Savings interest rates have been lowered again.
The State Bank of Vietnam has just implemented its fourth interest rate cut this year, including lowering the ceiling interest rate for short-term deposits to 4% per annum.
Accordingly, from October 1st,interest rateThe maximum interest rate applicable to VND time deposits with maturities from 1 month to 6 months has been reduced from 4.25% to 4% per year. Demand deposits or deposits with maturities of less than 1 month have a maximum interest rate of 0.2% per year.
Interest rates on deposits with terms of 6 months or more are still determined by banks based on market supply and demand for capital.
Interest rates for similar terms atPeople's Credit FundMicrofinance institutions reduced their interest rates from 4.75% to 4.5% per year.
The State Bank of Vietnam has adjusted short-term lending interest rates for credit institutions to meet capital needs in certain economic sectors and industries, reducing them from 5% to 4.5% per year. Interest rates for similar capital needs at people's credit funds and microfinance institutions have also decreased from 6% to 5.5% per year.
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| Transactions at a bank in Vinh City. Photo by Viet Phuong. |
The refinancing, rediscounting, overnight lending rates in interbank electronic payments, and lending rates to cover capital shortfalls in clearing payments by the State Bank of Vietnam to banks also decreased by 0.5% per year.
This is the fourth time this year that the State Bank of Vietnam has reduced key interest rates. The previous reductions occurred in March, May, and August, respectively.and is expected by experts to have a positive impact on the economy, setting the stage forbanks that support businessesExtending and restructuring loan debts. Regarding the ceiling interest rate for VND deposits, this is the third reduction this year.
According to the General Statistics Office, as of September 22nd, credit growth reached 5.21% due to the negative impact of the pandemic on the credit system.
