Big 4 banks compete to sharply reduce deposit interest rates

From August 23, state-owned commercial banks including BIDV, VietinBank, Agribank , and Vietcombank announced new deposit interest rates.

Accordingly, at VietinBank, Vietcombank and BIDV, all have similar adjustments, when customers deposit interest rates for terms from 1 month to less than 3 months, they all decrease by 0.3 percentage points to 3-3.8%/year to 3%/year; interest rates for 6-month deposits also decrease from 5% to 4.7%/year. In particular, the interest rate for 12-month deposits has the strongest adjustment from 6.3% to 5.8%, a decrease of 0.5 percentage points.

Agribank also applies a similar interest rate reduction schedule as the above 3 banks, however, the long-term deposits of over 12 months have been reduced more deeply. Accordingly, customers depositing for a term of 13 months or more at this bank will only pay 5.5%/year, down 0.5 percentage points compared to before. The highest deposit interest rate at Agribank is 5.8%/year for a term of 12 months only.

With this adjustment, Big 4 banks have become the banks with the lowest interest rates in the system. Previously, because private banks continuously adjusted while the Big 4 group remained unchanged for nearly 2 months, the interest rates of some private banks have returned to the same level as the Big 4 group or even lower.

Previously, the State Bank had just issued document 6385 to credit institutions and foreign bank branches requesting them to continue implementing solutions to reduce interest rates. Accordingly, credit institutions were required to reduce lending interest rates for existing outstanding loans and new loans, striving to reduce interest rates by at least 1.5-2%/year.

In addition, the State Bank also requires credit institutions to submit reports on the implementation results of the commitment to reduce lending interest rates in 2023 for existing outstanding loans and new loans to the State Bank before August 25, 2023.

At the same time, credit institutions must submit a report on the implementation results of the commitment to reduce lending interest rates in 2023 for existing outstanding loans and new loans to the State Bank before January 8, 2024 .

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