Today: 26/09/2023 12:12:06 (GMT+7)

Almost all banks cut 6-month deposit interest rate to below 8%/year

Almost all banks in Vietnam have cut interest rates for deposits for terms from six months and above to below 8% per year.

Out of the total 35 banks, only five banks are keeping their 12-month deposit interest rate at 8-8.2% including VIB (8.2%), BaoVietBank (8.1%), ABBank (8.1%), GPBank (8.02%) and NCB (8%).

Almost all banks, 6-month deposit interest rate, cut interest rates, Lower interest rates, commercial banks, lending rates

Almost all banks cut 6-month deposit interest rate to below 8%/year.

Lower interest rates are seen at other banks, including OCB (7.9%); SCB, BVBank and VietABank (7.8%); VietBank, OceanBank, BacABank, PVCombank, LPBank (7.7%).

To six-month deposits, NCB offers the highest interest rate of 7.95% per year, folollwed by GPBank (7.92%), ABBank (7.8%), SCB (7.75%) and VietBank (7.7%).

Meanwhile, BaoVietBank, Oceanbank, BacABank, VPBank are offering the same rate of 7.5% for six-month deposits.

State-owned commercial banks also simultaneously cut deposit interest rates. Highest interest rates at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and Vietnam Bank for Agriculture and Rural Development (AgriBank) were reduced from 7.2%/year to 6.8%/year, applicable for terms of 12 months or above; while the interest rate for deposits with terms of 6-9 months also decreased from 5.8 - 5.9%/year to 5.5%/year.

The current interest rate of many banks has decreased by more than 1%/year compared to the beginning of May. Some banks have even reduced deposit interest rates three or four times within the past month, such as VietBank, OCB, NCB, VietABank, Kienlongbank, Saigonbank and Sacombank.

In the latest developments, Kienlongbank announced the reduced deposit interest rates from June 1.

With a reduction of 1%/year for a term of 6 - 9 months, the interest rate at the bank is down to 6.7 - 6.9% per year. The 12-month term interest rate also decreased by 0.7% per year to 7.1% per year.

The recent interest rate cut shows banks' consensus in their efforts to reduce deposit interest rates, creating conditions for further cut in lending rates to support businesses and people, especially after the State Bank's decision to cut policy interest rates, which takes effects from May 25.

Evaluating the interest rate outlook, in its updated report on June 1, the SSI Securities Corporation predicts that interest rates can drop by another 50-100 basis points from now until the end of the year and will continue to decrease next year.

Reducing loan interest rates an important policy to support businesses: central bank deputy governor
The State Bank of Vietnam (SBV) has been drastically implementing measures, particularly those to reduce loan interest rates, said its deputy governor Dao Minh Tu at a regular government press conference on May 5, calling it one of the important and practical policies to help businesses.
Many commercial banks reduce loan interest
(BGO) – To remove economic difficulties and support enterprise and people to recover business and production activities, since mid April 2023, many branches of commercial banks in Bac Giang province have reduced loan interest.
Vietnam’s regulatory interest rates to be reduced by 0.5-1% from March 15: SBV
The State Bank of Vietnam (SBV) on March 14 issued two decisions to reduce regulatory interest rates by 0.5% to 1%, which will come into force on March 15.
Banks reduce deposit interest rates
Banks have cut deposit interest rates by 0.3-0.5 percentage points after Prime Minister Pham Minh Chinh called on them to foster economic recovery.
Expectation to reduce lending interest rates
Deposit interest rates in the market have simultaneously decreased by a sharp 1-2% a year compared to the peak period (around November 2022). Businesses expect that this move will reduce lending interest rates in the near future to help support production and business.

Source: VNA

Almost all banks, 6-month deposit interest rate, cut interest rates, Lower interest rates, commercial banks, lending rates
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