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Deposit rates seen dropping further at year-end

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HCMC – Many lenders have continued slashing the deposit rates applied for individual customers in the wake of the third policy rate cut announced by the State Bank of Vietnam early this month.

Vietcombank has announced a new rate list, offering a deposit rate at 3.1% per annum for the one-month tenor, down 0.3 percentage points compared with early August. Meanwhile, its six-month rate has dropped slightly to 4% per annum and that for the 12-month term has been lowered to 5.3% per annum.

At ACB, depositors are subject to a one-month rate of 3.6% per annum, down by around 0.1 percentage point, while the six-month rate stays unchanged at 5.1% per annum.

Techcombank revised its mobilization rates in the middle of September, with the rate for the one-month tenor slashed by 0.3 percentage points at 2.55% and six-month tenor by 0.2 percentage points at 4.4% annually. Therefore, its one-month rate is lower than that of other banks, while the six-month rate remains competitive.

Meanwhile, some private banks still offer higher rates, with HDBank applying a rate of 3.55% per annum for the one-month term and 5.45% per annum for the six-month tenor.

VIB now applies a 4% rate for a one-month deposit, the maximum level regulated by the State Bank of Vietnam. Meanwhile, the bank’s six-month rate stands at 5.9% per annum.

Some banks have also revised down mobilization rates for tenors of six months or longer, cutting them by between 0.1 and 0.5 percentage points.

Data from SSI Securities Corporation showed that most small lenders have cut mobilization rates since late September while large banks have kept them intact.

In September, bank rates fell between 0.2 and 0.8 percentage points for most tenors. Since early this year, deposit rates have dropped by 1.2 to 2.4 percentage points.

Quoting FiinGroup’s statistics, Bao Viet Securities said the fall of mobilization rates is the result of strong liquidity at banks. The deposit rates of tenors under six months are expected to fall further but those of the long term may remain stable in the last quarter of 2020.

Early this month, the central bank cut policy rates for the third time this year, following the first and the second cuts in March and May, respectively.

“The central bank’s decision will not affect mobilization rates. The key factor is the lending situation at banks. Deposit rates are projected to dip 0.1 to 0.3 percentage points in the last quarter of 2020,” said the SSI report.

By Dung Nguyen

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