Specifically, out of 35 banks, only 5 banks still apply 12-month savings interest rates from 8 - 8.2%/year. Accordingly, the highest rate of 8.2%/year is listed at Vietnam International Commercial Joint Stock Bank ( VIB ); followed by 8.1%/year at Bao Viet Commercial Joint Stock Bank (BaoVietBank) and An Binh Commercial Joint Stock Bank (ABBank); 8.02%/year at Global Petroleum Commercial Joint Stock Bank (GPBank) and 8%/year at National Commercial Joint Stock Bank (NCB).

For the same term, 23/35 banks listed interest rates from 7%/year; of which, Orient Commercial Joint Stock Bank (OCB) mobilized at 7.9%/year; Saigon Commercial Joint Stock Bank (SCB), Vietnam Joint Stock Commercial Bank for Industry and Trade (BVBank) and Viet A Commercial Joint Stock Bank (VietABank) mobilized at 7.8%/year; Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank), Ocean Commercial Joint Stock Bank (OceanBank), Bac A Commercial Joint Stock Bank (BacABank), Dai Chung Commercial Joint Stock Bank (PVCombank), Lien Viet Post Joint Stock Commercial Bank ( LPBank ) all mobilized at 7.7%/year...

Illustration photo: dantri.com.vn

For the 6-month term, the highest interest rate currently applied at NCB is 7.95%/year; GPBank 7.92%/year; ABBank 7.8%/year; SCB 7.75%/year; VietBank 7.7%/year...

BaoVietBank, Oceanbank, BacABank, and Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ) all mobilize interest rates of 7.5%/year for a 6-month term.

Not staying out of that trend, state-owned commercial banks have also simultaneously reduced their deposit interest rates. The highest interest rates at the Bank for Investment and Development of Vietnam (BIDV), the Bank for Foreign Trade of Vietnam (Vietcombank), the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and the Bank for Agriculture and Rural Development (Agribank) have decreased from 7.2%/year to 6.8%/year, applicable for terms of 12 months or more; the interest rate for terms of 6-9 months has also decreased from 5.8-5.9%/year to 5.5%/year.

The highest deposit interest rate in the system is currently recorded at PVCombank at 11.5%/year. However, to enjoy such "huge" interest, customers must deposit money with a balance of VND2,000 billion or more; below this level, the interest rate is 8.3%/year.

Saigon - Hanoi Commercial Joint Stock Bank (SHB) also mobilized the highest interest rate of up to 9.5%/year for the 8-year term deposit certificate. Meanwhile, at Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) and Vietnam Maritime Commercial Joint Stock Bank (MSB), the highest interest rates are 9.3% and 9.2%/year respectively when customers deposit 12-13 month term from 300 and 500 billion VND or more.

Thus, the current interest rates of many banks have decreased by more than 1%/year compared to the beginning of May. Some banks have even reduced their deposit interest rates 3-4 times in just the past month such as: VietBank, OCB, NCB, VietABank, Kien Long Commercial Joint Stock Bank (Kienlongbank), Saigon Industrial and Commercial Joint Stock Bank (Saigonbank), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)...

Kienlongbank is the latest bank to announce a reduction in deposit interest rates from June 1. With a reduction of 1%/year for a term of 6-9 months, interest rates at Kienlongbank are down to 6.7 - 6.9%/year. Interest rates for a term of 12 months are also down 0.7%/year to 7.1%/year.

The interest rate cuts in recent terms demonstrate the consensus of banks in their efforts to reduce deposit interest rates, creating conditions for further reductions in lending interest rates to support businesses and people to overcome difficulties, especially after the State Bank decided to reduce operating interest rates for the third time and lower the deposit interest rate ceiling for the second time since the beginning of the year, effective from May 25.

Assessing the interest rate outlook, the updated report on June 1 by SSI Securities Corporation said that interest rates could decrease by another 50-100 basis points from now until the end of the year and will continue to decrease in 2024.

Also according to SSI, while deposit interest rates have decreased by 250-300 basis points compared to the beginning of the year, the adjustment of home purchase interest rates has not been much because home purchase loans are assessed as quite risky related to issues in the corporate bond and real estate markets.

With current home loan interest rates hovering around 13%, SSI believes that it may be necessary to cut interest rates by 150-200 basis points to stimulate demand in the real estate market, and this is likely to happen in 2024.

"At that time, the liquidity situation will be better when the Government's measures to remove difficulties for the real estate market and corporate bond market come into practice," SSI assessed.

VNA