Banks follow SBV lead by cooling deposit interest rates

By Tri Duc
Tue, March 28, 2023 | 11:12 am GMT+7

The State Bank of Vietnam in mid March cut several policy interest rates for the first time in two years, and many domestic banks have followed suit, but not to the extent of foreign banks.

Many Vietnamese banks reduced their deposit interest rates in late March. Photo courtesy of the Vietnam News Agency.

Many Vietnamese banks reduced their deposit interest rates in late March. Photo courtesy of the Vietnam News Agency.

On March 14, the central bank announced a one percentage point reduction on several policy interest rates, starting March 15. The annual rediscount rate fell from 4.5% to 3.5%, while the overnight electronic interbank rate and interest rate for loans to offset capital shortfalls in clearance between the central bank and domestic banks droped from 7% to 6%.

As a result, many domestic banks have cut their deposit interest rates from 0.1 to 0.7 percentage points, including private lenders VPBank, VIB, Sacombank, SHB, HDBank, and Viet Capital Bank.

The highest interest rate of 9.3% is available for 13-month and 36-month terms at OCB. A rate of 9.2% is available for 36-month terms at ABBank, 13-month and 36-month terms at Bac A Bank, and 13-month terms at HDBank.

However, for VietinBank, Vietcombank, BIDV, and Agribank - all state-controlled banks, deposit interest rates have fallen to 7.2% for terms between 12 and 36 months. The figure stands at 5.8% for six-month terms.

The majority of foreign banks in Vietnam have set their deposit interest rates even lower.

Starting Monday, at HSBC Vietnam, the interest rates are 0.1% for terms between seven and 21 days; 1% for one-month and two-month terms; 2.25% for three-month terms; 2.75% for terms between six and nine months; and 3.75% for terms of 12, 18, 24, and 36 months. For premier customers, the highest rate is 5% for 12-months terms, while other rates are slightly higher.

The figures at South Korea-backed Shinhan Bank Vietnam remain unchanged from end-2022. Shinhan Bank Vietnam offers rates at 3.9-6.8%.

For two-month terms, the figures are between 3.9% and 4.9% for online or offline deposits. Similarly, the rates are between 4.4% and 5.5% for three-month terms, 5.4% and 6% for six-month terms, 6% and 6.8% for 12-month terms, 5.4% and 6.4% for 18-month terms, 5.4% and 6.2% for 24-month terms, and 5.3% and 6% for terms between 36 and 60 months.

Standard Chartered Bank Vietnam offers a promotional rate of 5% for 12-month terms. Besides, the rates are 1.5%, 2%, and 2.5% for one-month, two-month, and three-month terms, respectively. Six-month and nine-month terms are subject to interest rates of 3.9% and 4.05%, respectively. The figures are between 4.5% and 4.9% for terms between 17 and 36 months.

The figures at Singapore-invested United Overseas Bank (UOB) Vietnam are in the range of 5.5% and 7.5%, slightly lower than those last month. Terms of six, nine, 12, 13, and 18 months have interest rates of 6.5-7.5%. One, two, three, and four-month terms are subject to interest rates of 5.5-5.8%.

Malaysia-backed Hong Leong Bank Vietnam has reduced its rates to 5.5-5.7% for terms between one and three months, and 7% for terms between nine and 36 months. For priority customers, the rates are higher at 6% for terms between one and three months, and between 8.1% and 8.25% for terms between six and 13 months.

Public Bank Vietnam, also a Malaysian creditor, has set rates between 5.8% and 8.8% for terms between one and 60 months for basic customers. An addition of 0.2 percentage points is available for prioritized customers for terms between six and 60 months.

South Korean-invested Woori Bank Vietnam is offering deposit rates between 5% and 7% for different terms. The lender is also offering a promotion of up to four percentage points to 11% in total.

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