Find the bank with the highest interest rate.

Many banks reached the finish line ahead of schedule.

At noon on June 16th, the State Bank of Vietnam announced a reduction in the policy interest rate. This is the fourth consecutive reduction since mid-March 2023. Among the changes, the ceiling on deposit interest rates is one of the most closely watched aspects by the market.

Accordingly, from June 19th, the maximum interest rate applied to demand deposits and time deposits with a term of less than 1 month remains unchanged at 0.5%/year; the maximum interest rate applied to time deposits with a term from 1 month to less than 6 months is reduced from 5.0%/year to 4.75%/year, except for the maximum interest rate for VND deposits at People's Credit Funds and Microfinance Institutions, which is reduced from 5.5%/year to 5.25%/year; interest rates for time deposits with a term of 6 months or more are determined by credit institutions based on market supply and demand for capital.

As can be seen, the ceiling interest rate for deposits with maturities from 1 month to less than 6 months has decreased from 5.0%/year to 4.75%/year. Currently, many banks have already reached the ceiling of 4.75%/year ahead of schedule.

From June 19th, the ceiling interest rate for deposits with maturities under 6 months will be reduced to only 4.75% per year. Therefore, banks currently offering higher interest rates for short-term deposits are attracting attention. (Illustrative image)

The Big 4 banks (including Vietnam Foreign Trade Commercial Bank – Vietcombank, Vietnam Investment and Development Bank – BIDV, Vietnam Industrial and Commercial Bank – VietinBank, and Vietnam Agricultural and Rural Development Bank – Agribank ) all apply an interest rate of 4.6%/year for a 3-month term and 4.1%/year for a 1-month term.

Several joint-stock commercial banks also reached their targets early, including Southeast Asia Commercial Joint Stock Bank – SeaBank (4.7%/year), Vietnam Public Commercial Joint Stock Bank – PvcomBank (4.5%/year), and DongA Commercial Joint Stock Bank – DongA Bank (4.5%/year). The applicable terms are 3 months and 1 month.

Not only does DongA Bank offer low short-term interest rates, but it has also pushed long-term interest rates down below 7% per year. Specifically, the deposit interest rates for 6-month and 12-month contracts at DongA Bank are 6.59% per year and 6.94% per year, respectively.

Find the bank with the highest interest rate.

While interest rate differentials between banks are very high for long-term deposits, these differentials are quite modest for short-term deposits (under 6 months). Currently, many banks still list short-term interest rates higher than 4.75%/year. However, the "higher" rate is rather modest.

5% per annum is the highest rate offered by many banks for 1-month and 3-month terms. Some notable examples include Techcombank, VPBank,and ACB , among others.

At a lower rate of 4.8%/year (for 1-month and 3-month terms), some banks offer rates such as VietA Bank and Lien Viet Post Bank.

Meanwhile, many banks apply a rate of 4.8%/year for a 1-month term but maintain a higher policy (from 4.9%/year to 5%/year) for a 3-month term. These include Military Commercial Joint Stock Bank – MB (4.9%/year), Orient Commercial Bank – OCB (4.95%/year), and Saigon Thuong Tin Commercial Joint Stock Bank – Sacombank (5%/year).

As can be seen, from June 19th, this list will undergo many changes, and the highest rate applied will only be 4.75% per year.

The interest rate differential between short-term and long-term maturities is very high.

Interest rate caps are not applied to long-term maturities. However, adjustments show that when short-term interest rates decrease, long-term rates also decrease. Previously, at some banks, interest rates for 6-month and 12-month maturities were listed above 9% per year, but before the deadline, this rate was only slightly above 8% per year.

At the close of this week, the highest interest rate for a 6-month term was 8.2% at An Binh Commercial Joint Stock Bank (ABBank) and 8.1%/year at Global Petroleum Commercial Bank (GPBank).

For the 12-month term, the highest rate is 8.3%/year, offered by GPBank and ABBank. PVComBank lists an interest rate of 8.2%/year.

For longer terms, the Big 4 banks offer the lowest rates, at only 5.5%/year (6 months) and 6.8%/year (12 months).

Interest rates for terms under 6 months are significantly lower than for longer terms, but many businesses still choose them because they need to ensure sufficient cash flow to finance debt repayment and maintain liquidity.

Source: https://www.congluan.vn/tran-lai-suat-giam-tu-19-6-tim-ngan-hang-co-lai-cao-nhat-post252002.html