‘Big Four’ slash deposit interest rates to lowest in banking system
The four biggest banks in Vietnam have strongly cut interest rates for various deposit terms to the lowest levels of the year.
From August 23, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) reduced their highest deposit interest rates, applicable to deposit accounts of at least 12 months, to 5.8% per year from 6.3% per year.
The rates for one- and three-month deposits were brought down by 0.3% per year to 3% and 3.8% per year, respectively, and that for six-month accounts to 4.7% per year.
At the Vietnam Bank for Agriculture and Rural Development (Agribank), deposit interest rates for different terms decreased by 0.3 - 0.5% per year. The highest rate, 5.8% per year, is only for 12-month deposits.
The rate for deposits of 13 months and over now stands at 5.5% per year. Meanwhile, the rates for one-, three-, and six-month savings accounts are similar to those of the three above-mentioned banks.
Deposit interest rates at the “Big Four” are now the lowest in the banking system.
Some other banks such as Eximbank, VIB, MB and ACB have also strongly cut the rates.
Compared to the peak of 9 - 10% per year at the start of 2023, deposit interest rates have fallen sharply after four regulatory interest rate adjustments by the State Bank of Vietnam (SBV).
The SBV’s adjustments aim to create conditions for commercial banks to further slash lending interest rates to support the economy.
Earlier, it had asked credit institutions and branches of foreign banks in Vietnam to continue reducing lending rates for existing and new loans, by at least 1.5 - 2% per year, as ordered by the Government and the Prime Minister to help enterprises and people recover and develop production and business activities.
