The rate has dropped sharply, with some banks seeing rates as low as 3.6%.

VietNamNet•19/06/2023

PVCombank has sharply reduced interest rates by 0.5 percentage points for terms of 6 months or more. Currently, the bank's online deposit interest rate chart shows only 7%/year for 6-month deposits; 7.3%/year for 7-8 month terms. Interest rates are 7.4%/year for 9-10 month terms; 7.5%/year for 11-month terms; 7.7%/year for 12-month terms; and 7.8%/year for terms over 12 months.

NamA Bank reduced interest rates by 0.1 to 0.3 percentage points for terms of 6 months or more. Online deposit interest rates for 6-month and 9-month terms decreased to 7.6%/year. Interest rates for 12-14 month terms decreased slightly by 0.1 percentage point to 7.7%/year. A similar reduction also brought deposit interest rates for terms of 15 months or more down to 7.5%/year.

Meanwhile, BacA Bank slightly reduced deposit interest rates by 0.1 percentage point for terms of 6 to 15 months. The interest rate for 6-8 month terms at this bank is 7.6%/year. For 9-11 month terms, it's 7.7%/year; for 12 month terms, it's 7.8%/year; and for 13-15 month terms, it's 7.85%/year. However, deposit rates for terms of 18 months or more were adjusted down by 0.2 percentage points to 7.9%/year.

This is the first time since the beginning of June that BacA Bank, PVCombank, and NamA Bank have reduced deposit interest rates, bringing the total number of commercial banks that have lowered interest rates to 23.

Among the banks that lowered interest rates for the first time this month, Vietcombank is noteworthy. Deposit interest rates for 1-2 month terms at Vietcombank dropped sharply from 4.5% to just 3.6% per year. Interest rates for 3-5 month terms decreased from 5% to 4.3% per year.

Specifically, deposit interest rates for terms of 6-11 months decreased to 5.2%/year compared to 6%/year last week. Interest rates for terms of 12 months or more also dropped sharply from 6.8% to 6.3%/year.

Agribank reduced interest rates for 1-2 month terms from 4.7% to 4.3% per year; and for 3-5 month terms from 4.9% to 4.5% per year. Simultaneously, the bank further reduced interest rates for longer terms for the first time this month. The 6-9 month term rate decreased from 6% to 5.7% per year; and the 12-month term rate decreased from 6.8% to 6.3% per year.

Meanwhile, some banks have reduced interest rates two or three times since the beginning of the month. HDBank has just announced its third further reduction in deposit interest rates, with a decrease of 0.2 percentage points for deposits of certain terms of 6 months or more.

According to the online deposit interest rate chart, the interest rate for a 6-month term is now 7.5%/year; terms of 7-11 months are only 6.9%/year; and terms of 12-13 months are 7.5%/year. Meanwhile, the 18-month term remains unchanged at 7.1%/year.

BaoViet Bank has also just reduced interest rates for the second time this month. Specifically, the reduction is up to 0.5 percentage points for online deposit terms. The interest rate for a 6-month term is now 7%/year; and for terms of 7-11 months, it is now 7.1%/year after the 0.5 percentage point reduction.

Interest rates for 12-month terms decreased by 0.2 percentage points to 7.7%/year; 13-month terms to 7.9%/year (the highest rate); and 15-18 month terms remained unchanged at 7.6%/year.

*Banks are scrambling to lower interest rates. (Photo: Hoang Ha).*

OCB Bank also reduced interest rates for the second time with a sharp decrease of 0.5 percentage points, bringing the rates to 7.3% and 7.4% per year for 6-month and 9-month terms, respectively. The 12-15 month term saw a 0.3 percentage point reduction to 7.6% per year. Terms of 18 months or more were reduced by 0.2 percentage points to 7.4% per year.

VietA Bank also reduced interest rates for the second time, decreasing them by 0.2 percentage points for terms of 6 months or more. Interest rates for 6-11 month terms are now 7.4%/year, and for 12-18 month terms are 7.6%/year. However, interest rates for terms under 6 months have been reduced to 4.6%/year, lower than the maximum rate stipulated by the State Bank of Vietnam.

In addition, some banks slightly reduced interest rates on certain long-term deposits. LPBank lowered its interest rate from 7.9% to 7.6% per year for the 18-month term.

Among the Big4 banks, BIDV maintained its interest rate at 4.5%/year for 1-3 month terms while reducing it from 4.7% to 4.65%/year for 3-5 month terms.

VietinBank reduced interest rates for 1-2 month terms from 4.5% to 4.25% per year, and for 3-5 month terms from 4.9% to 4.65% per year. Interest rates for other terms remained unchanged.

Since the beginning of June, the market has seen 23 banks reduce deposit interest rates, including: Agribank, Vietcombank, BacA Bank, NamA Bank, PVCombank, TPBank, BaoViet Bank, GPBank, BIDV, Sacombank, VIB, HDBank, NCB, OCB, BVBank, VPBank, SCB, VietA Bank, TPBank, SHB, HDBank, KienLongBank, and Saigonbank.

