VPBank adjusts to reduce deposit interest rates at many terms

Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ) has just adjusted its deposit interest rates down by 0.4-0.6 percentage points at many terms. Specifically, the bank has adjusted the interest rate down from 3-3.3%/year to 2.5-2.7%/year, at 1-month terms.

Banks reduced interest rates by 0.5-0.6 percentage points for 3-month terms to 2.7-2.9%/year. For 6-month and 9-month terms, interest rates were reduced from 4.2-4.6%/year to 4.2-4.4%/year. Deposit interest rates were reduced from 5%/year to 4.5-4.7%/year for 12-month terms.

For deposits of 50 billion VND or more, the interest rate applied is 4.7%/year. For deposits under 10 billion VND, the interest rate applied is 4.5%/year.

For 24-month and 36-month terms, VPBank has adjusted the interest rate down from 5%/year to 4.6-4.8%/year. Of which, deposits under VND10 billion have an interest rate of 4.6%/year. Deposits under VND50 billion have an interest rate of 4.7%/year. Customers depositing from VND50 billion have an interest rate of 4.8%/year. For online mobilization interest rates, VPBank has adjusted down by 0.4-0.6 percentage points, 0.1% higher than at-the-counter deposits.

On the other hand, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has increased its savings interest rates for some terms. Specifically, the interest rate table posted at the counter, the bank increased by 0.2 percentage points to 2.4%/year for interest rates on deposits with terms of 1 to less than 2 months. Interest rates increased by 0.2 percentage points to 2.5%/year for terms from 2 months to less than 3 months.

Interest rates for deposits with terms from 3 months to less than 4 months increased by 0.1 percentage points to 2.7%/year. Interest rates for deposits with terms of 4 months increased to 3%/year. Interest rates for deposits with terms of 5 months increased to 3.4%/year.

For online deposit interest rates, the bank also increased by 0.2 percentage points to 2.6-2.7%/year for 1-2 month terms; increased by 0.3 percentage points to 2.9%/year for 3 month terms, increased by 0.1 percentage points to 3.2%/year for 4 month terms. Interest rates for 5 month terms increased by 0.4 percentage points to 3.6%/year.

Previously, Techcombank also adjusted the deposit interest rate up by 0.2 percentage points for some short terms. Accordingly, customers depositing money under the "Prosperity at the counter" package will enjoy interest rates from 2.55% to 2.77%/year for terms of 1 and 2 months; interest rates range from 2.95% - 3.3% for terms of 3 - 5 months, depending on the customer and the deposit.

For online interest rates, the bank applies interest rates 0.1-0.2% higher per year than at-the-counter deposits. However, Techcombank later reversed and reduced the interest rates for deposits with terms of 1-5 months by 0.2%. Specifically, the interest rate is 2.55% per year for 1-2 month deposits and 2.95% per year for 3-5 month deposits.

KB Securities Vietnam (KBSV) forecasts that the deposit interest rate will continue to move sideways in the low range for most of 2024. The average lending interest rate will have room to decrease by another 0.75-1% .

Source