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Wednesday, July 17, 2024

Major banks lower deposit interest rates below 6%

The Saigon Times

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HCMC – Several major banks have reduced their deposit interest rates to below 6% per year. This marks the fifth significant interest rate cut they have made in the year to date.

The four State-owned commercial banks –  Vietcombank, BIDV, VietinBank and Agribank – have recently lowered their deposit rates by 0.5 percentage point to below 6%.

There is not much difference in the interest rates offered at the counters of these four State-owned commercial banks. Specifically, deposits with a one-month term now fetch a rate of 3% per year. For three-month term deposits, the rate is 3.8% per year, while the rates for deposits with six or nine-month tenures stand at 4.7% per year. Deposits with a twelve-month term will receive an interest rate of 5.8% per year.

Conversely, online deposit rates among these four banks show slight variation, with the highest rate being 5.8% per year.

Numerous private banks have also recently revised down their deposit rates, the second reduction of deposit rates within this month.

Deposit interest rates at private banks like Techcombank, ACB and Eximbank have all been adjusted down to below 6%.

ACB has made its second deposit rate cut of the month, lowering the highest rate from 6.7% to 5.5% per year for deposits of under VND1 billion. Meanwhile, Eximbank now offers a deposit interest rate of 5.8% per year, having reduced it by 1.6 percentage points from 7.4%.

The State Bank of Vietnam (SBV) reported that credit growth reached around VND12,470 trillion by the end of July, an increase of only 4.56% from the beginning of this year. This growth is considerably below the full-year target set at 14-15%.

Given the recent substantial reductions in deposit rates, the State Bank of Vietnam (SBV) has recently urged commercial banks to further decrease lending interest rates for both existing and new loans, by at least 1.5%-2%, following the guidance by the Government.

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