One of the Big4, the Bank for Investment and Development of Vietnam (BIDV), earlier this week reduced online deposit rates by 0.2 percentage points for terms of 1-11 months and 24-36 months, and by 0.1 percentage points for 12-18 month term.

The Vietnam Bank for Agriculture and Rural Development (Agribank) cut deposit rates by 0.1 percentage points and only maintained a 3 per cent per year rate for 6-9 month terms from March 15.

Agribank has the lowest 1-5 month term rate among the Big4, at 1.6 per cent per year.

Among the Big4, deposit rates at Vietinbank are slightly higher, at 1.6-5 per cent per year.

Earlier this week, Saigonbank suddenly increased rates for long-term deposits, while reducing short-term rates. Accordingly, rates for 1-12 month deposits were cut by 0.1-0.2 percentage points while 18-36 month term rates increased by 0.2-0.4 percentage points to around 5.4-5.8 per cent per year.

From the beginning of March, 17 commercial banks have adjusted their deposit rates so far, four of which cut rates more than twice, including BaoViet Bank, GPBank, BVBank and PGBank.

Rates for online deposits are currently around 1.6-6.2 per cent per year.

Sacombank offers the highest rate for 36-month term at 6.2 per cent.

The highest rate for 1–2-month term belongs to CBBank at 3.6 per cent, followed by MSB and NCB at 3.5 per cent, Dong A Bank at 3.3 per cent, and VietBank, Viet A Bank and OceanBank at 3.1 per cent.

For 6-month term, ABBank offers the highest rate at 4.7 per cent.

Only eight banks offer rates higher than 5 per cent for 12-month deposits.

According to statistics of the State Bank of Vietnam, deposits at banks were estimated to total VNĐ13.5 quadrillion as of the end of 2023, the highest figure ever recorded.

A report by VNDirect Research forecast that the central bank might cut operating rates by another 0.5 percentage points in the second quarter of 2024, bringing the refinancing rate to 4 per cent and discount rate to 2.5 per cent.

Accordingly, the average 12-month deposit rate is expected to remain low at around 4.5-5 per cent per year in 2024.

The Government also asked for efforts to lower lending rates to support socio-economic recovery.