Deposit interest rates at four major banks of Vietnam were adjusted sharply, down by 0.4% per year from the previous listings, bringing the rate to 1.8% per year at the lowest.

Savings interest rates have set a new record low of only 1.9% per year for a 1-2-month term.

Deposit interest rates at four major banks of Vietnam have been adjusted sharply, down by 0.2-0.4% per year from the previous listings, bringing the rate to 2.2% per year at the lowest.

The race to lower deposit interest rates among banks is expected to continue until the end of 2023, according to analysts.

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.