Bank deposit interest rates continue to fall
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Many banks have cut deposit interest rates this month, bringing the average rate to below 9.
The rate is half a percentage point lower than at the start of this year for terms of less than six months, and one point lower for longer tenors.
Some banks offered nearly 10% earlier this year.
As of May 15 more than half the banks offered rates of up to 7-8%, and the rest, slightly higher.
After a period of rapid growth at the end of 2022, deposit interest rates began to plateau at the beginning of this year as liquidity became abundant, even excessive, according to analysts, especially compared to the end of October last year when a run occurred on Saigon Commercial Bank (SCB).
Besides, bank lending has eased off, meaning funds mobilization is not an urgent need for them.
Deposits of less than six months carry a maximum interest rate of 5.5%.
Banks that offer the highest rates, ranging from 8.5% to 8.9%, include SeABank, ABBank, VietABank, HDBank, and VietBank.
Questions & Answers
Q.By how much have deposit interest rates fallen for shorter-term deposits since the beginning of the year?
By how much have deposit interest rates fallen for shorter-term deposits since the beginning of the year?
For deposits with terms of less than six months, the average rate is half a percentage point lower than at the start of this year. This contributes to the overall drop in average rates to below 9%.
Q.Why have deposit interest rates started to fall or plateau this year?
Why have deposit interest rates started to fall or plateau this year?
Analysts suggest that deposit interest rates began to plateau at the start of this year because liquidity became abundant, or even excessive. Also, banks' need for funds mobilization has reduced as lending has eased off.
Q.Which banks are currently offering the highest interest rates for deposits?
Which banks are currently offering the highest interest rates for deposits?
SeABank, ABBank, VietABank, HDBank, and VietBank are among the banks offering the highest deposit interest rates. Their rates range from 8.5% to 8.9%.
Q.What is the maximum interest rate permitted for deposits of less than six months?
What is the maximum interest rate permitted for deposits of less than six months?
Deposits with terms of less than six months currently have a maximum permitted interest rate of 5.5%. This is a regulated cap on shorter-term savings products.
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