Deposit interest rates have just hit rock bottom…
From the beginning of 2023, the interest rate level began to cool down. Especially, in the last days of 2023, there were continuous downward adjustments. Not stopping there, although 2014 had not yet finished its first month, interest rates simultaneously hit a new low.
At the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), interest rates have been brought down to very low levels, with terms over 12 months being only 4.7%/year, terms over 6 months being 3%, and terms between 1 and 2 months being only 0.2%.
Meanwhile, the highest rate at Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and Vietnam Bank for Agriculture and Rural Development (Agribank) is all 5.3%/year for long terms.
The mobilization interest rate level continues to set a new bottom but also peaks at the same time, with the highest level reaching 11%/year. Illustrative photo
Joint stock commercial banks also lowered interest rates below 5%/year, such as An Binh Commercial Joint Stock Bank (ABBank) with 4.8%/year (6-month term), Saigon Commercial Joint Stock Bank (SCB) with 4.75%/year, and Vietnam Maritime Commercial Joint Stock Bank (MSB) with 4.3%/year.
The common interest rate is from 5% to under 6%. Only a few units list interest rates from 6%/year or higher such as 6% with National Commercial Joint Stock Bank (NCB), Orient Commercial Joint Stock Bank (OCB), Ocean Bank (Ocean Bank); 6.1% with Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), 6.2%/year with Military Commercial Joint Stock Bank (MB).
In its latest report, VNDirect Securities Company forecasts that the State Bank may consider cutting the operating interest rate by another 0.5% in the second quarter of 2024, bringing the refinancing rate to 4.0% and the discount rate to 2.5%.
In 2024, the average 12-month deposit interest rate is forecast to remain low at 4.5-5%/year. The average lending interest rate will decrease by another 0.5-1% thanks to banks' low capital mobilization costs.
… Just reached the top
Interest rates attract attention as they both hit rock bottom and peak.
Over the past several months, although interest rates have continuously cooled down, the 10%/year level has still been maintained for high-value deposits.
Vietnam Public Joint Stock Commercial Bank (PVComBank) has continuously maintained the highest rate of 10%/year for 12-month and 13-month terms. To enjoy this incentive, customers need to deposit over VND2,000 billion.
From January 15, 2024, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) will apply a new listing schedule. Accordingly, the highest rate at this bank is only 4.7%/year, applied to terms of 12 months or more.
However, Techcombank still maintains a preferential policy of up to 9.5%/year for customers with deposits of over 999 billion VND, 12-month term and a commitment not to close early.
Another bank that also offers incentives for high-value deposits is Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank).
From January 16, 2024, HDBank announced a new listing schedule. Accordingly, for ordinary customers, the highest rate will decrease from 0.2% to 6.2% (18-month term). Interest rates for other terms will also decrease by about 0.2%.
For super-rich customers, HBank reduced interest rates by 0.2% to 8.2%/year. 13-month term deposits with contract value over VND300 billion will receive this incentive. The second highest rate is 7.8%/year applied to 12-month term deposits with value over VND300 billion.
Wooribank, a Korean bank, has attracted the most attention when it has just introduced a savings package with an interest rate of up to 11%/year. This is the highest rate in the entire market at the present time.
To receive this promotion, customers can only deposit a minimum of VND 2 million and a maximum of VND 5 million per month. At the same time, customers must commit to depositing for 2 years. With a term of 12 months, the highest interest rate that customers can enjoy is 10%/year. If customers choose to deposit for a term of 6 months, the highest interest rate is only 9%/year.
For regular term deposits, the highest interest rate is 5.6%/year for terms from 12 months to 24 months. For terms under 12 months, the interest rate is 5.5%/year.
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