Major banks continue to reduce deposit interest rates

Illustrative image (Source: VNA)

Hanoi (VNA) – Deposit interest rates at four major banks of Vietnam have been adjusted sharply, down by 0.2-0.4% per year from the previous listings, bringing the rate to 2.2% per year at the lowest.

Specifically, the Bank for Investment and Development of Vietnam (BIDV), the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and the Vietnam Bank for Agriculture and Rural Development (Agribank) on December 13 lowered their interest rates for 12-month savings to 5% per year from 5.3% per year.

Notably, annual deposit interest rates for terms from one to less than three months decreased sharply from 3% to 2.6%. The respective interest rates for three-month term and 6-9-month term are cut to 3% and 4%.

The highest deposit interest rate at the three banks is currently 5.3% per year, which is only applicable to deposits from 24 months upward.

Meanwhile, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has also cut deposit interest rates by 0.2%, pushing the deposit interest rate for 1-2-month terms to a record low of 2.2%. The bank’s 3-month term interest rate now stands at 2.5% per year, while the rate for 6-9 month-term deposits, is 3.5% per year. That for deposits 12 months and more is kept unchanged at 4.8% per year.

Since the beginning of December, many banks such as MB, PVCombank, HDBank, Techcombank, MSB and VPBank have continuously cut their interest rates, with the current interest rates being as low as the four major banks.

VNDirect Securities estimated that the average 12-month term deposit interest rate may return to 5-5.2% per year year by the end of 2023 and maintain at this low level in 2024./.

VNA