Some banks suddenly lower deposit rates

29-Jan-2019 Intellasia | Tri Thuc Tre | 6:00 AM Print This Post

After a period of continuous adjustments, deposit rates at some banks unexpectedly declined in recent days.

Specifically, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has just updated its deposit rate quotation, whereby the bank lowered the five-month deposit rate from the regulated ceiling of 5.5 percent per annum (p.a.) to 5.2 percent p.a., deposit rates of other tenors remain the same. New interest rate quotation is applied from 22 January. Previously, at the end of December 2018, BIDV increased the five-month rate by 0.5 percent p.a.

At Vietnam Prosperity Joint Stock Commercial Bank (VPBank), the new interest rate schedule has been applied since 22 January. In particular, the interest rates for tenors from six to 15 months were adjusted down by 0.2 -0.4 percent.

Specifically, the current savings interest rate of 6-month to 11-month tenors are now 7 percent p.a., down 0.2 percent; 12-month interest rate is 7.05 percent p.a.; interest rates for 13-month and 15-month tenors are from 7.2-7.4 percent p.a., both decreased by 0.2 percent compared to the previous quotation.

The highest interest rate at VPBank is currently 8.6 percent p.a., applied to deposits with amount of over five billion dong and tenor of more than 18 months paying interest in arrear.

Meanwhile, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has just adjusted the interest rate quotation with the upside trend.

Specifically, the bank has increased savings interest rates for tenors from one-month to five-months by 0.2-0.3 percent; increased the nine-month rate and the rate for tenors of 13 months or more by 0.1 percent; 12-month rate increased by 0.2 percent. The interest rates for the remaining terms are unchanged. This change is effective from 21 January.

One week earlier, Asia Commercial Joint Stock Bank (ACB) also raised deposit interest rates. Accordingly, the bank raised interest rates for tenors of less than 12 months by 0.3-0.4 percent. Interest rates of 6-month, 9-month tenors are from 6.4-6.7 percent p.a., up 0.4 percent compared to that of December 2018. The interest rate for 3-month tenor with deposit amount of less than 200 million dong is 5.4 percent p.a., an increase of 0.2 percent.

Survey at some other big banks showed that after increasing deposit rates in late 2018, the banks still keep deposit rates at high level. Thus, the reduction of interest rate in some banks such as BIDV, VPBank may be for the purpose of restructuring to meet capital needs, but not reflecting the trend of upcoming short-term deposit rates, since in fact, before the Lunar New Year, it is still a time of high demand for capital in the economy.


Category: Finance, Vietnam

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