Positive rate movement following government commitment

Positive rate movement following government commitment

Banks have taken swift action to reduce their deposit rates following a meeting with the central bank (SBV) on implementing measures to stabilise deposit rates on February 25.

The deposit rate landscape has seen significant positive changes after the prime minister instructed the State Bank of Vietnam to immediately inspect and audit commercial banks regarding the recent hikes in deposit rates via an official dispatch on February 24.

Photo: baodautu.vn

On February 25, BVBank announced a new deposit rate schedule, with a primary rate reduction from six-month terms.

According to the latest deposit rate table, the 12-month term deposit rate decreased from 6.05 per cent, per annum to 5.8 per cent, per annum, while the 15-month term dropped from 6.25 per cent, per annum to 5.9 per cent, per annum.

The 18-month term saw a drop from 6.35 per cent, per annum to 6 per cent, per annum, and the 24-month term reduced from 6.45 per cent to 6.05 per cent, per annum. Notably, the previous 36-month term is no longer available in the new rate schedule.

BVBank, however, still maintains some of the highest deposit rates in the banking system. Currently, the highest interest rate applied by the bank is 6.05 per cent, per annum for 24-month deposits.

At Vietnam Maritime Commercial Joint Stock Bank (MSB), the highest savings rate is now only 5.6 per cent, per annum, applicable for terms of 12 months or longer, with interest paid at maturity.

Eximbank previously listed deposit rates for long-term deposits of 15–34 months at 6.2 per cent–6.5 per cent, per annum, but on the afternoon of February 25, it issued a new interest rate schedule effective from February 26.

According to the new rates, the highest deposit rate is now only 5.8 per cent, per annum for a 24-month term. The 15-month and 18-month terms are set at 5.6 per cent and 5.7 per cent, per annum, respectively.

The 36-month and 60-month terms now have rates of 5.1 per cent and 5.2 per cent, per annum.

Kien Long Bank also presented a new interest rate table, effective from February 26.

Previously, the bank offered a deposit rate of 6.1 per cent, per annum for 12-24 month terms, but under the new schedule, the rate is reduced to 5.7 per cent, per annum for terms starting from 12 months.

On the afternoon of February 25, Vietcombank's long-term deposit rate for a 36-month term returned to 4.7 per cent, per annum, down 0.1 per cent which is also applied for terms from 24 to 60 months.

At southern lender ACB, the highest interest rate is 4.5 per cent, per annum for a 13-month deposit. For deposits surpassing $8 million, the rate applied is 6 per cent, per annum.

Earlier, following the prime minister guidance, SBV held an online meeting with banks on the afternoon of February 25 to implement measures for deposit rate stabilisation.

These measures include reducing operational costs, enhancing IT use, simplifying administrative procedures, and being ready to share bank profits to reduce lending rates, thus helping individuals and businesses access bank credit.

Deputy Governor Pham Thanh Ha noted that the SBV had directed financial institutions to implement synchronised measures to stabilise deposit rates, which have significant impacts on lending rates.

“Commercial banks must seriously implement the instructions of the government and the prime minister, continue to stabilise deposit rates, paving the way to soften lending rates,” Ha said.

According to the Vietnam Banks Association, during six weeks from January 6 to February 14, the interest rate tables of 36 banks saw seven banks raise their interest rates, three banks adjust them down, and two banks both increased and decreased interest rates on certain terms.

The wave of deposit rate hikes by banks has been stronger in the early months of 2025, anticipating an increase in credit demand in the forthcoming quarters. The deposit volume at banks has reached a record high.

According to the SBV’s latest announcement, the deposit volume from individual customers at credit institutions reached $280 billion by the end of November 2024, the highest amount ever recorded, an increase of 7.16 per cent compared to the end of 2023.

VIR