Deposit interest rates at four major banks hit one-year low

At the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the Joint Stock Commercial Bank for Industry and Trade of Vietnam (VietinBank), and the Vietnam Bank for Agriculture and Rural Development (Agribank), called Big 4, the rates for one- and two-month terms have dropped from 3.4% per annum to 3.3% per annum.

The highest interest rate at these four banks remains at 6.3% per annum for deposits with a term of 12 months.

Following this adjustment, the short-term interest rates for one to three-month terms at Big 4 have returned to the same level as a year ago, while the rates for long-term deposits are about 1% higher.

Previously, many banks that used to offer high deposit interest rates, such as Saigon Commercial Bank (SCB), Bac A Bank, BAOVIET Bank, VietBank, and Orient Commercial Joint Stock Bank (OCB), constantly adjusted down their deposit interest rates.

Currently, no bank is offering an interest rate of 8% per annum, with the common rate for 12-month term at commercial banks ranging from 7% to 7.5%. According to the forecast of VNDirect Securities, the average rate for the term may drop to 6.5-6.8% per annum by the end of 2023 and go even lower in 2024.

The trend of decreasing interest rates has been continuously observed since the end of the first quarter.

According to the State Bank of Vietnam's data, by the end of May 2023, people's deposits reached more than 6.34 quadrillion VND (268 billion USD), up 8.21% compared to the end of last year.