Deposit interest rates continue to decrease

By VNA   February 22, 2023 | 11:40 pm PT
Deposit interest rates continue to decrease
A cash transaction is pictured at a bank in Hanoi. Photo by VnExpress/Giang Huy
Commercial joint stock banks have continued to lower deposit interest rates since the middle of this month, a move that is expected to help reduce lending rates and support businesses.

From Feb. 14, GPBank lowered its saving interest rates by 0.4% points. The six-month term and 12-month term rates now stand at 8.9 and 9.1% per year, down from 9.3 and 9.5% per year, respectively.

From Feb. 18, Techcombank also cut saving rates for VIP customers by 0.5% points for both terms of 12 months and 24 months to 8.7% per year. It also cut the saving rate for six-month term deposits by 0.3% points to 8.7% per year.

From Feb. 14, Sacombank decreased saving rates for six-month, 12-month and 24-month terms, bringing the six-month rate down to 8.2% per year, the 12-month rate to 8.6% per year and the 24-month rate to 8.8% per year.

On the contrary, from Feb. 14, Sai Gon Hanoi Commerical Joint Stock Bank (SHB) slightly increased deposit interest rates. For online deposits, the interest rate increased to 8.42% per year from 8.12% per year. For the 24-month term, the deposit interest rate increased to 8.82% per year from 8.52% per year.

The highest deposit rate on the market is now 9.5% per year (the six-month term at Sai Gon Commerical Joint Stock Bank (SCB) and PVcombank).

Meanwhile, the 9.5% deposit interest rate is also applied for 12-month and 24-month terms at Bao Viet Bank, SCB, PVcombank, Dong A Bank, Viet A Bank, MSB, and Bac A Bank.

At a recent meeting among the State Bank of Vietnam (SBV), commercial banks and property developers, a bank leader said the ceiling deposit rate would be brought down to 8.7% per year in the coming time instead of the current 9.5% per year.

The fact that commercial banks have continued to lower deposit interest rates since early this month and cut further last week has raised hope of a drop in lending rates.

Over the past week, banks such as Agribank, Techcombank, VietinBank, Sacombank, MB and SeABank have lowered lending interest rate by 1-3% per year.

Agribank has announced a maximum lending interest rate reduction of 3% per year for outstanding loans for real estate as of Jan. 31, 2023.

Economist Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, said deposit interest rates are still too high.

Recently, the Vietnam Banks Association called on commercial banks to keep deposit interest rates at 9.5% or below to reduce lending interest rates.

SBV Governor Nguyen Thi Hong has constantly called on banks to cut operating costs and improve administrative procedures so as to reduce lending interest rates.

Experts said the global economy is likely to have a recession this year. At the same time, the U.S. Federal Reserve will continue its rate hikes, which will put pressure on interest rates to continue rising.

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