Banks have lowered savings interest rates to below 9% per year.
Following the State Bank of Vietnam's reduction of the policy interest rate on March 15th, a new, lower deposit interest rate level has emerged among commercial banks.
Besides the Big4 banks (Agribank, Vietcombank, Vietinbank, and BIDV), many other joint-stock commercial banks have also reduced deposit interest rates, including VietBank, KienLongBank, VPBank, VietA Bank, NCB, VietCapital Bank, SHB, TPBank, SCB, HDBank, etc., with some banks reducing deposit interest rates for the second time in the past 10 days.
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Illustrative image. Source: Internet. |
As of March 20th, the highest online savings interest rate for a 6-month term belongs to KienLongBank (8.95%), while ABBank and VietBank rank second with 8.9%/year.
This marks the second consecutive interest rate reduction by VietBank in just over a week, from the market's highest rate of 9.5% per year.
ABBank currently offers the highest online savings interest rate for a 12-month term at 9.1% per year. This bank also leads the market for terms longer than 12 months, at 9.2% per year.
KienLongBank also reduced interest rates for term deposits from 9.15% to 8.9% per year. Interest rates for terms of 9 months or more were also reduced by 0.2-0.4% per year.
Online savings interest rates at VPBank also decreased sharply by 0.6%, from 8.8% to 8.2% per year for terms of 6-11 months, while the 12-month term saw a significant drop from 9.2% to 8.4% per year; and interest rates for terms over 12 months are now only 7.2% per year.
SCB Bank also sharply reduced interest rates for 6-month terms from 9%/year to 8.56%/year, and for 9-month terms from 8.9%/year to 8.43%/year.
VietCapital Bank sharply reduced interest rates for 6-month deposits from 8.6% to 7.9% per year, and for 12-month deposits from 9% to 8.5% per year.
At SHB, interest rates for 6-9 month terms decreased from 8.42% to 8% per year, and for 12-month terms or longer, they decreased from 8.5% to 8.82% per year.
However, Nam A Bank is the only bank that increased online savings interest rates for 1-3 month terms from 5.75% to 6% per year. Interest rates for other terms remain unchanged, with the highest rate being for terms of 12 months or more at 8.9% per year.
Meanwhile, savings interest rates at GPBank, OCB, MSB, PVCombank, VIB, Sacombank, Eximbank, CB, and ABBank remain unchanged.
According to the latest decision of the State Bank of Vietnam, effective March 15, 2023, the rediscount rate will decrease from 4.5%/year to 3.5%/year; the overnight lending rate for interbank electronic payments and the lending rate to compensate for capital shortages in clearing payments by the State Bank of Vietnam to credit institutions will decrease from 7.0%/year to 6.0%/year. The refinancing rate, however, will remain unchanged at 6%/year.
According to Deputy Governor Pham Tien Dung, the State Bank of Vietnam recently issued a decision to lower the policy interest rate by 1% and the overnight lending rate by 1%. This is a fairly positive signal for the market. Through this interest rate reduction, many banks have lowered deposit interest rates and have a basis to lower lending interest rates, creating good momentum for the development of production and business.
Following the directives of the Prime Minister and the State Bank of Vietnam, the banking sector will strive to best meet the demand for banking capital for economic development activities. Adhering closely to the resolutions of the National Assembly and the directives of the Government and the Prime Minister, the State Bank of Vietnam will manage monetary policy and banking operations in a firm, proactive, flexible, and effective manner, coordinating harmoniously, rationally, and closely with fiscal policy and other macroeconomic policies to contribute to controlling inflation, stabilizing the macroeconomy and the money market, and striving to reduce lending interest rates for businesses and individuals to support economic growth recovery.
