25-6-2023 (HANOI) State-owned banks, including Vietcombank, VietinBank, BIDV, and Agribank, have simultaneously reduced their deposit interest rates by 0.5% to 1% across all terms.
The highest interest rate for deposits in the “Big 4” group, both at branches and online, is now only 6.3% for terms of 12 months or longer. This represents a decrease of 0.5-0.7% compared to May.
For shorter-term deposits, customers now receive only 3.4% for one-month deposits at branches and approximately 4% for online transactions. The interest rate for three-month deposits ranges from 4.1% to 4.5% per year. Meanwhile, the interest rates for six or nine-month deposits are set at 5-5.5% per year.
VietinBank, a state-owned bank, has implemented the most significant reduction, up to 1%, especially for deposits of nine months or less. The preferential interest rates for online deposits at this bank are no longer as advantageous as those at the branches.
As for private banks, their deposit interest rates have also been adjusted, decreasing by 0.1% to 1%, with the most substantial reduction occurring for terms of six months or less. The highest publicly announced interest rates at some major private banks are now hovering around 7% per year, such as ACB, VIB, TPBank, Sacombank, and VPBank (for deposits under 1 billion Vietnamese dong).
This interest rate adjustment follows the State Bank of Vietnam’s decision to lower the deposit interest rate ceiling for terms under six months and a benchmark interest rate on June 16. It is the second time in less than a month and the third time this year that the State Bank has reduced the deposit interest rate ceiling to below 6%, down to 4.75% per year.
The reduction of the deposit interest rate ceiling and benchmark rate, according to the State Bank of Vietnam, is a “significant step and direction for the downward trend of market interest rates in the coming period.” It signals a direction for banks to lower lending rates. This decision is in line with the orientation of the National Assembly and the guidance of the Government to reduce interest rate levels, support individuals and businesses in accessing capital, and contribute to the recovery of production and business activities.
As of the end of May, credit growth in the economy remained sluggish, reaching just over 12.3 quadrillion Vietnamese dong, an increase of about 3.2% compared to the end of 2022. State-owned commercial banks accounted for about 44% of the credit market share, with growth of only 35% compared to the State Bank’s target. Meanwhile, joint-stock commercial banks have only achieved half of their assigned “room.”
