Major banks continue to sharply reduce deposit interest rates

ANTD.VN - Two state-owned banks, Agribank and Vietcombank, continue to reduce deposit interest rates from September 14.

In particular, Agribank posted a new online deposit interest rate schedule from September 14 with a reduction in all deposit terms.

Specifically, the interest rate for 1-2 month terms decreased by 0.2 percentage points to 3.4%/year; the interest rate for 3-5 month terms decreased by 0.25 percentage points to 3.85%/year.

Deposit terms of 6-9 months also decreased by 0.2 percentage points to 4.7%/year. Notably, terms of 12-13 months decreased by 0.3 percentage points to 5.5%/year, equal to the interest rates of terms of 18 and 24 months.

For deposits at the counter, the highest interest rate has also been reduced to a maximum of 5.5%/year for terms of 12 months or more. For terms of 6 to 11 months, the interest rate mobilized at Agribank is 4.5%/year; terms under 6 months have been reduced to only 3 - 3.5%/year.

Tình trạng dư thừa thanh khoản tiếp tục kéo lãi suất huy động giảm thêm ảnh 1

Excess liquidity continues to push deposit interest rates down further

Along with that, Vietcombank also sharply reduced its mobilization interest rates to the lowest level in the market. Specifically, the online interest rate for 3-5 month terms decreased by 0.5 percentage points to 3.5%/year; the 6-11 month term decreased by 0.2 percentage points to only 4.5%/year; the interest rate for 12-24 month terms decreased by 0.3 percentage points to 5.5%/year.

The two remaining state-owned banks, VietinBank and BIDV, have not yet reduced their deposit interest rates. However, according to tradition, the Big 4 State-owned banks often “join hands” in adjusting interest rates. Therefore, it is likely that these two remaining banks will adjust in the next few days and the market will continue to enter a new wave of interest rate reductions.

In addition to major banks, some private banks also continue to reduce deposit interest rates. For example, PVCombank has adjusted to reduce deposit terms by 0.1 - 0.3%/year from today. Accordingly, interest rates for terms from 6-11 months are down to 6.4%/year, terms from 12-15 months are down to 6.5%/year, terms from 18-36 months are down to 6.8%/year.

Bao Viet Bank also reduced the interest rate for 6-36 month terms by 0.2 percentage points. Accordingly, the online interest rate for 6-month terms is reduced to 6.1%/year, 7-8 month terms is 6.15%/year, 9 month terms is 6.3%/year, 10-11 month terms is 6.2%/year, and 12-36 month terms is 6.5%/year.

According to a survey by reporters, the interest rate on savings deposits for individual customers at the counter is set by banks at 3.0-4.75%/year for terms under 6 months, 6-month terms are around 4.7-6.5%/year, 12-month terms are around 5-6.8%/year, 12-month terms are around 4.2-6.9%/year.

Thus, the 7%/year interest rate has almost completely disappeared from the market.

According to experts at VNDirect Securities, the decline in deposit interest rates is driven by excess liquidity in the system amid weak credit demand and the Government's expansion of fiscal policy.

Experts expect lending interest rates to decrease more significantly in the last months of 2023. The reason is that the capital costs of commercial banks are decreasing thanks to the impact of the State Bank's operating interest rate cuts in the first 6 months of 2023, and the State Bank's issuance of Circular 02 allowing the extension of bad debt provisioning.

“We expect lending rates to decrease by another 100-150 basis points in the coming months and believe that lower lending rates will be a factor promoting the recovery of private consumption and investment,” VNDirect’s report said.

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