COVID-19 pushes banks to lower deposit rates
Hanoi (VNS/VNA) - Many banks have cut their deposit interest rates
significantly this month due to a credit growth slowdown in the wake of the
pandemic.
Private banks such as VPBank, MBBank, ACB and Viet Capital Bank have
reduced their interest rates by 0.2-0.7 percentage points per year.
VP Bank has lowered its interest rate on savings accounts by 0.2-0.7 percentage
points for many terms, with six-month deposits standing at 6.6 percent a year
and 6.7-7.2 percent a year for 12-month deposits.
For the bank’s online deposits, the interest rate has also dropped by 0.35
percent to 6.9-7.2 percent per year for 18-36-month term deposits.
MBBank has also announced a new deposit interest rate list this month,
down 0.1-0.5 percentage points from the previous rate.
For six-month term deposits, the interest rate at the counter has
decreased by 0.4 percentage points to 6 percent per year while the rate for
13-month deposits has been lowered by 0.1 percentage points to 6.6 percent.
ACB
has lowered its interest rate on savings accounts for almost all terms by
0.25-0.55 percentage points per year, with 12-month deposits staying at only
6.7-7 percent per year, depending on the total of deposits.
State-owned banks have also dropped their deposit interest rates.
Vietcombank has lowered its deposit interest rates by 0.2-0.3 percentage points
for periods of six months or more. An individual account will now get a 6.6 percent
interest rate per year for a 12-month deposit instead of 6.8 percent.
Vietinbank has cut its interest rates by 0.2 percentage points to 6.6 percent
for terms of six to less than 12 months, keeping the rate for a 12-month fixed
deposit unchanged at 6.8 percent.
BIDV has cut its rates by 0.05-0.2 percentage points for most periods, except
for 12-month deposits which is still 6.8 percent.
Previously, banks cut short-term deposit rates after the central bank in March
reduced the cap on interest rates on VND deposits of one to six months
from 5 percent to 4.75 percent.
The cut came as the country’s bank credit growth in the first quarter of this
year was only 1.1 percent, slowing significantly against the 2.28 percent rate
in the same period last year, with many firms scaling down their business due
to the adverse impacts of the COVID-19 pandemic.
Experts said decreasing credit demand meant banks had high liquidity
and therefore don’t need to mobilise more cash.
However, they said, if the pandemic worsens, more companies would need
credit to save their businesses and at that time deposit interest rates could
rise./.