Banks continue lower deposit interest rates

The deposit interest rates at major banks has continued to decrease since the beginning week of September.

With its adjustment from 5.6% to 5.5% annually for 12-36 month-term savings, the Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Bank for Agriculture and Rural Development (Agribank) are maintaining the lowest rates in the banking sector, like the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank).

Meanwhile, the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) keep its deposit interest rate at 5.6% for savings from 12 months. Interest rates for savings with terms from 1-3 months are varied from 3.1-3.4% per annum, while the rate for 6-9-month savings is 4% per year.

Reductions between 0.2-0.4% has been seen in deposit interest rates for different saving terms in joint stock commercial banks.

Statistics from the State Bank of Vietnam showed that the interest rates have been at the lowest level in many years.

However, some banks have still kept deposit interest rates at over 7% per annum for large savings, including the Asia Commercial Bank (7-7.3%), Techcombank (7.1%), and MSB (7%).

Economist Nguyen Tri Hieu held that in order to help businesses overcome COVID-19 impacts, it is necessary to set up credit complex in association with a Credit Guarantee Fund with a total loan limit of VND300 trillion with the engagement of banks at a participation rate of about 3% of each bank's outstanding loans.