Many banks lower savings interest rates to below 6%

Four state-owned banks and several private banks have just simultaneously reduced savings interest rates to below 6% per year.

Vietcombank, BIDV, VietinBank and Agribank have just adjusted their deposit interest rates with a reduction of up to 0.5%. Since the beginning of the year, this is the fifth time the "Big 4" banks have simultaneously sharply reduced their savings interest rates. Interest rates at the state-owned group have now dropped to below 6% per year while at the beginning of this year they were listed at 7.5-8% per year.

Transaction at a commercial bank. Photo: Giang Huy.

The interest rates listed at the counter of these 4 "big guys" are currently equivalent. Specifically, customers depositing money at the counter for a term of 1 month will receive an interest rate of 3% per year, 3 months 3.8%, 6-9 months 4.7%. A 12-month deposit will receive an interest rate of 5.8% per year.

When sending money online, the interest rates among the four "big guys" are slightly different, but the highest rate is currently only 5.8% per year.

In addition, more than a dozen private banks have also continued to adjust their interest rates in recent days. This is the second time this group has reduced interest rates in August alone.

Savings interest rates at some private banks such as Techcombank, ACB , Techcombank, Eximbank have fallen below 6% per year.

At ACB, this bank has adjusted its interest rate table twice since the beginning of the month, reducing the highest interest rate from 6.7% to 5.5% per year for deposits under 1 billion VND. In just the past month, the listed interest rate at Eximbank has also decreased from 7.4% to only 5.8% per year.

Banks are rushing to reduce savings interest rates amid excess capital. Credit growth as of the end of July, according to the State Bank, reached about VND12.47 trillion, up only 4.56% compared to the beginning of the year while the growth target for the whole year is 14-15%.

Credit even grew negatively in July due to the economy 's poor ability to absorb capital, many businesses' finances were in decline, and it was more difficult for them to access loans than before.

In the context of input interest rates cooling down rapidly and strongly, the State Bank recently requested banks to simultaneously reduce interest rates on old and new loans by at least 1.5-2%, following the Government's direction.

Several banks have recently launched many incentive packages to reduce new loan interest rates to stimulate credit demand in the context of sluggish loan growth. Old loan interest rates have also been adjusted, but have decreased more slowly than new loan interest rates. Depending on the bank and customer group, existing loan interest rates have decreased by about 1% to 2% since the beginning of the year.

According to Quynh Trang/VnExpress

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