BANKS CONTINUE DEPOSIT RATE CUTS

Many banks have continued to slash deposit interest rates following a sharp cut in early July given their ample liquidity.

A report from SSI Securities Corporation showed that last week, four major commercial banks with State holdings lowered their deposit rates by 30-40 basis points for tenors from six to less than 12 months, and kept the rates of long-term savings unchanged. Some other commercial banks reduced the rates of all tenors by some 20 basis points.

The Bank for Foreign Trade of Vietnam or Vietcombank quoted the annual rate for a one-month tenor at 3.5%, and at 4.4% and 6% for the six- and 12-month terms, respectively.

Meanwhile, private commercial banks were divided into two groups over their moves to adjust the deposit rates, with one group setting low rates and the other offering attractive rates.

As for Vietnam Prosperity Commercial Bank or VPBank customers depositing money for a one-month term at the bank’s branches and transaction offices will be entitled to an annual rate of 3.5%. The rate for six-month savings is 5.6%. The rate of the 13-month tenor for deposits worth less than VND300 million is 5.8%.

The savings rates for over-the-counter deposits recorded at Techcombank are even lower, at a mere 2.85% per year for one-month deposits worth less than VND1 billion. The bank’s respective rates for the six- and 13-month tenors are 4.4% and 4.3%.

As recorded at Asia Commercial Joint Stock Bank (ACB), the rates for the one-, six-, and 13-month terms are more attractive, at 3.7%, 5.1% and 6.8%, respectively. Further, customers depositing at least VND30 billion at ACB will enjoy an annual rate of 7.5%, while VPBank only applies its highest annual rate of 6.7% for deposits worth more than VND50 billion.

The deposit rates at Vietnam International Bank are higher than those of the aforesaid creditors. Its rate for one-month savings is 3.95%. Six-month deposits will get a rate of 6%, and the rate of 12- to 13-month savings is up to 6.69%.

Overall, SSI statistics revealed that the four commercial banks with State holdings set the average rates at 3.5-4% for tenors less than six months, at some 4.1-4.3% for six- to- 12-month deposits, and 5.5% for 12- to 13-month tenors. The savings rates at joint stock banks are higher than those at the four State-owned lenders by 0.5-1.5% for all tenors.

Source: The Saigon Times