More banks continue to reduce deposit interest rates

On August 25, after the state-owned banking sector announced a series of reductions in deposit interest rates, many private banks then followed suit and adjusted average interest rates for most terms.

According to the new interest rate schedule applied to online deposit products (the product with the highest interest rate) of Eximbank, the interest rate for deposits with terms under 6 months decreased from 4.75% to 4.25%; for terms of 6-12 months decreased from 5.8% to 5.6 - 5.7%; for terms from 13 months to 36 months remained the same as before, at 5.8%.

Previously, this bank had just reduced interest rates on August 23. In the past half month, Eximbank's deposit interest rates have decreased by 0.5 percentage points for terms under 6 months and by 0.5 - 0.7 percentage points for terms of 6 months or more.

On August 24, ABBank also announced its first interest rate reduction in August. Specifically, the interest rate for 6-month deposits decreased from 7% to 6% per year. The 7-8 month deposit rate decreased from 6.7% to 6.3% per year. The 9-12 month deposit rate decreased from 6.7% to 5.7% per year. The deposit rates for 13-36 months also decreased sharply from 6.4% to 5.4% per year, and the 48-60 month deposit rate decreased from 6% to 5% per year.

PVCombank also reduced its deposit interest rates for the first time this month by 0.3 percentage points for deposits with terms of 6-36 months. The deposit interest rate for a term of 6-11 months is now 6.7%/year, for a term of 12-13 months is now 6.8%/year, and for a term of 18-36 months is now 6.9%/year.

At Southeast Asia Commercial Joint Stock Bank ( SeABank ), from August 2023, the 6-month deposit interest rate has dropped sharply to below 6%, with a maximum of only 5.9%/year for deposits of VND 10 billion, and a maximum of 5.4%/year for regular deposits.

Another major bank,ACB, has also sharply reduced its interest rates. Currently, deposits for 6-12 months with this bank are only up to 5.8%/year instead of 6.2-6.4%/year as before. To get this interest rate, customers need to deposit an amount of 5 billion VND or more.

After consecutive reductions, there are currently only 5 banks still listing deposit interest rates above 7%: Dong A Bank, NCB, Nam A Bank and VietABank.

At the group of large private banks, the highest interest rates mainly fluctuate between 5.8 - 6.8%/year such as:SHB (6.8%), Sacombank (6.3%), MB (6.1%), Techcombank (6.3%).

Previously, the group of state-owned commercial banks including Agribank, BIDV, Vietcombank, and Vietinbank simultaneously reduced deposit interest rates by up to 0.5 percentage points for some terms.

Compared to the peak period at the end of last year, savings interest rates have decreased by 3-4%, especially for terms of 6 months or more. The current interest rate level is on par with the first half of 2022 .

Source