While Vietnamese commercial banks reduced their deposit interest rates to below 8% recently, the rates were already lower at foreign counterparts in the country at below 7%.
Malaysia’s Public Bank Vietnam has been the sole exception, giving 8% for 18-month deposits.
The interest rate cuts at domestic banks followed a call from Prime Minister Pham Minh Chinh. At a working session last Thursday with the Vietnam Association of Small and Medium Enterprises, the PM asked the banking sector to implement a more eased and flexible monetary policy by raising money supply; reducing the interest rates, iincluding those on loans; and improving businesses’ access to credit.
The prime minister acknowledged the banking sector has reduced the interest rates. For instance, the State Bank of Vietnam (SBV) cut its refinance and discount rates by 50 basis points from June 19, the fourth policy rate adjustment this year.
Public Bank Vietnam offers deposit interest rates from 4.6% to 8%, the highest rate for 18-month deposits and the lowest one for one-month and three-month deposits.
The rate is 4.75% for four- and five-month deposits. Deposits of nine to 11 months fetch 7% for terms between nine and 11 months, 7.3% for terms of 24-36 months, and 7.4% for terms between 12 and 17 months.
At Singapore-invested United Overseas Bank (UOB) Vietnam, the rates fell to between 2% and 6% starting July 3. Deposits with terms of one to four months carry interest rates of 2-2.3%; while terms of six months, nine months, and 12 months get 5%, 5%, and 6%, respectively.
At Malaysia-invested Hong Leong Bank Vietnam, the interest rate is 4.25% and 4.45% for one-month and three-month deposits, respectively. The rate rises to 5.6% for terms of nine to 36 months, while six-month deposits get the highest interest rate of 6%. For priority customers, the rates are between 0.2 and 0.5 percentage points higher.
Thailand's Kasikornbank (KBank) gives its highest interest rate of 6% for terms of 12 months or more, 5.5% for six months, 3.5% for three months, and 2.5% for one month.
South Korea-invested Shinhan Bank Vietnam offers rates at 3.6% and 6% for deposits of one month and six months, respectively. For terms of 18 months or more, the rate is 5.5%. The interest rates on online deposits are higher by between 0.3 and 0.7 percentage points.
HSBC and Standard Chartered Vietnam offer the lowest deposit interest rates. HSBC’s rates are 1% for one-month and two-month terms, 2.25% for three-month terms, 2.75% for six-month and nine-month terms, and 3.75% for 12-month, 18-month, 24-month, and 36-month terms.
At Standard Chartered Vietnam, the rates are 1.5%, 2%, 2.5%, 3% and 4% for deposits of one, two, three, six and 24 months, respectively. The rates are 0.2-0.3 percentage points higher for priority banking customers.
As reported earlier, interest rates on 12-month deposits fell below 8% at all Vietnamese commercial banks following the PM’s call. Starting last Friday, the highest interest rates on 12-month deposits are 7.8% at Bac A Bank and 7.75% at GPBank. The corresponding rate is 7.7% at PVCombank, Bao Viet Bank, Nam A Bank, and VietBank.
The lowest rate on 12-month deposits is 6.3% at state-controlled Agribank, VietinBank, BIDV and Vietcombank, also known as the “Big 4” lenders that account for more than half the credit in the economy.