Savings interest rates continue to fall
Four months ago, customers who deposited savings for 1 month to less than 6 months could enjoy interest rates of up to 5.5%, now they only get paid 3.95 - 4.75%.
Banks have simultaneously lowered interest rates on deposits with terms of less than 6 months after the State Bank imposed a ceiling of 4.75% on deposits with terms of less than 6 months and 0.5% on savings with terms of less than 1 month.
After two reductions in operating interest rates and deposit interest rate ceilings in November 2019 and most recently on March 17, short-term deposit interest rates from 1 month to less than 6 months have decreased by 0.75 - 1%. Currently, with savings of less than 6 months, customers can receive interest rates of 3.95 - 4.75%.
In early November last year, many banks listed 3-5 month savings interest rates at 5.5%. However, by mid-November 2019 - after the State Bank lowered the operating interest rate and the ceiling interest rate for savings under 6 months from 5.5% to 5%, the short-term savings interest rate dropped to 4.1 - 5%. By early March, in the interest rate reduction period for many terms, many banks reduced 0.05 - 0.2 percentage points for terms under 6 months.
And after the strong move from the regulator on March 16, banks continued to lower savings interest rates from 1 month to less than 6 months to 3.95 - 4.75%.
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| Customers deposit money at a commercial bank.Photo: Anh Tu |
Not only joint stock commercial banks, private banks are similar. VIB reduced by 0.5 percentage points compared to the old interest rate table, bringing the interest rate for terms of 1 month to less than 6 months to 4.5%. Compared to less than half a year ago, customers depositing money at VIB for terms of 2-5 months received 5.5% interest, now they only receive 4.5%.
Not only interest rates under 6 months, but also the general interest rate level has a downward trend. Since the end of February, many banks have reduced deposit interest rates by 0.1 - 0.4 percentage points for long-term terms of 6 months or more. This is in line with the State Bank's direction to reduce interest rates to support production and business in the face of the severe impact of the trade war and especially the Covid-19 pandemic.
