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All major banks slash deposit interest rates
All major banks have slashed their deposit interest rates across all terms following the rate cut by the State Bank of Viet Nam (SBV) earlier this week.
VietinBank and BIDV were the latest banks to adjust their interest rate tables. Both banks lowered their interest rates for one-month and two-month terms to 3.4 per cent per year, and rates for three- to five-month terms to 4.1 per year. They also adjusted rates for other terms. The rates for terms between six and less than 12 months are now 5 per cent per year, while the interest rate for terms of 12 months is 6.3 per cent per year.
Compared to previous rates, VietinBank and BIDV decreased deposit interest rates by 0.5 per cent to 0.7 per cent per year, depending on the term.
These adjustments brought their rates in line with Agribank and Vietcombank, which also made changes. As a result, all four major banks now have uniform deposit interest rates across all terms.
Prior to this, following a reduction in operating interest rates announced by SBV on Monday, many banks swiftly decreased their deposit rates.
Several banks lowered rates for one- to five-month terms to the maximum limit set by regulations, at 4.75 per cent per year, including HDBank, Eximbank, OCB, VPBank, TPBank and SHB.
Viet Capital Bank (BVBank) even lowered rates to 4 per cent to 4.5 per cent per year for ordinary savings deposits and 4.4 per cent to 4.75 per cent per year for online savings deposits, below the ceiling set by the State Bank.
PVcomBank significantly decreased interest rates by 0.5 per cent per year for terms of six months or more. OCB also lowered rates for six-month and nine-month terms, while the 12-month term is now 7.6 per cent per year.
The highest interest rate for the 12-month term now stands at 7.8 per cent listed by GPBank, Indovina Bank (IVB) and Public Bank.
SBV’s Deputy Governor Dao Minh Tu said the central bank had reduced interest rates four times this year, with cumulative decreases ranging from 0.5 per cent to 2 per cent per year. The State Bank continued to encourage credit institutions to minimise costs and stabilise lending interest rates to support business recovery and development.
The average deposit interest rate is around 5.8 per cent per year, and the average lending interest rate in Vietnamese dong is approximately 8.9 per cent per year, representing a 1 per cent decrease compared to the end of 2022.
The central bank set a credit growth target of 11 per cent for banks, and as of June 15, 2023, the credit balance in the entire economy had increased by 3.36 per cent compared to the end of 2022. However, this represents a slower pace compared to previous years.
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