Among them, BaoViet Bank, VIB, Saigonbank, TPBank, NCB, VietA Bank, SCB, OCB, and VietA Bank are the banks that have reduced interest rates twice since the beginning of the month.

HDBank alone reduced interest rates three times in June.

TABLE OF HIGHEST DEPOSIT INTEREST RATES AT BANKS ON JUNE 19 (%/year)
BANK	1 MONTH	3 MONTHS	6 MONTHS	9 MONTHS	12 MONTHS	18 MONTHS
ABBANK	4.75	4.75	8.2	8.2	8.3	8.5
GPBank	4.75	4.75	8.1	8.2	8.3	8.4
CBBANK	4.75	4.75	7.85	7.95	8.15	8.25
VIETBANK	4.75	4.75	7,8	7.7	7,8	7,8
NCB	4.75	4.75	7.7	7.7	7.9	7,8
NAMA BANK	4.75	4.75	7.6	7.6	7.7	7.5
BACA BANK	4.75	4.75	7.6	7.7	7,8	7.9
OCEANBANK	4.75	4.75	7.6	7.7	7,8	8.1
HDBANK	4.75	4.75	7.5	6.9	7.5	7.1
EXIMBANK	4.75	4.75	7.5	7.5	7.6	7.6
VPBANK	4.75	4.75	7.4	7.7	7.4	6.6
VIETA BANK	4.6	4.6	7.4	7.4	7.6	7.6
VIB	4.75	4.75	7.3	7.4		7.5
TPBANK	4.75	4.75	7.3		7.3	7.3
SEABANK	4.75	4.75	7.3	7.33	7,8	7.41
PGBANK	4.75	4.75	7.3	7.3	7.5	7.5
MSB	4.75	4.75	7.3	7.3	7.4	7.4
OCB	4.75	4.75	7.3	7.4	7.6	7.4
SHB	4.75	4.75	7.2	7.2	7.7	7.7
LPBANK	4.55	4.55	7.2	7.2	7.3	7.6
BVBANK	4.4	4.7	7.1	7.4	7.7	7,8
SCB	4.75	4.75	7.08	6.96	7.45	7.25
BAOVIETBANK	4.75	4.75	7	7.1	7.7	7.6
SAIGONBANK	4.75	4.75	7	7.1	7.4	7.4
PVCOMBANK	4.25	4.25	7	7.4	7.7	7,8
TECHCOMBANK	4.45	4.45	6.9	6.9	6.9	6.9
KIENLONGBANK	4.75	4.75	6,7	6.9	7.1	7.3
SACOMBANK	4.75	4.75	6.6	6.9	7.2	7.35
MB	4.7	4.7	6.5	6.6	7.2	7.3
MB	4.5	4.65	6	6	6.8	6.8
VIETINBANK	4.5	4.65	6	6	6.8	6.8
AGRIBANK	4.3	4.5	5.7	5.7	6.3	6.3
VIETCOMBANK	3.6	4.3	5.2	5.2	6.3	6.3

The State Bank of Vietnam (SBV) has decided to adjust interest rates, effective from June 19, 2023; specifically as follows: Decision No. 1123/QD-NHNN dated June 16, 2023, on the refinancing interest rate, rediscount interest rate, overnight lending interest rate in interbank electronic payment and lending to compensate for capital shortages in clearing payments of the SBV to credit institutions. Accordingly, the overnight lending interest rate in interbank electronic payment and lending to compensate for capital shortages in clearing payments of the SBV to credit institutions is reduced from 5.5%/year to 5%/year; the refinancing interest rate is reduced from 5.0%/year to 4.5%/year; and the rediscount interest rate is reduced from 3.5%/year to 3.0%/year.

Decision No. 1124/QD-NHNN dated June 16, 2023, on the maximum interest rate for Vietnamese Dong (VND) deposits of organizations and individuals at credit institutions as stipulated in Circular No. 07/2014/TT-NHNN dated March 17, 2014. Accordingly, the maximum interest rate applied to demand deposits and deposits with a term of less than 1 month remains unchanged at 0.5%/year; the maximum interest rate applied to deposits with a term from 1 month to less than 6 months is reduced from 5.0%/year to 4.75%/year, except for the maximum interest rate for VND deposits at People's Credit Funds and Microfinance Institutions, which is reduced from 5.5%/year to 5.25%/year; the interest rate for deposits with a term of 6 months or more is determined by credit institutions based on market supply and demand for capital.

Decision No. 1125/QD-NHNN dated June 16, 2023, on the maximum short-term lending interest rate in VND of credit institutions to borrowers to meet capital needs for certain economic sectors and industries as stipulated in Circular No. 39/2016/TT-NHNN dated December 30, 2016. Accordingly, the maximum short-term lending interest rate in VND of credit institutions to borrowers to meet capital needs for certain economic sectors and industries is reduced from 4.5%/year to 4.0%/year; specifically, the maximum short-term lending interest rate in VND of People's Credit Funds and Microfinance Institutions for these capital needs is reduced from 5.5%/year to 5.0%/year.

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