Deposit rates at Vietcombank lowest among banking system

A transaction office of Vietcombank (Photo: VNA)

Cutting interest rates by 0.1 - 0.2% per year, Vietcombank reduced the rate for one- and two-month deposits to 1.7% per year from 1.9% per year.

Likewise, the rate for three-month deposits was brought down to 2% per year and for six- and nine-month ones to 3% per year.

The highest interest rate, applied to 12-month and longer terms, at this bank was also cut from 4.8% per year to 4.7% per year.

The deposit interest rates at Vietcombank are currently the lowest among the Big 4, the four biggest State-owned commercial banks, as well as the banking system.

Earlier, the Vietnam Bank for Agriculture and Rural Development (Agribank), another in the Big 4, also lowered the rate for one- and two-month deposits from 2.2% per year to 2% per year.

Interest rates for all deposit terms remain unchanged at the other two, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), on January 12.

VNDIRECT Securities JSC forecast interest rates for 12-month deposits will be kept at low levels, about 5% per year from the end of 2023 until the end of 2024. Given this, it expected lending interest rates will also continue the downward trend as a result of falling capital costs recently.

Economic expert Assoc. Prof. Dr. Dinh Trong Thinh perceived that deposit rates are unlikely to go down further this year, but there remains room for lending rates to reduce more. When production and business activities get better and capital demand increases, bank interest rates may bounce back accordingly./.