnam’s banking sector, where smaller banks often lead rate hikes to gain market share.

What to Watch

• LPBank’s Q3 2026 earnings report, due in October, to assess net interest margin impact.
• Whether other banks follow with similar rate hikes, indicating a broader trend.
• LPB’s credit growth and deposit growth figures in the coming months.
• Any regulatory response from the State Bank of Vietnam regarding rate competition.
• LPB’s stock price reaction and foreign ownership changes following the rate decision.