There's one place offering an 8% interest rate; where is the best place to deposit my money?

Since the beginning of July, seven banks have reduced deposit interest rates: TPBank, ABBank, Saigonbank,SHB , NamA Bank, Eximbank, and LPBank.

All of these banks implemented interest rate reductions on Monday, July 3rd. Eximbank, however, only reduced interest rates for 6-month and 12-month deposit terms (to 7.3% and 7.4% per year, respectively).

LPBank has reduced deposit interest rates for terms of 18 months or more (from 7.4% down to 7% per year).

TABLE OF HIGHEST DEPOSIT INTEREST RATES AT BANKS ON JULY 6, 2023 (%/year)
BANK	1 MONTH	3 MONTHS	6 MONTHS	9 MONTHS	12 MONTHS	18 MONTHS
CBBANK	4.2	4.3	7.85	7.95	8.15	8.25
BACA BANK	4.75	4.75	7.6	7.7	7,8	7.9
VIETBANK	4.75	4.75	7.6	7.7	7.7	7.5
GPBank	4.75	4.75	7.55	7.65	7.75	7.85
ABBANK	4.75	4.75	7.5	7.55	7.6	7.4
VIETA BANK	4.75	4.75	7.4	7.4	7.6	7.6
NAMA BANK	4.65	4.65	7.3	7.4	7.7	7.5
NCB	4.75	4.75	7.3	7.4	7.6	7.5
OCB	4.6	4.75	7.3	7.4	7.6	7.4
OCEANBANK	4.75	4.75	7.3	7.4	7.5	7,8
PGBANK	4.75	4.75	7.3	7.3	7.5	7.5
EXIMBANK	4.75	4.75	7.3	7.5	7.4	7.6
MSB	4.75	4.75	7.3	7.3	7.4	7.4
HDBANK	4.25	4.25	7.3	6.9	7.3	7.1
BVBANK	4.4	4.7	7.1	7.4	7.7	7,8
VPBANK	4.65	4.65	7.1	7.2	7.1	6.3
PVCOMBANK	4.25	4.25	7	7.4	7.7	7,8
BAOVIETBANK	4.6	4.7	7	7.1	7.7	7.6
SHB	4.75	4.75	7	7.1	7.2	7.2
TECHCOMBANK	4.45	4.45	6.9	6.9	6.9	6.9
SCB	4.75	4.75	6.85	6.85	6.95	6.85
SAIGONBANK	4.75	4.75	6.8	6.9	7.2	7.2
SEABANK	4.75	4.75	6.8	6.95	7.1	6.9
VIB	4.75	4.75	6.8	6.8		7
KIENLONGBANK	4.75	4.75	6,7	6.9	7.1	7.3
TPBANK	4.55	4.75	6,7		6,7	6,7
SACOMBANK	4.75	4.75	6.6	6.9	7.2	7.35
MB	4.55	4.55	6.4	6.5	7	6.8
LPBANK	4.55	4.55	6.4	6.4	6.6	7
AGRIBANK	4.3	4.5	5.7	5.7	6.3	6.3
MB	4	4.5	5,6	5,6	6.3	6.3
VIETCOMBANK	3.6	4.3	5.2	5.2	6.3	6.3
VIETINBANK	3.4	4.1	5	5	6.3	6.3

In the interbank market, as of June 29th, interbank interest rates for overnight, 1-week, and 2-week maturities decreased by 0.69%, 0.21%, and 0.44% respectively, to 0.39%, 1.2%, and 1.43%. Thus, interbank interest rates have fallen to their lowest level in the past year.

At the National Conference of the Government with Local Authorities on July 4th, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong stated that, following successive reductions in the policy interest rate, interest rates have returned to pre-Covid-19 pandemic levels.

The State Bank of Vietnam is also one of the few central banks in the world to lower interest rates while other countries are still keeping interest rates high (as of June 15th, there have been 101 interest rate increases worldwide).

In addition, the State Bank of Vietnam is directing credit institutions to review procedures and documents to increase access to credit.

As of June 20th, nationwide credit growth was weak at 3.58%, while deposit growth reached 3.26% compared to 2022. According to calculations by Bao Viet Securities (BVSC), the gap between deposits and loans narrowed to VND 146,000 billion, compared to approximately VND 287,000 billion in March. Liquidity pressure is not significant, creating favorable conditions for interbank interest rates to continue to fall.

Looking back at the first half of 2023, the State Bank of Vietnam closely monitored macroeconomic developments and followed the Government's directives to flexibly manage and maintain good liquidity, ensuring sufficient capital for credit institutions to provide loans.

Although overall credit growth in the economy remains weak, credit to the real estate business increased by 14% in the first five months of the year, indicating that the solutions implemented to alleviate difficulties in the markets have begun to show results.

However, it is noteworthy that credit for real estate consumption decreased by 1.32% in the first five months, while it increased by as much as 15% in the same period last year.

Source