Banks continue to slash deposit rates

The State Bank of Vietnam has directed numerous banks and credit institutions to lower interest rates, particularly savings rates, to support consumers and companies.

Prime Minister Pham Minh Chinh and the State Bank of Vietnam directed banks to lower deposit and lending rates. For current and future loans, aim for a 1.5%–2% annual interest rate decrease to help companies and individuals recover and grow.

Currently, interest rates in most banks are: 6-7 months reduced by 0.2% to 6.8% per year; 8–11 months declined by 0.1% to 6.9% per year; and 12–36 months is 7% per year.

However, the "big 4" banks—Vietcombank, Vietinbank, BIDV, and Agribank—announced a 6.3% 12-month savings interest rate.

Techcombank lowered interest rates by 0.7% for 6-month maturities. This bank's maximum interest rate for online deposits of VND 3 billion or more for 12 months or more is 6.3% per year. The 6-month online deposit interest rate is now 5.85%–6.2% per year, compared to 5.85%–6.05% for regular clients.

Sacombank also lowered short-term deposit interest rates. Online savings 1-month term interest rates have dropped from 4.75% to 3.9%. The 3-month interest rate dropped from 4.75% to 4.1% per year.

Sacombank's 6-month online deposit interest rate dropped 0.2% to 5.9% per year. The 12-month and 36-month term interest rates dropped 0.3% to 6.3% and 6.5%, respectively.

ACB, VietABank, BacA Bank, NamABank, BaoVietBank, NCB, PVComBank, HDBank, Kienlongbank, DongABank, and others have also pledged to lower deposit interest rates from 3 to 36 months.

Savings interest rates have fallen by 3–4% from last year's peak, particularly for terms of 6 months or longer.

The deposit interest rate fell drastically when the State Bank reduced the operating interest rate four times and had ample liquidity. Interest rates correspond to the first half of 2022.

Source: VOV