[NEWS] - Savings interest rates dropped sharply

Entering the final quarter of this year, deposit interest rates at most banks continued to be low, with some banks even continuing to decrease in the first days of October.

In the last quarter of this year, deposit interest rates according to normal rules will tend to gradually increase to attract idle capital to banks to serve the lending needs of people and businesses in the final period. year. But this year is different, deposit interest rates at most banks are anchored at low levels and some continue to decrease.

Specifically, according to a survey on the first day of October 2023, deposit interest rates at some banks such as Vietnam Prosperity Joint Stock Commercial Bank (VPBank), Asia Commercial Joint Stock Bank (ACB), Bac A Commercial Joint Stock Bank ( Bac A Bank)... continues to decrease by 0.15 - 0.3 percentage points for many terms.

The highest deposit interest rate at VPBank is only 5.5%/year for 12-month and 13-month terms, instead of the previous 5.8%/year. Tenors from 6-9 months decreased from 5.3%/year to 5.1%/year. This interest rate is also applied by VPBank for long terms of 15, 18, 24, and 36 months.

At ACB, the mobilization interest rate for deposits under 200 million VND, with a 6-9 months term, decreased from 5-2-5.3%/year to 5-5.1%/year. For deposits from 200 million VND to less than 1 billion VND, the above interest rate is added 0.1%/year. Similarly, deposits of 1 billion VND or more will incur an interest rate of 0.05%/year.

Meanwhile, ACB kept the 12-month term interest rate unchanged at 5.5%/year.

At Bac A Bank, the highest deposit interest rate has decreased from 6.4%/year to 6.25%/year applicable to deposit balances over 1 billion VND, terms of 18 months or more.

Bac A Bank lists interest rates for 6-9 months ranging from 5.9-6%/year; For terms of 12-15 months, interest rates range from 6.1-6.15%/year. These levels have decreased by 0.2-0.3 percentage points compared to before.

Previously, deposit interest rates at the "big 4" - 4 state-owned commercial banks - simultaneously dropped to the lowest recorded during the COVID-19 pandemic. The highest interest rate at these 4 banks is only 5.5%/year, applicable for terms of 12 months or more.

Deposit interest rates for terms from 3 months to less than 6 months at the above 4 banks decreased to 3.5%/year; For terms from 6 months to less than 12 months, the rate is 4.5%/year.

Comparing interest rates at banks, the highest 12-month term deposit interest rate is currently listed at Vietnam Construction Commercial Bank Limited (CBBank) at 6.6%/year; Dong-A Commercial Joint Stock Bank (DongA Bank) at 6.55%/year, Bao Viet Commercial Joint Stock Bank (BaoViet Bank), Vietnam Public Commercial Joint Stock Bank (PVCombank), Viet A Commercial Joint Stock Bank (Viet A Bank) at the same rate of 6,5 years...

For a 6-month term, the highest interest rate listed at PVCombank is 6.4%/year, National Commercial Joint Stock Bank (NCB), Lien Viet Post Commercial Joint Stock Bank (LPBank), and CBBank are the same at 6.3%. /year; Dong A Bank 6.2%/year...

At the same time last year, the interest rate of 8%/year was quite popular, applicable to term deposits of 6 months or more. For 12-month terms and longer terms, interest rates even increase to 9%/year and more.

But at present, the highest interest rate at banks is only around 6%/year, much lower than the mobilization level in the same period last year, even lower than during the COVID-19 epidemic. 19 outbreak.

Although the trend of reducing deposit interest rates began to be recorded at the end of the first quarter of this year, after 9 months, banks’ mobilized capital flows continue to grow.

Standing Deputy Governor of the State Bank Dao Minh Tu at the regular Government Press Conference in September 2023 said that by September 30, capital mobilization increased by about 5.9% compared to the end of 2022, total capital Mobilization of commercial banks reached about 12.9 million billion VND.

Regarding lending, as of September 21, credit increased by 5.91%, by the end of September it is estimated to increase by about 6.1-6.2% compared to the end of 2022, the total outstanding debt of the economy is about 12,000,000 VND. 63 million billion VND. The Deputy Governor explained that credit increased but was slower than last year due to objective reasons, external impacts, and difficulties of domestic businesses.

Regarding interest rates, the average reduction for new loans is about 1-1.5%. Currently, the average lending interest rate for short-term loans is about 5.5-7%/year; Medium and long-term loans are about 8.5-10%/year. As for the interest rates on previous loans that have not yet reached their repayment period, there is a delay because commercial banks previously mobilized high-interest rates.

Analysts from VNDirect Securities Joint Stock Company forecast that the average 12-month deposit interest rate will decrease to 6-6.2%/year in the second half of 2023. Meanwhile, lending interest rates may decrease more sharply because the capital costs of commercial banks are decreasing thanks to the impact of the State Bank’s operating interest rate cuts since the beginning of the year and the issuance of Circular 02/2023/TT-NHNN Allows extension of bad debt provisioning.

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Hoang Yen (Collection source)