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Sunday, July 21, 2024

Major banks further cut deposit rates

The Saigon Times

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HCMC – Four State-run banks have further reduced interest rates for deposits of various tenors in a bid to make loans cheaper for businesses that are struggling to survive tough times.

Vietinbank has recently trimmed its deposit rates by 0.1 percentage point across different terms. Specifically, its rates for one to three-month tenors now stand at 3.3% per year, from three to six months at 4.1%, from six to 12 months at 5%, and for tenors of 12 months and longer at 6.3%.

Similarly, Vietcombank and BIDV have also lowered their deposit rates for one-month and two-month terms, bringing them down from 3.4% to 3.3% per year.

Agribank has taken similar steps by reducing its deposit rates for tenors from 13 to 24 months by 0.3 percentage point, from 6.3% to 6%, and for one and two-month tenors by 0.1 percentage point, from 3.4% to 3.3%.

The non-term deposit rates offered by these major banks remain at around 0.1% per year.

On the other hand, certain commercial joint-stock banks are still offering higher deposit rates. These rates range from 4% to 4.75% per year for terms under six months, 6% to 7.4% for a six-month term, and 6.3% to 8.2% for terms above 12 months.

It is expected that deposit interest rates will continue to move downward in the rest of the year, with the average deposit rate for a 12-month term estimated to be around 6.2%. This represents a 1.8% decrease compared to the beginning of the year and a 0.45% decrease from the current rates. In parallel, lending rates for a 12-month tenor are projected to decline by 1.8 to 2.3 percentage points against the rates early this year.

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