Big4 banks join in reducing deposit interest rates

Vietnam Joint Stock Commercial Bank for Investment and Development ( BIDV – HoSE: BID) has just had its first reduction in deposit interest rates since the beginning of November. Previously, on November 14, BIDV had adjusted deposit interest rates for terms from 6-36 months, by 0.2%/year.

Specifically, the bank has just announced a reduction in interest rates for deposits with terms from 6 to 36 months. Accordingly, interest rates for deposits with terms from 6 to 11 months at BIDV have decreased by 0.1 percentage points to 4.5%/year. Interest rates for online deposits with terms from 12 to 36 months have decreased by 0.2 percentage points to 5.3%/year.

Interest rates for terms from 1 to 5 months at BIDV remain unchanged. Of which, interest rates for terms from 1 to 2 months are 3.2%/year, and for terms from 3 to 5 months are 3.5%/year.

Not out of the game, a Big4 giant has also made a move to reduce deposit interest rates, which is the Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ).

Specifically, the interest rate for online deposits with a term of 1-2 months decreased by 0.2% to 3.2%/year. The interest rate for deposits with a term of 3-5 months decreased by 0.15% to 3.6%/year.

Interest rates for 6-9 month deposits decreased by 0.1 percentage points to 4.5%/year. Vietinbank kept the interest rates for 12-18 month deposits at 5.3%/year and 24-36 month deposits at 5.5%/year.

Thus, in the Big4 group alone, Vietcombank currently has the lowest interest rates for 6-9 and 12-18 month term deposits at 3.9%/year and 5%/year, respectively.

Previously, Techcombank also reduced its deposit interest rates for the third time this month. Specifically, Techcombank's 6-month term interest rate decreased by 0.1 percentage points to 4.55-4.8%/year.

In particular, customers are usually applied an interest rate of 4.55-4.6-4.65%/year, corresponding to the deposit milestone of under 1 billion VND - from 1 billion VND to under 3 billion VND - from 3 billion VND and above. The highest interest rate of 4.8% at this term is applied to Private customers depositing an amount of 3 billion VND or more.

Techcombank's interest rates for terms of 12 months or more also decreased by 0.1 percentage points to 4.95-5.2%/year.

Despite the continuous drop in savings interest rates, people still choose to deposit money in banks. According to new data released by the State Bank, the amount of deposits of residents at credit institutions increased by VND15,935 billion in September, reaching a record of over VND6,449 trillion. This increase is 11 times higher than the same period in 2022.

Compared to the end of 2022, the total amount of deposits from residents increased by more than VND583 trillion, equivalent to 9.95%. Deposits from economic organizations increased by VND217 trillion, to nearly VND6,232 trillion. This increase is double the same period in 2022.

Compared to the end of 2022, the amount of deposits of the business sector increased by nearly 277 trillion VND, equivalent to 4.65%, twice the growth rate in the same period in 2022. In total, deposits of residents and economic organizations in the banking system by the end of the third quarter reached 12.68 million billion VND, an increase of nearly 7.28% compared to the beginning of the year .

Thu Huong

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