The highest interest rate decreased from 11.5% to 11%.

Công Luận•22/07/2023

The highest interest rate decreased from 11.5% to 11%.

Since the beginning of 2023, following directives from the Prime Minister and the State Bank of Vietnam, commercial banks have continuously reduced deposit interest rates. As a result, the overall level of deposit interest rates has fallen significantly lower than before.

Specifically, information released by the State Bank of Vietnam shows that by the end of June 2023, the average deposit and lending interest rates for new VND transactions of commercial banks decreased by approximately 1.0%/year compared to the end of 2022.

According to the State Bank of Vietnam, commercial banks have proactively adjusted and implemented preferential credit programs/packages to reduce lending interest rates by approximately 0.5-3.0% per year, depending on the customer group, for new loans.

The highest deposit interest rate decreased from 115 to 11 (Figure 1). — At PVCombank, the highest interest rate has decreased from 11.5%/year to 11%/year, applicable to deposits exceeding 2 trillion VND. (Screenshot)

Furthermore, by the end of July 2022, deposit interest rates continued to be adjusted downwards. Long-term interest rates had fallen below 7% per year at many institutions.

As for the banks with the highest deposit interest rates, the decision to adjust them downwards was also made not long ago.

For a long time, Vietnam Public Commercial Bank (PVCombank) has held the position of a bank with exceptionally high deposit interest rates, at 11.5% per year for 12-month and 13-month terms.

However, this offer is not for the masses but only for the ultra-wealthy, as PVCombank stipulates a rate of 11.5% applicable to new deposit contracts valued at over 2 trillion VND.

However, PVCombank has now adjusted this highest rate down from 11.5%/year to 11%/year. The remaining conditions remain unchanged.

Meanwhile, An Binh Commercial Joint Stock Bank (ABBank), the credit institution with the second highest deposit interest rate on the market, maintains its rate of 10.9% per year for a 13-month term. This policy is only available to customers depositing over 1,500 billion VND.

Ho Chi Minh City Development Commercial Bank ( HDBank ) is the third-highest-paying deposit bank in the market. Specifically, for a 13-month term and deposits exceeding 300 billion VND, customers will receive an interest rate of 9.1% per year. For a 12-month term and deposits exceeding 300 billion VND, the rate will be 8.6% per year.

The Vietnam-Russia Joint Venture Bank (VRB) once attracted attention for listing deposit interest rates as high as 8.9% per year. However, VRB recently adjusted the rate down to 8.4% per year and it is currently at 8.3% per year.

In addition, there is another bank that offers deposit interest rates above 8% per year. That is Construction Bank (CB) with 8.4% per year.

The Big4 firms cut short-term interest rates.

During interest rate cuts, the Big4 (the group of four state-owned commercial banks including Vietcombank, BIDV, VietinBank, and Agribank ) usually take the lead. Interest rates at the Big4 are among the lowest in the market.

After a brief "break," the Big4 unexpectedly lowered interest rates on short-term maturities this weekend.

Following the State Bank of Vietnam's most recent adjustment to the policy interest rate, which lowered the ceiling for deposit interest rates to 4.75% per year, the Big4 firms have applied rates below the ceiling for terms under 6 months.

Specifically, at Vietcombank, from the second half of June 2023, deposit interest rates for 4-month and 5-month terms were below the ceiling, at only 4.1%/year. For 2-month and 3-month terms, the interest rate was 3.4%/year.

However, from next week, a new interest rate schedule will be applied. Accordingly, the interest rate for 4-month and 5-month terms will remain at 4.1%/year. But the interest rate for 2-month and 3-month terms will decrease by 0.1% to 3.3%/year. The highest rate will remain at 6.3%/year for terms of 12 months or more.

For online savings deposits, Vietcombank adjusted the interest rate for a 1-month term from 3.6%/year down to 3.4%/year. The interest rate for a 3-month term decreased by 0.1 percentage point to 4.2%/year. The interest rates for 6-month and 9-month terms decreased by 0.1% to 5.1%/year.

The same thing is happening in the remaining units of the Big4 group.

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