''Big 4'' banks sharply reduce savings interest rates

Last week, four state-owned banks, including Vietcombank, VietinBank, BIDV and Agribank, simultaneously reduced deposit interest rates from 0.5% to 1% for all terms.

The highest interest rate when depositing at the counter and online at the "Big 4" group is now only 6.3%, applied for terms of 12 months or more, down 0.5-0.7% compared to May.

For shorter term deposits, customers who deposit for 1 month will only be paid 3.4% when transacting at the counter and about 4% if depositing online. The interest rate for 3-month deposits is around 4.1-4.5% per year. The interest rate for 6 or 9 months deposits is 5-5.5% per year.

VietinBank is the state-owned bank with the strongest adjustment, with a reduction of up to 1%, especially for deposits of 9 months or less. The interest rate when depositing online at this bank is no longer preferential compared to at the counter as before.

As for the private banking group, the mobilization interest rate was also adjusted from 0.1% to 1%, sharply decreasing for terms of 6 months or less. The highest listed interest rate at some large private banks is currently only around 7% per year, such as at ACB, VIB, TPBank, Sacombank, VPBank (amounts under 1 billion VND).

The interest rate cut comes after the State Bank reduced the ceiling interest rate for deposits under 6 months and a type of operating interest rate on June 16. This is the second time in less than a month and the third time this year that the State Bank has reduced the ceiling interest rate for deposits under 6 months, to 4.75% per year.

Reducing the ceiling on mobilization and operating interest rates, according to the State Bank, is "an important step, orienting the market's interest rate reduction trend in the coming time". This is a signal for banks to reduce lending interest rates. This decision was made in accordance with the policy of the National Assembly and the direction of the Government to reduce interest rates, support people and businesses to increase their access to capital, and contribute to the recovery of production and business.

By the end of May, the economy's credit remained gloomy, reaching just over VND12.3 trillion, up about 3.2% compared to the end of 2022. The group of state-owned commercial banks accounted for about 44% of the market share, with credit growth only reaching 35% compared to the level granted by the State Bank. The group of joint-stock commercial banks also only reached half of the assigned "room".

According to VnExpress