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Vietnam Bank for Investment and Development (BIDV) has simultaneously reduced its deposit interest rates by 0.1 – 0.3% per annum across all terms, bringing the highest deposit interest rate below 5% per annum.
Specifically, the deposit interest rates for terms of 1 – 2 months have decreased from 1.9% per annum to 1.7% per annum; for terms of 3 – 5 months have decreased from 2.2% per annum to 2% per annum; for terms of 6 – 9 months have decreased from 3.2% per annum to 3% per annum; for terms of 12 – 18 months have decreased from 4.8% per annum to 4.7% per annum; for terms of 24 – 36 months have decreased from 5% per annum to 4.8% per annum.
Prior to BIDV, two banks in the Big4 group, Agribank and Vietcombank, had also reduced their deposit interest rates below this level.
Since March 15, Vietnam Bank for Agriculture and Rural Development (Agribank) has adjusted down the interest rates for various terms.
Specifically, the deposit interest rate for the term of 1 month has decreased from 1.7% per annum to 1.6% per annum; for the term of 3 – 5 months has decreased from 2% per annum to 1.9% per annum;
For the terms of 6 – 11 months, the interest rate remains unchanged at 3% per annum. Meanwhile, the interest rates for the terms of 12 and 13 months have decreased by 0.1 percentage points, from 4.8% per annum to 4.7% per annum; for the term of 24 months has decreased from 4.9% per annum to 4.7% per annum.
Previously, Vietcombank had also reduced its deposit interest rates below 5% per annum since the beginning of January 2023. Currently, the interest rates for deposits of less than 1 month at Vietcombank are 0.2% per annum; for the term of 1 – 2 months are 1.7% per annum; for the term of 3 months are 2% per annum; for the terms of 6 and 9 months are enjoyed at the same interest rate of 3% per annum;
The most preferential interest rate that Vietcombank applies to individual customers is 4.7% per annum, for terms of 12 months and more.
Thus, the deposit interest rate chart of Agribank, Vietcombank, and BIDV is currently quite similar. Meanwhile, VietinBank is the bank with the highest deposit interest rate in the Big4 group, slightly higher than the other banks by 0.1 – 0.3% per annum, depending on each term.
Specifically, deposits with terms from 1 month to less than 3 months at VietinBank have an interest rate of 1.9% per annum; the terms of 3 months to less than 6 months will enjoy the same interest rate of 2.2% per annum;
VietinBank applies an interest rate of 3.2% per annum for terms of 6 months to less than 12 months; individual customers will receive an interest rate of 4.8% per annum when depositing for the term of 12 months to less than 24 months;
The highest deposit interest rate that VietinBank applies to individual customers is 5% per annum, for terms of 24 months and more. This is also the highest deposit interest rate among the Big4 group.
Source: Compiled by Quoc Thuy
In March, the trend of adjusting down deposit interest rates of most banks is still being maintained, and some private banks such as ACB, Sacombank, VPBank, Techcombank are maintaining interest rates significantly lower than state-owned banks. However, some joint-stock banks have begun to increase deposit interest rates at short terms of less than 5 months to attract more deposits after the Lunar New Year.
According to experts, although deposit interest rates have decreased significantly, the amount of deposits in the banking system is still at a record level. In addition, due to weak credit demand for production and consumption of goods, most banks are not enthusiastic about increasing deposit interest rates to attract deposits. However, credit growth is forecasted to recover in the second quarter, which will reduce system liquidity and may stimulate banks to increase deposit interest rates.
In a newly published analysis report, MB Securities (MBS) believes that the input interest rate is likely to form a bottom in the first quarter and is unlikely to decrease further mainly because credit demand may tend to increase in 2024.
“We forecast that the 12-month deposit interest rate of large commercial Joint-Stock Commercial Banks could increase by an additional 25 – 50 basis points, returning to 5.25% – 5.5% in 2024”, said MBS.
Rong Viet Securities (VDSC) also believes that the opposite adjustment of deposit interest rates by some banks in February, together with the increasing trend of interbank interest rates, may imply that deposit interest rates may gradually increase from the 2nd quarter of 2024, earlier than the previous expectation of analysts group that deposit interest rates may increase from the second half of 2024.
