Lowered interest rates in the banking sector
In a move to balance capital costs and create room for future lending rate reductions, several commercial banks in Vietnam have slightly lowered their deposit rates since early July. This adjustment aims to maintain competitiveness in capital mobilization while supporting potential cuts in lending rates that can stimulate economic activity.
Bắc Á Bank, for instance, reduced deposit rates by 0.1 percentage point across all terms, while VIB cut its 36-month deposit rate by 0.1 percentage point for deposits ranging from VNĐ1 billion to below VNĐ5 billion. Bảo Việt lowered rates by 0.15 to 0.2 percentage points for terms of six to 13 months. Other banks like LPBank and the National Citizen Bank also made similar reductions.
These changes are aligned with efforts by commercial banks to slightly lower lending rates to boost credit access and support economic growth. Vietcombank, for example, offers home loans at 3.99 percent (valid until 31 March 2026), short-term business loans starting at 4.6 percent, and green SME loans available at 4.2 percent. Fixed rates for mortgages, car, and consumer loans at Vietcombank range from 5.5 to 5.7 percent.
Vietcombank's long-term packages under its "An tấm lãi sảt" (Peace of Mind Interest Rate) programme offer rates ranging from 6.2-9.5 percent for longer-term packages. The average new lending rate at banks is now at 6.23 percent, down 0.7 percentage points since late 2024.
This dual approach of maintaining stable deposit rates while gradually lowering lending rates reflects efforts to balance the interests of depositors and borrowers. The changes are seen as part of a broader strategy to balance capital costs and create room for future lending rate reductions, as well as to maintain competitiveness in capital mobilisation. The strategy also aims to foster a more favorable environment for economic activity, particularly for small- and medium-sized enterprises.
Agribank offers online savings rates ranging from 2.4 to 4.8 percent per annum for terms of 1-18 months, with a highest rate of 4.9 percent for a 24-month term.
[1] Bắc Á Bank reduces deposit rates [2] VIB cuts deposit rate for certain sizes [3] Bảo Việt lowers deposit rates [4] Vietcombank offers home loans at 3.99 percent
- In line with similar adjustments by other banks, Bảo Việt's decision to lower deposit rates by 0.15 to 0.2 percentage points for terms of six to 13 months is part of a strategy to balance capital costs and create room for future lending rate reductions.
- Vietcombank, in addition to offering competitive lending rates, such as home loans at 3.99 percent, has also reduced its deposit rates, like VIB, by offering a lower 36-month deposit rate for deposits ranging from VNĐ1 billion to below VNĐ5 billion.
