Banks cut deposit interest rates early

13-Jun-2012 Intellasia | Saigon Times Daily | 7:01 AM Print This Post

Although the central bank has regulated a deposit rate reduction to 9 percent per year from the current 11 percent to begin on Monday, many local banks had cut deposit interest rates before that.

Citibank Vietnam from last Wednesday applied interest rates from 3.8 percent to 8.45 percent per annum on deposits from one to 12-month terms. Meanwhile, ANZ Vietnam Bank has offered higher rates, at 4 percent, 7.5 percent and 9.5 percent for tenors of one, six and 12 months respectively.

According to an employee of ANZ Vietnam, the deposit rates have been applied for a long time and will be changed daily. Deposit rates will drop further on Monday when the central bank’s deposit rate cap regulation takes effect.

At HSBC Vietnam Bank, interest rates vary following deposit volumes but are still lower than 11 percent. A deposit over VND500 million has the highest rate of 9.34 percent per annum while other tenors have rates from 7-9 percent per year.

Meanwhile, Asia Commercial Bank (ACB) has offered the highest rate of 9 percent for 12-month terms while rates for other tenors range from 8.3-8.8 percent per annum.

The highest deposit rate at Vietcombank has been reduced to 10.5 percent per annum applied only for one-month terms. The rate of 10 percent has been applied for two and three-month terms, while tSTC with six and 24-month terms get a rate of only 9.5 percent.

The central bank last Friday announced it would cut key policy rates by up to two percentage points starting from Monday. Given Circular No. 19/2012/TT-NHNN,

the maximum mobilising interest rate for time deposits from one to 12 months will be 9 percent per annum while tSTC for non-term deposits and deposits under one month will be capped at 2 percent.

Local People’s Credit Funds are allowed to apply the maximum dong mobilising rate of 9.5 percent per annum.

The central bank on the same day released Circular No. 20/2012/TT-NHNN imposing maximum short-term lending rates of 13 percent per annum at credit institutions and foreign bank branches. People’s Credit Funds are allowed to apply the maximum rate of 14 percent.


Category: Finance

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