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Wednesday, July 24, 2024

Deposit interest rates plunge to record lows

The Saigon Times

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HCMC – Several major banks have reduced interest rates for 12-month deposits to below 5.5% per year, which is lower than the level during the Covid-19 outbreak.

In early October, the state-run commercial bank Vietcombank lowered deposit rates by 0.2 percentage point for deposits with a term of three months or longer.

As of October 3, the highest deposit rate at Vietcombank stood at 5.3%, which is 50 basis points lower than the pandemic level. For deposits with a term of one month or less than 12 months, Vietcombank offers rates ranging from 3% to 4.3% per year.

Following recent adjustments in September, the highest deposit rates offered by the other three major state-run commercial banks – Agribank, BIDV, and VietinBank – are now 5.5% per year.

Private banks like BaoVietBank, LPBank, ABBank and CBBank also significantly reduced their deposit rates at the beginning of this month, while their deposit rates surged to 11% or 12% per year at the end of last year.

By October 3, DongABank’s online rate had stayed at 7% for deposits with a 13-month term, the highest in the banking system. For deposits with a term of less than 12 months, the highest rate offered by the bank is 6.75% per year.

For deposits with a 12-month term, rates ranging from 6% or more are offered at banks including OceanBank, BacABank, SCB, VietCapitalBank, LPBank, Sacombank, NCB, CBBank, VietBank, NamABank, HDBank, PVComBank, VietABank, BaoVietBank and DongABank.

Over 20 other banks have lowered deposit rates for a 12-month tenure to below 6% per year. Rates of 6% or 6.5% can still be found at some banks, but they are offered for deposits with a term of 18 months or longer.

Currently, the lowest deposit rates, at 5.5% per year or below, are offered by four state-run commercial banks and some private banks like VPBank, MSB, Techcombank, SeABank, GPBank and ABBank.

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