Illustrative image (Photo: VNA)

Hanoi (VNS/VNA) - Many banks have cut their deposit interest ratessignificantly this month due to a credit growth slowdown in the wake of thepandemic.

Private banks such as VPBank, MBBank, ACB and Viet Capital Bank havereduced their interest rates by 0.2-0.7 percentage points per year.

VP Bank has lowered its interest rate on savings accounts by 0.2-0.7 percentagepoints for many terms, with six-month deposits standing at 6.6 percent a yearand 6.7-7.2 percent a year for 12-month deposits.
For the bank’s online deposits, the interest rate has also dropped by 0.35percent to 6.9-7.2 percent per year for 18-36-month term deposits.

MBBank has also announced a new deposit interest rate list this month,down 0.1-0.5 percentage points from the previous rate. 

꧒ For six-month term deposits, the interest rate at the counter hasdecreased by 0.4 percentage points to 6 percent per year while the rate for13-month deposits has been lowered by 0.1 percentage points to 6.6 percent.

ACBhas lowered its interest rate on savings accounts for almost all terms by0.25-0.55 percentage points per year, with 12-month deposits staying at only6.7-7 percent per year, depending on the total of deposits.

ꦜ State-owned banks have also dropped their deposit interest rates.

Vietcombank has lowered its deposit interest rates by 0.2-0.3 percentage pointsfor periods of six months or more. An individual account will now get a 6.6 percentinterest rate per year for a 12-month deposit instead of 6.8 percent.

Vietinbank has cut its interest rates by 0.2 percentage points to 6.6 percentfor terms of six to less than 12 months, keeping the rate for a 12-month fixeddeposit unchanged at 6.8 percent.

BIDV has cut its rates by 0.05-0.2 percentage points for most periods, exceptfor 12-month deposits which is still 6.8 percent.

Previously, banks cut short-term deposit rates after the central bank in Marchreduced the cap on interest rates on VND deposits of one to six monthsfrom 5 percent to 4.75 percent.

The cut came as the country’s bank credit growth in the first quarter of thisyear was only 1.1 percent, slowing significantly against the 2.28 percent ratein the same period last year, with many firms scaling down their business dueto the adverse impacts of the COVID-19 pandemic.

Experts said decreasing credit demand meant banks had high liquidityand therefore don’t need to mobilise more cash.

🏅 However, they said, if the pandemic worsens, more companies would needcredit to save their businesses and at that time deposit interest rates couldrise./.