Large banks continue to reduce interest rates significantly for tenors

DNHN - The Big 4 banks, including Vietcombank, VietinBank, BIDV, and Agribank, decided today (May 26) to continue reducing deposit interest rates.

Among the Big 4, Vietcombank continues to offer the highest interest rate for 12-month deposits at transaction counters, at 7.2% per annum. In the interim, BIDV, Agribank, and VietinBank have reduced the annual interest rate to 6.8%.

Agribank currently offers the lowest interest rate among these institutions. This bank has lowered the annual percentage yield on 12-month term deposits to 6.8% and is continuing to reduce the APR on 13-month terms to 6.6%. Meanwhile, BIDV and VietinBank apply an annual interest rate of 6.8% for all terms of one year or longer.

Since yesterday, the Big Four group has lowered short-term interest rates below the State Bank's annual cap of 5%. Specifically, the interest rate for the 1-month term fell to 4.1% per annum, while the interest rate for the 3-month term fell to 4.6% per annum. This places state-owned banks at the bottom of the banking system in terms of interest rates.

In addition to the Big 4, the majority of other banks have adjusted their interest rates to the State Bank's regulations, lowering them to a maximum of 5% per year for deposit terms ranging from one to six months.

For example, ABBank has capped the annual percentage yield on deposits of less than six months at 5%. Additionally, this bank reduced interest rates for terms of six months or longer by between 0.3 and 0.7 percentage points. For instance, the interest rate for the 6-month term has decreased by 0.3 percentage points to 8.2% per annum, the interest rate for the 12-month term has decreased by 0.5 percentage points to 8.3% per annum, and the interest rate for the 36-month term has decreased by 0.7 percentage points to 8.5% per year.

Additionally, Vietbank has adjusted interest rates for terms of six months or longer. For instance, the annual interest rate for a 12-month term decreased by 0.3 percentage points to 7.8%. The highest interest rate currently offered by Vietbank is 7.9% per annum for a 13-month term.

However, VietABank only decreased the interest rate for terms of less than six months, from 5.5% per year to 5% per year, while leaving the rate unchanged for terms longer than six months.

Small banks such as ABBank, VietABank, GPBank, and VietABank have the highest annual interest rates on the market, ranging from 8.5% to 8.6%.

According to the State Bank of Vietnam, continuing to reduce interest rates is a flexible and appropriate response to the current market environment to support the economic recovery and growth process by National Assembly and Government policy. Government. This also aims to reduce lending interest rates on the market, thereby easing the burden on bank borrowers.

Simultaneously, the reduction of the maximum interest rate on deposits in VND for terms of one to six months helps credit institutions reduce input costs. This creates favorable conditions for the reduction of lending rates, the expansion of capital access, and the promotion of bank lending activities.

Based on economic stimulus measures, it is anticipated that this reduction in interest rates will boost investment and consumption and stimulate economic growth shortly.

P.V (t/h)