Vietnamese banks cut short-term deposit rates

14:10 | 23/03/2020 Economy

Commercial banks in Vietnam have announced cuts to their interest rates on Vietnamese dong deposits with terms of less than six months, following the central bank’s move to slash policy rates.

The SBV cuts its policy rates starting from March 17 in an attempt to support the economy which has been hurt by the COVID-19 outbreak

Vietcombank lowered its interest rate on three-month deposits from 4.8% to 4.7% while the rate on deposits of 12 months or longer remained unchanged at 6.8%.

Vietinbank cut its rates on deposits of three to less than six months by the small margin of 0.05 percentage points to 4.75%.

As one of the banks with the most attractive deposit rates, VietCapitalBank also reduced its rates to 4.7% for deposits of one month to less than six months from the previous figure of 4.85%-4.9%.

Deposit rates at Sacombank dropped to 4.3%-4.7%, depending on the terms, from the previous rates of 4.9%-5%.

ACB trimmed its short-term deposit rates to 4.5%-4.75% while VIB reduced it rates by 0.4 percentage points to 4.6%.

Similar cuts were also announced by Techcombank, LienVietPostBank and SeABank.

On March 16, the State Bank of Vietnam cut the refinance rate from 6% to 5% and the discount rate from 4% to 3.4%, in an effort to bolster an economy affected by the coronavirus outbreak.

The central bank also reduced the overnight lending rate in the inter-bank market from 7% to 6% and lowered the caps on the deposit interest rate by 0.25-0.5 percentage points.

Theo NDO