Major banks go ahead with deposit rate cut plans

A bank teller counts Vietnamese banknotes – Photo: Thanh Hoa

A report from Techcom Securities Company Limited shows that the Asia Commercial Bank (ACB) has lowered the rate by 10 basis points for deposits of one month to 5.1%, while hiking the deposite rate for the three-month tenor by 10 basis points to 5.4%.

Meanwhile, VietinBank has slashed interest rates for deposits of six and 12 months by 30 basis points. The bank also adjusted up the interest rate for savings of 24 months by 10 basis points to 6.8%.

Additionally, the local market has seen the Bank for Investment and Development of Vietnam (BIDV) revising down its deposit rate for the five-month tenor by 30 basis points to 5.2%.

The deposit rate cuts came at the bank system’s peak season of payments on the occasion of the Lunar New Year holiday. Notably, the highest deposit rates at some major banks are a mere 6.8%-6.9%.

However, many small banks which hold low share proportions of the local market are offering the highest deposit rates of 8.5%-8.7% for longer terms if deposits are big enough.