Vietnam's Big 4 banks cut deposit interest rates to below 2%

Deposit interest rates at four state-controlled banks in Vietnam, namely Vietcombank, Agribank, BIDV and VietinBank, have dropped to below 2% for some terms as the banking sector continues to cut interest rates.

Deposit interest rates at four state-controlled banks in Vietnam, namely Vietcombank, Agribank, BIDV and VietinBank, have dropped to below 2% for some terms as the banking sector continues to cut interest rates.

Banks in Vietnam have cut interest rates to below 2% for some terms. Photo by The Investor/Trong Hieu.

Vietcombank is offering the lowest deposit rate of 1.7% for one-month and two-month terms, down 0.2 percentage points versus end-2023. The figures for three-month, six-month and nine-month terms have fallen 0.2 percentage points to 2%, 3%, and 3%, respectively. Terms between 12 and 60 months are subject to a 4.7% interest rate.

At wholly state-run Agribank, the rate has been cut to 1.8% for terms under three months, down 0.2 percentage points from end-2023. The interest rates for terms between three and five months have fallen by 0.4 percentage points to 2.1%. Terms between six and 11 months are subject to a 3.2% rate, down 0.3 percentage points. The rate for terms between 12 and 18 months is 5%, and 5.3% for 24-month terms.

VietinBank, after two waves of cutting interest rates so far this year, is offering 1.9% for under-three-month terms, 2.2% for terms between three and six months, and 3.2% for terms between seven and 11 months. The rates are 5% for 12-month terms and 5.3% for 24-month terms.

For BIDV, the highest interest rates are 5.3% for 24-month and 36-month terms, and 5% for terms between 12 and 18 months. Terms of one and two months are given 1.9% interest rates, three and five-month terms 2.2%, and six and nine-month terms 3.2%.

Outside the abovementioned banks, also known as the “Big 4” lenders, other banks have cut their deposit interest rates.

At Techcombank, a major private lender, the interest rates have fallen 0.65 percentage points for terms under 12 months, such as 2.55% for one and two-month terms, 2.95% for three and five-month terms, 3.65% for six and eight-month terms, and 3.7% for nine and 12-month terms. Meanwhile, the figures for terms beyond 12 months have increased by 0.05 percentage points to 4.75%.