Bank deposit interest rates continue to fall

By Quynh Trang   May 16, 2023 | 09:13 pm PT
Bank deposit interest rates continue to fall
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
Many banks have cut deposit interest rates this month, bringing the average rate to below 9.

The rate is half a percentage point lower than at the start of this year for terms of less than six months, and one point lower for longer tenors.

Some banks offered nearly 10% earlier this year.

As of May 15 more than half the banks offered rates of up to 7-8%, and the rest, slightly higher.

After a period of rapid growth at the end of 2022, deposit interest rates began to plateau at the beginning of this year as liquidity became abundant, even excessive, according to analysts, especially compared to the end of October last year when a run occurred on Saigon Commercial Bank (SCB).

Besides, lending by banks has eased off, meaning funds mobilization is not an urgent need for them.

Deposits of less than six months carry a maximum interest rate of 5.5%.

Banks that offer the highest rates, ranging from 8.5% to 8.9%, include SeABank, ABBank, VietABank, HDBank, and VietBank.

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