Dozens of commercial banks cut savings interest rates

Illustrative image (Photo: VNA)

Dozens of commercial banks have simultaneously decided to reduce deposit interest rates from May 25, after the State Bank’s decision to cut policy interest rates.

After maintaining the highest deposit interest rate among the commercial banks for several days, at 9.2% per year, An Binh Commercial Joint Stock Bank (ABBank) has lowered its savings interest rates by up to 0.8%.

According to the interest rate for online saving and ABBank App, the savings interest rates for terms from 15 months and above, which stood at 9.2% per year for a long time, dropped sharply to 8.4% per year for the 15-month term (down 0.8%), and 8.5% per year for the terms of 18 months and above (down 0.7%).

Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) also cut savings interest rates for the 4th time in a row since early May, down between 0.1 – 0.4%.

From May 26, Saigon Thuong Tin Bank Commercial Joint Stock Bank (Sacombank) also decreased deposit interest rates by between 0.1-0.4% for some terms. Meanwhile, Asia Commercial Joint Stock Bank (ACB) cut its savings interest rates between 0.2%-0.6%, with the sharpest decline recorded in the 12-month term with a drop of 0.6% to only 6.6% per year.

Notably, most banks reduced deposit interest rates for the three-month term, with the strongest decrease recorded at ACB (down 0.7 percent).

The group of the four biggest State-owned banks (Big 4) also continued to reduce deposit interest rates from May 26, with reduced rates from 0.1 – 0.7% per year.

Currently, the highest interest rate applied to this group is 7.2% per year.

The State Bank of Vietnam (SBV) has announced two decisions to further reduce policy interest rates, which will become effective from May 25, 2023.

According to the first decision, the interest rates of the overnight interbank electronic payment and compensatory lending for the capital shortfall in offset payments by the SBV will be reduced from 6.0% per annum to 5.5% per annum.

Under the second decision, the maximum interest rate of non-term and term deposits of less than one month remains unchanged at 0.5% per annum. The maximum interest rate of deposits with terms from one month to less than six months will be reduced from 5.5% per annum to 5.0% per annum.

The central bank’s decision to further cut the policy interest rates aims to stimulate economic growth, support liquidity in the interbank market, and provide favorable conditions for borrowing and lending activities within the banking system./.