Four largest banks simultaneously cut savings interest rates

BIDV on Wednesday announced a new online savings interest rate schedule with the highest reduction of up to 0.4 percentage points per year.

HÀ NỘI — Việt Nam’s four largest banks, Agribank, VietinBank, BIDV, and Vietcombank, have continued to sharply reduce savings interest rates from this week.

BIDV on Wednesday announced a new online savings interest rate schedule with the highest reduction of up to 0.4 percentage points per year. Accordingly, 1-2 month deposits decreased by 0.4 percentage points per year to 2.7 per cent per year; 3-5 month deposits decreased by 0.3 percentage points per year to 3.1 per cent per year. The rates for 6-11 month deposits are 4.1 per cent per year and 5 per cent per year for 12 - 18 month deposits.

Previously, BIDV bank adjusted interest rates twice on December 11 and December 12 this year.

Similarly, at Agribank, online savings interest rates have decreased by 0.5 percentage points per year since Wednesday. This was also the rare time this bank drastically adjusted deposit interest rates. Accordingly, interest rates at this bank for terms of 1-2 months decreased by 0.5 percentage points per year to 2.7 per cent per year. The rates for both terms of 3-5 months and 12-18 months decreased by 0.3 percentage points per year to 3.3 per cent and 5 per cent per year.

Notably, VietinBank on Wednesday made the highest savings interest rate cut by up to 0.6 percentage points per year for terms under 6 months. Accordingly, the bank’s interest rates are only 2.6 per cent per year for 1-2 month terms and 3 per cent per year for 3-5 month terms. For terms of 6-11 months, the decrease is 0.5 percentage points per year to only 4 per cent per year; the decrease for 12-18 months is 0.3 percentage points per year to 5 per cent per year. Terms of 24 months or more remain at 5.5 per cent per year, which is the highest deposit interest rate at this bank.

Previously, Vietcombank also cut the savings rates, making its rates currently the lowest level in the market. 1-2 month deposits at Vietcombank are only 2.2 per cent per year; 3-5 months are 2.5 per cent per year; 6-11 months are 3.5 per cent per year; and 12-18 months are 4.8 per cent per year.

Since the beginning of this month, 14 banks, including HDBank, Techcombank, Eximbank, KienLongBank, SCB, PGBank, MB, MSB, NamA Bank, ABBank, Vietcombank, BIDV, Agribank, and VietinBank, have reduced deposit interest rates.

Last month, there were still a few banks that were willing to pay interest rates of 6 per cent or more for 12-month deposits. Currently, depositors who want to enjoy an interest rate of 6 per cent per year must deposit for longer terms from 15 months or even 24 months or more.

In the context of money surplus at banks due to gloomy lending, experts forecast that in the near future, there might be a large-scale reduction in interest rates. They explained that usually when the group of the big four banks adjusts down interest rates, it will lead to a series of other banks reducing interest rates as a domino effect.