More commercial banks cut deposit rate

Since the beginning of this year, several commercial banks have lowered their deposit interest rates for the Vietnamese dong because of abundant liquidity while lending remained stagnant.
After Tet holidays, more banks posted a interest rate cut; some even having reduced their rates to below the ceiling rate regulated by the State Bank of Vietnam.
Since March, Techcombank has cut its deposit interest rates for one-month, two-month, and three-month terms twice to 4.3 percent, 4.44 percent, and 4.43 percent per annum respectively, a decrease of 0.1-0.2 percent compared to the previous rates. The highest rate of the bank is 6.36 percent per annum for 24-month term with interest withdrawal at the end of the term.
Other banks, namely Agribank, Eximbank, and Dong A Bank, have also slashed their interest rates by 0.2-0.4 percent per annum compared to those in late February.
Of which, Eximbank is offering an interest rate of 4.5 percent, 4.8 percent, 5.6 percent, and 6.1 percent per annum for one-month, three-month, nine-month, and 12-month terms respectively with interest paid at the end of the term.
Dong A Bank is applying an interest rate of 4.5 percent per annum for two-month term, 4.9 percent for three-month term, 5.3 percent for six-month term, and 6.6 percent for 12-month term.
Meanwhile, MB Bank currently proposes fairly low rates, ranging from 4 percent to 4.7 percent per annum for one-month to five-month terms. The highest rate of 7 percent per annum is applied for 12-month term upwards.
Recently, Sacombank has lowered its rates for some terms. Accordingly, interest rates for four-month and five-month, and six-month terms are at 4.8 percent, 5 percent, and 5.1 percent per annum respectively. It offers highest rate of 7.7 percent per annum for 13-month term.
Meanwhile, state-owned banks, including VietinBank and BIDV still remain their rates unchanged.
Bankers explained that they cut deposit interest rates because inflation has eased while source of capital at banks remained abundant with total loan book higher than before but still lower than deposit base.

By Nhung Nguyen – Translated by Thuy Doan

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