Record low savings interest rates

Savings interest rates continued to decline deeply, currently with 12-month term at many major banks to below 6% a year, the lowest in many years.

In recent days, many large banks simultaneously reduced their savings interest rates, especially with the strongest adjustments for terms of 6 months or more.

The latest listed interest rate schedule of Vietcombank – one of the four state-owned banks, decreased by 0.2 percentage points compared to September. The 6-month deposit interest rate at this bank is currently only paid 4%, equal to 1 month interest rates at some other banks. Besides, the highest interest rate that Vietcombank pays to savings customers is 5.8%, applied for a 12-month term.

Similarly, BIDV, VietinBank also decreased by 0.2-0.3 percentage points for all terms. When deposited at the counters of these two banks, the interest rate for money from 1 month to less than 6 months decreased from 3.5-3.8%, to 3.3-3.6%. The interest rate for deposits from 6 months to less than 12 months for a full application is 4.2%. The interest rate from a year or more is now only 5.8%, while it was 6% previously.

A customer saves a bank at a commercial bank. Photo: Giang Huy.

Thus, 3 out of 4 banks with the largest scale in the system, Vietcombank, BIDV, and VietinBank, continued to reduce interest rates, bringing the highest interest rates when deposited at the counter to below 6%. As for Agribank, there has been no new announcement.

This is the first time in many years the “big 4” group of banks has lowered the one-year savings interest rate to below 6%. Currently, apart from state-owned banks, Techcombank and MB are two private banks that are paying only 5.8% interest on 12-month term deposits.

In addition, VPBank and Sacombank also continued to sharply reduce interest rates although these two banks had just had an adjustment in early October.

Specifically, interest rates at VPBank applied to tenors from 6 months and over fell sharply by 0.4 percentage points. The interest rate for the term under 6 months decreased by 0.05 percentage point. Customers who deposit at the counter for 12-month term are only paid from 5.3-5.7% while before it is 5.7-6.2%.

Similarly, Sacombank also deeply reduced interest rates for 6-month term or more by 0.2-0.5 percentage points. For one year term, the interest rate dropped sharply from 6.5% to 6%.

In addition to the new adjustment of some major banks, since the beginning of October, nearly 20 banks across the system have also reduced their interest rates for most of the term, in some places by as much as 0.5 percentage points.

From the end of September, Vietcombank Securities Company (VCBS) predicts that the trend of reducing savings interest rates will continue in the context of ample liquidity, difficult to find lending outputs and credit demand is affected. negative from the epidemic. Accordingly, the average deposit interest rate may drop 0.8-1 percentage points for the whole year.

Quynh Trang


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