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Tuesday, June 25, 2024

Banks reduce deposit rates

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HCMC – Local banks have slashed deposit rates to save operating costs and smooth the path for their plans to lower lending rates to support businesses affected by the coronavirus pandemic.

Commercial banks with State holdings have reduced deposit rates for various tenors.

The Bank for Foreign Trade of Vietnam (Vietcombank) lowered deposit rates by 0.2-0.3 percentage point for tenors from six months onward in early April. Customers depositing money for a 12-month term at the bank’s branches and transaction offices will enjoy the annual rate of 6.6%, instead of 6.8% as previously announced.

The current highest deposit rate at Vietcombank is 6.8% per year and only applies to the 24-month term.

Meanwhile, the Vietnam Bank for Industry and Trade (VietinBank) has dropped deposit rates for most tenors of three months onward by 0.1-0.2 percentage point. The rate for the 12-month term or for savings of 24-36 months has been kept unchanged at 6.8%.

Specifically, at Vietinbank, the rate for savings of three to six months is now 4.7%. The rate for a tenor from six months to less than 12 months is 5.1%, down 0.2 percentage point. The rate for savings longer than 36 months has declined by 0.2 percentage point to 6.6%.

The Bank for Investment and Development of Vietnam, another State-owned lender, also lowered deposit rates by 0.05-0.2 percentage point for most tenors. Only the one-year tenor was left unchanged, at 6.8%.

At private banks, the deposit rates have been slashed sharply by 0.2-0.7 percentage point.

At MBBank, the rates for tenors of less than three months were steeply cut by 0.4-0.5 percentage point. The six-month rate fell by up to 0.4 percentage point to stay at 6%.

Asia Commercial Bank, or ACB, has cut deposit rates for most terms by 0.25-0.55 percentage point from April 6.

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