Deposit interest rates fall to 6%

By Quynh Trang   November 7, 2023 | 01:03 am PT
Around 20 banks have lowered their deposit interest rates to 6% a year as they have abundant cash resources amid difficulties in providing loans.

PVCombank now offers 6.2% on 12-month loans under VND1 billion (US$41,200), while VietABank offers 6%.

The rates at HDBank are 5.9%, SeABank is 5.8%, and BacABank offers 5.7%. VietinBank and BIDV both offer 5.3%, and Vietcombank 5.1%.

Deposit interest rates have been falling since April as banks struggled to find borrowers amid economic challenges. Relaxed monetary policies helped banks have high cash resources.

Deposit rates are now half of the 11-12% rate offered at the end of last year.

The average deposit interest rate range in 2017-2018 period was around 8.86-8.91% a year.

In lending, banks now ask for a 7-10% fixed rate and 11-14% floating rate.

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