Commercial banks reduce deposit interest rates by 0.2-0.5 percentage points

Commercial banks have agreed to reduce their deposit interest rates by 0.2-0.5 percentage points from Monday, the State Bank of Vietnam said in a statement.

Specifically, four state-controlled or state-run commercial banks, namely Vietcombank, VietinBank, BIDV, and Agribank, also known as the “Big Four” banks in Vietnam, cut their rates by 0.2 percentage points for terms between six and 12 months, while other commercial banks decreased their figures by 0.5 percentage points.

The lower deposit interest rates are expected to help banks narrow costs and then loan interest rates to help businesses and the economy. Lending rates at 22 commercial banks had already eased by 0.43 percentage points on average from end-2022 to end-February 2023, the central bank added.

Vietcombank announced its latest deposit interest rates at 7.2% for terms between one and five years and between 4.9% and 5.8% for terms between one and nine months.

Similarly, VietinBank has applied the same figures for terms from one to three years, and between 4.9% and 5.8% for terms from one to below 12 months.

BIDV is offering deposit interest rates of 7.2% for terms between 13 and 36 months, 7.4% for 12-month terms, and between 4.9% and 5.9% for terms between one and nine months.

Agribank has set deposit interest rates at 7.2% for terms between 13 and 24 months, 7.4% for 12-month terms, and between 4.9% and 5.8% for terms between one and nine months.

The figures at private banks are higher than the “Big Four” banks, such as Bac A Bank giving a rate of 9% for terms between 13 and 36 months.

Saigon Commercial Bank (SCB) has the highest interest rate of 9.5% for 12-month terms and 9.1% for terms between 15 and 36 months.

Loan interest rates are between 10% and 12% for manufacturing businesses, while the figures for consumption loans are 14-16%, top securities broker SSI said in its February report.