Banks reduce deposit interest rates

In the past few days, a number of major banks have adjusted their deposit interest rates down for various terms after the market had a slight increase earlier.

The latest deposit interest rate table was announced by Vietnam Prosperity Bank - VPBank on September 22. In particular, new customers depositing for 13 and 15 months will only receive an interest rate of 6.8% instead of the previous 7%. For 36-month deposits, with amounts over VND10 billion, the bank still maintains an interest rate of 7% per year. This is also the highest interest rate of the bank.

Banks are preparing to reduce deposit interest rates to restructure mobilized capital. Photo:HH.

Not only joint-stock banks, some state-owned banks such as Vietcombank also apply new interest rates for VND deposits, notably the 3-month term has decreased by 0.3%, from 5.1% to 4.8%. The 6-month term has also been adjusted down to 5.3% per year (previously 5.4%). Currently, the highest interest rate of this bank is 6.5% for the 12-36 month term.

The State Bank said that from today (September 26), a number of credit institutions (both joint stock and state-owned) have also adjusted their deposit interest rates down for terms of less than one year by 0.3-0.5% per year. Accordingly, the interest rates applied to non-term deposits and deposits of less than one month are announced at around 0.3-0.5% per year. Terms from one month to less than three months are at 4.2-4.3% per year, terms from nine months to less than 12 months are at 5.5% per year...

The deputy general director of a joint stock bank said that the above move is mainly to restructure the bank's mobilized capital in a more reasonable way. In addition, this interest rate reduction is considered a way to help banks reduce lending interest rates to businesses.

The State Bank also assessed that the move to reduce deposit interest rates by banks is a positive solution, which has been specified by the Governor for the banking industry in Directive No. 04 on cost reduction to cut lending interest rates, thereby supporting production and business activities of enterprises and the economy.

Since the beginning of the year, the State Bank has affirmed that it has closely followed the market, flexibly operated monetary policy, supported the system's liquidity, and created conditions to keep interbank interest rates at a low level. Through that, the operator has created conditions to stabilize the mobilization interest rate and reduce pressure on lending interest rates of credit institutions, while ensuring the goals of stabilizing exchange rates and increasing the State's foreign exchange reserves.

According to VNE