Sharp decrease, some banks only have 3.6%

PVCombank sharply reduced 0.5 percentage points for terms of 6 months or more. Currently, the online mobilization interest rate of this bank is only 7%/year for 6-month term deposits; 7.3%/year for 7-8 month term. Interest rate is 7.4%/year for 9-10 month term; 7.5%/year for 11 month term; 7.7%/year for 12 month term; and 7.8%/year for terms over 12 months.

NamA Bank reduced interest rates by 0.1 to 0.3 percentage points for terms of 6 months or more. Online deposit interest rates for terms of 6 months and 9 months decreased to 7.6%/year. Deposit interest rates for terms of 12-14 months decreased slightly by 0.1 percentage points to 7.7%/year. A similar reduction also brought deposit interest rates for terms of 15 months or more to 7.5%/year.

Meanwhile, BacA Bank slightly reduced 0.1 percentage points for deposits with terms of 6 months to 15 months. The interest rate for deposits with terms of 6-8 months at this bank is 7.6%/year. The term of 9-11 months is 7.7%/year; the term of 12 months is 7.8%/year; the term of 13-15 months is 7.85%/year. In particular, deposits with terms of 18 months or more are adjusted down 0.2 percentage points to 7.9%/year.

This is the first time since early June that BacA Bank, PVCombank and NamA Bank have reduced deposit interest rates, bringing the total number of commercial banks reducing interest rates to 23.

Among the group of banks that reduced interest rates for the first time this month, the "big guy" Vietcombank is notable. Interest rates for 1-2 month deposits at Vietcombank dropped sharply from 4.5% to only 3.6%/year. 3-5 month deposits dropped from 5% to 4.3%/year.

In particular, the interest rate for 6-11 month deposits decreased to 5.2%/year compared to 6%/year last week. The interest rate for 12 months or more also decreased sharply from 6.8% to 6.3%/year.

Agribank reduced interest rates for 1-2 month terms from 4.7% to 4.3%/year; for 3-5 month terms from 4.9%/year to 4.5%/year. At the same time, this bank further reduced interest rates for long terms for the first time this month. For 6-9 month terms, the rate decreased from 6% to 5.7%/year; for 12 month terms or more, the rate decreased from 6.8%/year to 6.3%/year.

Meanwhile, some banks have reduced interest rates two or three times since the beginning of the month. HDBank has just announced a third reduction in deposit interest rates, with a reduction of 0.2 percentage points for deposits with terms of six months or more.

According to the online interest rate table, the interest rate for 6-month term is 7.5%/year; the interest rate for 7-11-month term is only 6.9%/year; the interest rate for 12-13-month term is 7.5%/year. Meanwhile, the interest rate for 18-month term remains at 7.1%/year.

BaoViet Bank has also just reduced interest rates for the second time this month. The specific reduction is up to 0.5 percentage points for online deposit terms. Interest rates for 6-month terms are now 7%/year; for 7-11-month terms are now 7.1%/year after a 0.5 percentage point reduction.

Interest rate for 12-month term decreased by 0.2 percentage points to 7.7%/year; 13-month term decreased to 7.9%/year (highest level); 15-18-month term remained at 7.6%/year.

*Banks are in a fight to reduce interest rates. (Photo: Hoang Ha).*

OCB Bank also reduced interest rates for the second time with a sharp decrease of 0.5 percentage points, remaining at 7.3% and 7.4%/year for 6-month and 9-month terms. 12-15-month terms decreased by 0.3 percentage points to 7.6%/year. Terms of 18 months or more were reduced by 0.2 percentage points to 7.4%/year.

VietA Bank also reduced interest rates for the second time by 0.2 percentage points for terms of 6 months or more. The interest rate for terms of 6-11 months at this bank is 7.4%/year, and for terms of 12-18 months is 7.6%/year. The interest rate for terms of less than 6 months was reduced by the bank to 4.6%/year, lower than the maximum interest rate according to the regulations of the State Bank.

In addition, some banks slightly reduced interest rates for some long terms. LPBank reduced interest rates from 7.9% to 7.6%/year for 18-month terms.

Among the Big4 banks, BIDV kept the interest rate at 4.5%/year for 1-3 month terms while reducing it from 4.7% to 4.65%/year for 3-5 month terms.

VietinBank reduced the interest rate for 1-2 month terms from 4.5% to 4.25%/year, and for 3-5 month terms from 4.9% to 4.65%/year. VietinBank kept the old interest rate for the remaining terms.

Since the beginning of June, the market has recorded 23 banks reducing deposit interest rates, including: Agribank, Vietcombank, BacA Bank, NamA Bank, PVCombank, TPBank, BaoViet Bank, GPBank, BIDV, Sacombank, VIB, HDBank, NCB, OCB, BVBank, VPBank, SCB, VietA Bank, TPBank, SHB, HDBank, KienLongBank, and Saigonbank.

