Banks cut interest rates by one percentage point

By Quynh Trang   June 25, 2023 | 03:22 pm PT
Banks cut interest rates by one percentage point
The logo of Vietcombank is seen at an ATM in downtown Hanoi. Photo by Shutterstock/Asia Images
Vietnam's four biggest banks, Vietcombank, VietinBank, BIDV and Agribank, reduced deposit interest rates by 0.5 -1 percentage points last week.

The highest interest rate at the four state-owned banks is 6.3%, applied for a deposit term of 12 months or more. The rate has decreased by 0.5-0.7 percentage points since May.

The rate for one-month deposits is 3.4-4% per year. The three-month deposit interest rate is 4.1-4.5%, and the interest rate for six- or nine-month deposits is 5-5.5%.

Private banks also lowered deposit interest rates by 0.1-1 percentage point, with the sharpest decrease for deposit terms of six months or less.

The highest listed interest rates at large private banks, including ACB, VIB, TPBank, Sacombank and VPBank, are currently around 7% a year.

Commercial banks lowered deposit interest rates after the State Bank of Vietnam slashed the ceiling interest rate for deposits under six months and the policy rate on June 16.

It was the second time in less than a month and the third time this year that the central bank has reduced the ceiling on interest rates for deposits of less than six months, to 4.75% a year.

By the end of May, the economy’s credit was still gloomy, standing at VND12,300 trillion (US$521.2 billion), up 3.2% from the end of 2022, with many commercial banks reporting slow credit growth.

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