Four state-owned banks have all reduced their deposit interest rates to levels lower than during the Covid-19 pandemic. The 12-month term at major banks is at 5.3%/year.
After Vietcombank, the remaining three state-owned banks, Agribank , BIDV and VietinBank, also simultaneously reduced savings interest rates by 0.2 percentage points per term, bringing the highest interest rate down to 5.3%/year.
The Big 4 banks have all reduced their highest deposit interest rates to historic lows, lower than during the Covid-19 period. From July 2021 to July 2022, the lowest deposit interest rate at these 4 units is 5.5%/year.
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The interest rates of the 4 banks are almost the same, there are some differences in the form of online savings but not too big.
With nearly half of the deposit mobilization market share of the entire system, the move by this banking group is considered to be a pioneer for private banks to further reduce deposit interest rates in the coming time.
Currently, the remaining 20 banks have lowered their listed interest rates for 12-month terms to below 6%/year. Interest rates of 6-6.5% are available at some banks, but only for long terms of 18 months or more.
The move to lower interest rates to the “rock bottom” has helped banks reduce input costs, thereby reducing lending rates for customers. This trend is considered consistent with the goal of reducing lending rates and supporting economic recovery under the Government’s direction. At the end of last year, savings interest rates were anchored at 11-12%/year in the context of many banks racing to mobilize capital.
Interest rates on the market have been continuously decreasing over the past few months, also in the context of the banking system having excess money due to sluggish credit growth. As of September 29, credit in the entire economy reached about 12.7 quadrillion VND, up about 6.9% compared to the beginning of the year, recovering compared to previous months but still low, only half compared to the same period last year and less than half of the target set for the whole year of 14-15%.
The director of a private bank branch in Bac Ninh commented that the low interest rate environment during the Covid-19 period caused money seeking profits to flow to other investment channels such as stocks, real estate, cryptocurrencies, etc. This is not out of the question in the near future. He predicted that the interest rate trend will continue to remain low, at least until the end of this year.
According to Dan Tri
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