BIDV and VietinBank's turn to reduce savings interest rates

On September 19, Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) announced a new interest rate schedule with a further reduction in terms. Accordingly, the interest rate for savings deposits of 1-2 months has been reduced to only 3%/year; the interest rate for deposits of 3 to less than 6 months is 3.5%/year and the highest interest rate for deposits of 12 months or more has been reduced to 5.5%/year. These interest rates have been reduced by a maximum of 0.3 percentage points compared to before.

Similarly, the Joint Stock Commercial Bank for Investment and Development of Vietnam ( BIDV ) also listed a new deposit interest rate schedule with a maximum decrease of 0.3 percentage points compared to before.

The highest deposit interest rate at BIDV is currently 5.5%/year applied to terms of 12 months or more; terms of 6-9 months are 4.5%/year.

Đến lượt BIDV, VietinBank giảm lãi suất gửi tiết kiệm - Ảnh 1.

Savings interest rates continue to fall

Thus, up to this point, all four "big" state-owned commercial banks including Vietcombank, VietinBank, BIDV and Agribank have simultaneously reduced interest rates to historic lows, equal to the COVID-19 period.

The move to continuously reduce input interest rates by commercial banks in the context of abundant liquidity in the banking system, even as the State Bank leader said, is "treating the disease of excess money".

According to data from the State Bank, by the end of August 2023, the economy's credit growth had only reached 5.33% compared to the end of last year, while in the same period last year, this figure was up to 9.87%.

In the latest market news, Dragon Capital experts also commented that both the USD/VND exchange rate and inflation will not have much impact on the State Bank's monetary policy towards supporting the economy and reducing capital costs for businesses. Savings interest rates continued to decrease by about 0.3-0.4 percentage points in August and may be maintained at low interest rates in the coming months.

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