According to the latest mobilising rates at ACB, one- to two-month deposit rates have dropped to only 5.5 percent yearly, down to 0.4 percent compared to the previous rate. The three-month rate fell to 5.6 percent yearly compared to 6 percent earlier.
The interest rates of long-term deposits also fell sharply. The six-month rate fell from 6.55 percent yearly to 6.1 percent; the nine-month rate fell from 6.6 percent yearly to 6.3 percent; and the 12-month rate fell from 7.7 percent to 6.9 percent.
Sacombank also cut deposit interest rates slightly. The seven- to eight-month rates fell from 6.55 percent yearly to 6.4 percent; the nine-month rate fell from 6.7 percent yearly to 6.5 percent; and the 11-month rate fell from 6.8 percent yearly to 6.7 percent.
According to the banks, as the competition for lending among banks is now fierce, a further reduction in deposit interest rates is intended to cut costs for more attractive lending rates.
Data from the central bank revealed that deposits rose 3.09 percent by April 20, while credit growth was only 0.62 percent, much lower than 2.11 percent of the same period last year.
In the interbank market, interest rates have also continued to slide for short-term deposits. The overnight rate on May 6 stood at 1.65 percent yearly, down to 0.15 percentage points against last week. One-week term rate also declined 0.15 percentage points to 1.9 percent yearly. The declining rate for two-week terms was 0.3 percentage points.
Industry insiders forecast that interest rates will continually reduce soon as there are no optimistic signs for the abundant deposits at banks.-VNA