Of which, BaoViet Bank, VIB, Saigonbank, TPBank, NCB, VietA Bank, SCB, OCB, VietA Bank are the banks that have reduced interest rates twice since the beginning of the month.

Particularly, HDBank reduced interest rates 3 times in June.

HIGHEST DEPOSIT INTEREST RATES AT BANKS ON JUNE 19 (%/year)
BANK	1 MONTH	3 MONTHS	6 MONTHS	9 MONTHS	12 MONTHS	18 MONTHS
ABBANK	4.75	4.75	8.2	8.2	8.3	8.5
GPBANK	4.75	4.75	8.1	8.2	8.3	8.4
CBBANK	4.75	4.75	7.85	7.95	8.15	8.25
VIETBANK	4.75	4.75	7.8	7.7	7.8	7.8
NCB	4.75	4.75	7.7	7.7	7.9	7.8
NAMA BANK	4.75	4.75	7.6	7.6	7.7	7.5
BACA BANK	4.75	4.75	7.6	7.7	7.8	7.9
OCEANBANK	4.75	4.75	7.6	7.7	7.8	8.1
HDBANK	4.75	4.75	7.5	6.9	7.5	7.1
EXIMBANK	4.75	4.75	7.5	7.5	7.6	7.6
VPBANK	4.75	4.75	7.4	7.7	7.4	6.6
VIETA BANK	4.6	4.6	7.4	7.4	7.6	7.6
VIB	4.75	4.75	7.3	7.4		7.5
TPBANK	4.75	4.75	7.3		7.3	7.3
SEABANK	4.75	4.75	7.3	7.33	7.8	7.41
PGBANK	4.75	4.75	7.3	7.3	7.5	7.5
MSB	4.75	4.75	7.3	7.3	7.4	7.4
OCB	4.75	4.75	7.3	7.4	7.6	7.4
SHB	4.75	4.75	7.2	7.2	7.7	7.7
LPBANK	4.55	4.55	7.2	7.2	7.3	7.6
BVBANK	4.4	4.7	7.1	7.4	7.7	7.8
SCB	4.75	4.75	7.08	6.96	7.45	7.25
BAOVIETBANK	4.75	4.75	7	7.1	7.7	7.6
SAIGONBANK	4.75	4.75	7	7.1	7.4	7.4
PVCOMBANK	4.25	4.25	7	7.4	7.7	7.8
TECHCOMBANK	4.45	4.45	6.9	6.9	6.9	6.9
KIENLONGBANK	4.75	4.75	6.7	6.9	7.1	7.3
SACOMBANK	4.75	4.75	6.6	6.9	7.2	7.35
MB	4.7	4.7	6.5	6.6	7.2	7.3
BIDV	4.5	4.65	6	6	6.8	6.8
VIETINBANK	4.5	4.65	6	6	6.8	6.8
AGRIBANK	4.3	4.5	5.7	5.7	6.3	6.3
VIETCOMBANK	3.6	4.3	5.2	5.2	6.3	6.3

The State Bank of Vietnam has decided to adjust interest rates, effective from June 19, 2023; specifically as follows: Decision No. 1123/QD-NHNN dated June 16, 2023 on refinancing interest rates, rediscount interest rates, overnight lending rates in interbank electronic payments and loans to cover capital shortages in clearing payments of the State Bank of Vietnam for credit institutions. Accordingly, the overnight lending interest rates in interbank electronic payments and loans to cover capital shortages in clearing payments of the State Bank of Vietnam for credit institutions are reduced from 5.5%/year to 5%/year; the refinancing interest rate is reduced from 5.0%/year to 4.5%/year; the rediscount interest rate is reduced from 3.5%/year to 3.0%/year.

Decision No. 1124/QD-NHNN dated June 16, 2023 on the maximum interest rate for deposits in Vietnamese Dong (VND) of organizations and individuals at credit institutions as prescribed in Circular No. 07/2014/TT-NHNN dated March 17, 2014. Accordingly, the maximum interest rate applicable to demand deposits and deposits with terms of less than 1 month remains at 0.5%/year; the maximum interest rate applicable to deposits with terms from 1 month to less than 6 months decreases from 5.0%/year to 4.75%/year, while the maximum interest rate for deposits in VND at People's Credit Funds and Microfinance Institutions decreases from 5.5%/year to 5.25%/year; the interest rate for deposits with terms of 6 months or more is determined by credit institutions based on the supply and demand of capital in the market.

Decision No. 1125/QD-NHNN dated June 16, 2023 on the maximum short-term lending interest rate in VND of credit institutions for borrowers to meet capital needs for a number of economic sectors and industries as prescribed in Circular No. 39/2016/TT-NHNN dated December 30, 2016. Accordingly, the maximum short-term lending interest rate in VND of credit institutions for borrowers to meet capital needs for a number of economic sectors and industries is reduced from 4.5%/year to 4.0%/year; in particular, the maximum short-term lending interest rate in VND of People's Credit Funds and Microfinance Institutions for these capital needs is reduced from 5.5%/year to 5.0%/year.

Source