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.
The four biggest banks in Vietnam have strongly cut interest rates for various deposit terms to the lowest levels of the year.
Commercial banks have persistently reduced deposit interest rates, resulting in rates for many terms now standing at just above 6% per annum.
Inactive cash showed signs of shifting to securities as banks continue to reduce deposit interest rates to below 8% per year, expanding the liquidity of the stock market.
The latest deposit interest rates at the four major banks have simultaneously decreased to the lowest level in one year.
Though deposit interest rates listed at commercial banks have decreased rapidly after the State Bank of Vietnam's (SBV) policy rate cut, savings of individual customers have kept rising.
Banks will have to exercise caution to ensure stable liquidity when trillions of Vietnamese dong in savings deposits reach their maturity dates over the next few months, according to experts.
Banks have been steadily cutting deposit interest rates, which have reached around 8%, a move aimed at reducing lending rates to support businesses.
The State Bank of Vietnam (SBV) has recently granted the first credit growth quotas in 2023 to a number of banks, with a majority of them receiving lower rates than last year.
The race of interest rate hikes among commercial banks is showing signs of cooling down as many banks have adjusted down the rate by several percentage points per year after the Lunar New Year (Tet) holiday and have set stricter conditions for customers to enjoy the high rates.