Most of banks lowers 6-month deposit rate to below 8% per year

Only five out of the 35 banks including VIB (8.2%), BaoVietBank (8.1%), ABBank (8.1%), GPBank (8.02%), and NCB (8%) retain their 12-month deposit interest rate at 8–8.2%.

While OCB (7.9%), SCB, BVBank, and VietABank (7.8%), VietBank, OceanBank, BacABank, PVCombank, and LPBank (7.7%), among others, provide lower interest rates.

With an interest rate of 7.95% annually, NCB provides the highest interest rate for six-month deposits, followed by GPBank (7.92%), ABBank (7.8%), SCB (7.75%), and VietBank (7.7%).

For six-month deposits, BaoVietBank, Oceanbank, BacABank, and VPBank are all providing the same rate of 7.5%.

State-owned commercial banks concurrently lowered deposit interest rates as well. The highest interest rates at VietinBank, BIDV, and AgriBank have decreased from 7.2%/year to 6.8%/year, applicable for terms of 12 months or more; the interest rate for deposits with terms of 6 to 9 months has also decreased.

Many banks' current interest rates are lower than 1%/year lower than they were at the beginning of May. Some financial institutions, including VietBank, OCB, NCB, VietABank, Kienlongbank, SaigonBank, and SacomBank, have even cut deposit interest rates three or four times in the previous month.

Recent events include Kienlongbank's announcement of lowered deposit interest rates beginning June 1.

The interest rate at the bank drops to 6.7 to 6.9% per year with a decrease of 1%/year for a duration of 6 to 9 months. Additionally, the 12-month term interest rate dropped by 0.7% annually to 7.1% annually.

After the State Bank's decision to lower policy interest rates, which goes into effect on May 25, the most recent interest rate decrease demonstrates banks' agreement in their efforts to lower deposit interest rates, establishing the necessary circumstances for additional reductions in lending rates to help companies and individuals.

In its latest analysis from June 1, the SSI Securities Corporation evaluated the prospects for interest rates and forecasted that rates might decline another 50-100 basis points this year before declining further next year.

Source: VNA