Deposit interest rates heading downwards

Another commercial bank in Vietnam cut its deposit interest rates on March 11, but there is one bank that has maintained its “special interest rate” of 10 per cent per annum for individuals with savings in excess of VND2 trillion ($81.5 million).

Dong A Bank was the latest to cut its deposit interest rate, implementing a uniform reduction of 0.2 percentage points across all deposit terms.

According to its latest schedule, deposit rates are 3.3 per cent per annum for deposits held for one to five months, 4.3 per cent for six to eight months, 4.5 per cent for nine to eleven months, and 4.8 per cent for a 12-month term.

Despite the cut, Dong A Bank has maintained interest rates above 5 per cent per annum for select terms. Its highest rate is for a 13-month term, of 5.1 per cent per annum. Terms spanning 18 to 36 months now carry a 5 per cent annual interest rate. It also continues to uphold a “special interest rate” of 7.5 per cent per annum on deposits held for 13 months or more, with amounts exceeding VND200 billion ($8.15 million).

Certain commercial banks are currently maintaining “special interest rates” notably higher than standard deposit rates. However, to qualify for these rates, customers must deposit substantial sums.

At ACB, a 13-month term deposit earns a “special interest rate” of 5.6 per cent for accounts with deposits exceeding VND200 billion ($8.15 million), compared to a regular rate of 4.5 per cent for this term.

PVCombank offers counter deposit rates ranging from 4.5 per cent to 4.7 per cent per annum for regular customers on a 12-13 month term. However, it also offers a “special interest rate” of 10 per cent per annum on accounts with deposits of VND2 trillion ($81.5 million) or more.

MSB, meanwhile, advertises a counter deposit rate of 4 per cent per annum for a 12-13 month term. Customers depositing VND500 billion ($20.4 million) or more enjoy a rate of 8.5 per cent per annum.

HDBank provides a “special interest rate” of 7.7 per cent and 8.1 per cent per annum for counter deposits on 12 and 13-month terms, respectively. This exclusive interest rate is reserved for accounts with deposits exceeding VND500 billion ($20.4 million), while regular rates for the same terms range from 4.7 per cent to 4.9 per cent per annum.

Dong A Bank stands out as the only bank to lower its deposit interest rates. Consequently, since the beginning of March, a total of nine commercial banks have adjusted their deposit interest rates downwards: PGBank, BVBank, BaoViet Bank, GPBank, ACB, Agribank, VPBank, PVCombank, and Dong A Bank. Notably, BaoViet Bank and GPBank have implemented two rounds of reductions on deposit rates since the start of March.