Banks across the board cut deposit interest rates

By Quynh Trang   May 28, 2023 | 07:39 pm PT
Over 20 banks have cut deposit interest rates, and the highest has fallen from 9% to 8.5%.

The average reduction has been 0.5 percentage points for deposits of less than six months after the State Bank of Vietnam lowered its policy rates last week for a second time this year.

For terms of six months and above lenders have reduced the rates by 0.2-0.3 percentage points compared to two weeks ago.

The four state-owned lenders, Vietcombank, Agribank, BIDV and VietinBank, reduced them by 0.4 percentage points.

Their highest interest rate is now 7%.

Private lenders such as GPBank, SeABank and ABBank have reduced their rates to 8.2-8.5%.

With inflation shows signs of cooling down, the SBV on May 25 reduced its interest rate ceiling on deposits of under six months from 5.5% to 5%.

The reduction in deposit interest rates will enable banks to cut loan interest rates, which in turn would boost economic recovery.

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