Banks further cut deposit interest rates

By Dat Nguyen   February 11, 2021 | 09:00 pm PT
Banks further cut deposit interest rates
A bank staff hands over cash to a customer at a bank in Hanoi. Photo by VnExpress/Giang Huy.
Many banks have cut deposit interest rates marginally, continuing a trend that began last year as the Covid-19 pandemic hurt businesses.

State-owned Vietcombank cut its 12-month rate by 0.1 percentage point to 5.5 percent.

Private lenders Techcombank and ACB also cut their rates by 0.1 percentage point to 4.6-5.5 percent and 5.5-5.7 percent.

Others such as SHB, ABBAnk, BacABank, and Oceanbank lowered their rates for deposits of six months and more.

The interest rates were around 7 percent early last year, but the economic slump slowed down credit growth, forcing banks to lower deposit interest rates.

Analysts at leading brokerage SSI Securities Corporation said the latest outbreak could further weaken demand for credit and keep deposit interests low.

Further cuts are likely if the pandemic situation worsens, they warned.

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