At the end of last week, some banks again lowered their savings deposit rates, following the previous sharp decline on July 6th, mainly for short-terms of less than six months.
Specifically, at the interest rate table applied from 0:00 on July 9th, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) said that the bank only pays three percent per annum interest rate for one-month deposits with pre-paid interest, and 3.1 percent per annum for two-month deposits. Deposits with terms from two months to five months are applied an interest rate of 3.2 percent per annum. If interest is paid at the end of the term, interest rates are from 3.15 to 3.7 percent per annum depending on the amount of deposits, with terms ranging from one to five months.
Compared to the interest rate table applied from July 6th to 8th, the latest interest rate table applied at Techcombank is 0.1 0.15 percentage point less. Meanwhile, compared to the rates applied before July 1st, the savings rates for terms of less than six months are currently 0.25 0.3 percentage point lower.
For medium and long-term deposits, the rates at Techcombank are only offered at 4.8 5.7 percent per annum. VIP customers enjoy a plus of 0.1 percentage point, which means that the highest rate is only 5.8 percent per annum. This is the lowest rate offered in the system at the present time on similar term.
From July 1st until now, Techcombank has changed its interest rate table five times, all of the times are downward adjustments, and it is the bank that has made the most adjustments in the period.
For state-owned banks including Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), and Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank), which often apply the lowest savings rates in the system, the current deposit interest rates fluctuate from 3.7 to four percent per annum for terms from one to five months, from four to 4.5 percent per annum for terms from six to less than 12 months, and from 5.7 to 6.1 percent per annum for terms from 12 months or more. These rates are significantly higher than Techcombank’s.
For private joint stock banks, the deposit interest rates for terms of less than six months are currently far lower than the ceiling rate of the State Bank of Vietnam (SBV), popularly raging at 3.7 four percent per annum. The rates are 5.5 6.5 percent per annum for terms from six to less than 12 months, depending on the amount of deposit, and around seven percent for terms from 12 months or more. Compared to the interest rates applied before July 1st, the current rates of these banks are about 0.4 0.5 percentage point less, even one percent less at some banks.
In addition, the savings interest rates of foreign currencies such as euro, Japanese yen, and Australian dollar were also significantly reduced. In the previous time, many banks paid up to one percent per annum for long-term foreign currency deposits (such as for Australian dollar or Japanese yen), some banks have currently cut down to zero percent per annum, or maintained the rates at 0.05 0.5 percent per annum.
On the interbank market, the interest rates that organisations borrowed each other all dropped to less than one percent per annum for both dong and US dollar. These record low rates have been maintained for many weeks. According to observers, the reduction of interest rates in both market 1 and market 2 shows a very abundant liquidity in the system.
Recently, the SBV’s leader said that any bank applying for a credit growth room expansion was considered for approval, and state-owned banks were not among those banks. It is known that the credit growth target of the banking industry, as well as directed by the prime minister, is no less than 10 percent this year. However, more than two quarters have passed, and the rate is just above three percent.
