Many banks 'forgot' to update savings interest rates under the direction of the State Bank

According to Decision No. 951 dated May 23rd of the State Bank of Vietnam on the maximum interest rate for VND deposits at credit institutions (CIs) in accordance with the provisions of Circular 5/07/TT-NHNN dated March 2014, 17, the maximum interest rate applicable to term deposits from 3 month to less than 2014 months is reduced from 1%/year to 6%/year.

Interest rates on deposits with a term of 6 months or more are set by credit institutions on the basis of market capital supply and demand. Decision No. 951 takes effect from May 25.

This morning, a series of banks reduced deposit interest rates from 1 month to less than 6 months to 5%. 

PVCombank also lowered the interest rate to 4,5%, lower than the ceiling of 0,5% for terms of 1-5 months.

Similarly, online deposit interest rates for 1- and 3-month terms at OCB are only 4,8% and 4,95%/year, respectively. 

LPBank only applies the maximum interest rate for the term of 3-5 months, while the term of 1-3 months is only 4,8%/year. 

Techcombank simultaneously applies 4,7%/year for 1-5 month term deposits, even for deposits of 3 billion VND or more.

VietCapital Bank applies an interest rate of 5% for 5-month term deposits, with terms from 1-4 months ranging from 4,5-4,9%/year.

The interest rate for 1-5 month terms at DongA Bank is also only 4,5%/year. 

Construction Bank (CB) even applies interest rates of 3,9%/year for 1-2 month term, and 3,95% for 3-5 month term. 

Notably, both CB, DongA Bank and VietCapital Bank had previously applied interest rates below 5% for these terms.

For the group of Big4 banks, Vietcombank brought the interest rate for 1-5 month term to 5%/year. 

VietinBank decreased to 4,5%/year for 1-2 month terms (down 0,5% compared to the old level), and 4,9% for 3-5 month terms (down by 0,5%).

At Agribank, the interest rate for 1-2 month term decreased by 0,7% to 4,7%/year, the interest rate for 3-5 month term decreased by 0,5% to 4,9%/year.

Meanwhile, BIDV applied a new interest rate for 1-2 month term of 4,6%/year (down 0,4%), while 3-5 month term was reduced by 0,5% to 5%/year. 

However, according to a survey by VietNamNet at the time after 8:30 am on May 25, there are many banks that still publicize on their website that the interest rate exceeds 5% with a term of 5-1 months, but have not updated the new interest rate.

These can be mentioned as: ABBank, MB, VietA Bank, VietBank, Sacombank, SCB,...

When reporters surveyed the reality, some banks such as ABbank, VietBank, and staff said that they had applied interest rates below 5% for terms from 1 to less than 6 months but forgot to update on the officially announced interest rate table.

Following the trend of reducing deposit interest rates since the beginning of May, besides the mandatory reduction of deposit interest rates for terms of less than 5 months according to new regulations, some banks also voluntarily reduced deposit rates for terms of 6 months or more this morning.

For example, Bao Viet Bank (BaoViet Bank) announced the Ez saving interest rate schedule for individual customers saving online with a sharp reduction of up to 0,6%.

Specifically, the interest rate for 6-month term was reduced from 8,3%/year to 7,7%/year, for 8-10 month term was reduced from 8,4%/year to 7,8%/year, 12-month term had a slight decrease, from 8,4% to 8,1%/year. 

Meanwhile, the 13-month term deposit interest rate maintained by BaoViet Bank at the highest level of 8,6%/year has decreased to 8,3%/year. Interest rate for 15-month term decreased from 8,5% to 7,9%/year, 18-month term decreased to 0,7% to only 7,8%/year.

Notably, this is the first time BaoViet Bank has reduced its deposit interest rate since early May.

Bac A Commercial Joint Stock Bank (BacA Bank) also reduced deposit interest rates by 0,4% - 0,5% for medium and long term terms.

Accordingly, the interest rate for 6-month term deposit at BacA Bank decreased by 8% to 0,4%/year, the decrease in 7,7-9-month term also decreased to 11%/year, while the 7,8-month term also decreased by 12% to 0,4%/year.

Interest rates for long terms are reduced by 0,5%/year by BacA Bank, to 8%/year for terms of 13-15 months, and 8,1%/year for terms of 18-36 months.

OCB also continues to reduce interest rates for some terms from today. The 6-month term was slightly reduced by 0,1% to 8%/year, while the 15-month term decreased by 0,2% to 8,1%/year. 

MSB also reduced interest rates by 0,2% for all terms over 5 months from today. Current interest rates for online deposits at MSB are as follows: Term 6-11 months 7,3%/year; term 12 - 36 months 7,4%/year.

Notably, Techcombank simultaneously reduced interest rates by 0,3% for terms and applied to different deposit levels. For deposit accounts of less than 1 billion VND, the interest rate is 6,8%/year. For deposit accounts from 1 dong to less than 3 billion dong, the interest rate is 6,9%/year. For deposit accounts of 3 billion VND or more, the interest rate is 7%/year. These interest rates are generally applied to deposits with a term of 6 months or more. 

Thus, BaoVietBank, OCB, BacA Bank, MSB and Tecombank are the latest banks to reduce deposit interest rates after 5 months. 

Since the beginning of May, 5 banks have reduced deposit interest rates, including VietA Bank, VIB, OCB, Eximbank, MSB, VPBank, TPBank, Vietcombank, Agribank, VietinBank, BIDV, KienLongBank, NamA Bank, NCB, Saigonbank, PVCombank, HDBank, OceanBank, Sacombank, Techcombank, BacA Bank, DongA Bank, VietBank, and BaoViet. 

Banks that have reduced interest rates twice during this time are NCB, Sacombank, Eximbank, VPBank, KienLong Bank and Saigonbank, TPBank, BacA Bank, OCB, MSB and Techcombank.

Particularly, VietBank and OCB have reduced deposit interest rates 3 times in less than a month.