Deposit interest rates anchored at low levels
Going against the usual rule of gradual increases in the last months of a year, deposit interest rates in most banks are anchored at low levels, and even some continue to decrease.
On the first day of October, deposit interest rates at some banks such as Vietnam Prosperity Joint Stock Commercial Bank (VPBank), Asia Commercial Joint Stock Bank (ACB), Bac A Commercial Joint Stock Bank (Bac A Bank) continued to be cut by 0.15 - 0.3% for various terms.
The highest rate at VPBank dropped to only 5.5% per year for 12-month and 13-month terms from the previous 5.8%. Those for terms from 6-9 months decreased from 5.3% to 5.1% a year. This interest rate is also applied for long terms of 15, 18, 24 and 36 months.
At ACB, the interest rate for deposits under VND200 million (US$8,205), with 6-9 month terms, has been cut from 5-2-5.3% to 5-5.1% a year. The bank has kept the 12-month term interest rate unchanged at 5.5% a year.
Meanwhile, the highest deposit interest rate at Bac A Bank decreased from 6.4% to 6.25% a year applicable to deposits of over VND1 billion for 18 months or more.
Earlier, the Big 4, including 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) and the Vietnam Bank for Agriculture and Rural Development (Agribank), lowered their deposit interest rates to the lowest levels recorded during the COVID-19 pandemic.
The highest interest rate at these banks is only 5.5% a year, applicable for terms of 12 months or more.
At the same time last year, the interest rate of 8% a year was quite popular, applicable to terms of 6 months or more.
