Deposit interest rates continue to drop

Although deposit interest rates are currently at low levels, since the beginning of December this year, State-owned commercial banks have continued to cut interest rates by 0.1-0.2 percentage point further for many terms compared to before.
Specifically, Vietcombank reduced the interest rate for the 36-month term from 5.6 percent per annum to 5.4 percent annum; for the 24-month one from 5.9 percent per annum to 5.7 percent per annum. The interest rates of six to nine-month terms were also lowered from 4.1 percent per annum to 4 percent per annum by this bank.

Agribank also slashed interest rates for terms from six to eleven months from 6 percent to 4 percent per annum and those for terms from 12 to 24 months from 5.8 percent per annum to 5.6 percent per annum.

Similarly, Vietinbank has also cut 0.1-0.2 percentage points depending on the term compared to the interest rate chart in November. Particularly, the interest rates decreased to 3.1 percent per annum for one to two-month terms, to 3.4 percent per annum for three to five-month terms, and 4 percent per annum for six to eleven-month terms. Currently, the highest deposit interest rate at Vietinbank is only 5.6 percent per annum for long terms from 12 to 36 months, instead of 5.8 percent per annum as before.

According to the State Bank of Vietnam, in the past months, although the need to invest in corporate bonds in the market had appeared, deposits into the banking system still increased. Although the deposit interest rates have dropped continuously since the beginning of the year, so far, bank mobilization has climbed by 10.65 percent compared to the end of last year.

By Hanh Nhung – Translated by Bao Nghi

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