Dong saving rate decreases 1-2pct

The implicitly negotiable interest rate between the bank and customers has decreased 1-2 percent from previously. Even, some other banks also lowered the listed interest rate to below the cap of 14 percent per year.

A staff of a Hanoi-based commercial bank on July 6 confirmed the interest rate for 2-3 month terms fell by 1 percent to stand at 17 percent per year for deposit worth from 300 million dong and higher. But, for 1-month term, the bank is still applying the deposit rate of 18 percent per year.

Another bank based in Hanoi’s Nguyen Luong Bang Street is also offering the dong saving rate at 18 percent per year, down by 0.5 percent per year from previously. According to the bank’s staff, the bank’s highest saving rate for 1-3 month terms is still 18.5 percent per year for over one billion dong deposit and it is 18.5-18 percent per year for 500 million dong-less than one billion dong deposits and 17.5 percent per year for less than 500 million dong deposits.

This is the common tendency because other lenders also adjusted down the deposit rate. Depending on demands in each period, the deposit rate may be up to 20-21 percent per year or also down to only 8 percent per year, the staff said.

In HCM City, the dong deposit rate has been also cooled down. A transaction office’s director located on 3/2 street, district 10 said previously, the maximum negotiable deposit rate was up to 20 percent. But, currently, the highest benchmark is only 19 percent per year. Some other large banks also said that they lowered the negotiable saving rate to hover 16-17 percent per year.

Explained the cool-down tendency of deposit rate currently, Eximbank’s deputy general director said the interbank interest rate recently decreased to only 16 percent per year. Therefore, banks have to think twice about the high deposit rate because they would not be much profitable when lending in the interbank market.

The State Bank of Vietnam (SBV)’s purchase of dollar for reserve recently has provided a significant amount of dong via open market operations (OMO). At the same time, banks also raised a considerable amount of capital, so the banks’ liquidity has been improved.

Therefore, the slight reduction of deposit interest rate now is understandable, he said.

Currently, the OMO interest rate has been adjusted down to 14 percent per annum (p.a.) instead of 15 percent p.a previously.

The cool-down of deposit rate affected more or less the lending rate. According to the survey launched by VnExpress, the lending rate has been adjusted down by 0.5-1 per year to hover 22 percent per year (previously it was 23 percent per year).

Vietnam Export Import Commercial Joint Stock Bank (Eximbank-EIB) by the end of June started to adjust down the dong deposit rate whereby the bank’s highest saving rate is now only 13.97 percent per year (for 1, 2 and 3 month terms), applying for promotion programme of “five big special offers with C/Ds at Eximbank ” and with common saving, the highest deposit rate is now at 13.85 percent per year.

Earlier, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) with “Tiet kiem boi thu” programme offered the saving rate at 13.7-13.9 percent per year for 1-week and 3-month terms while 4-month and 6- month terms enjoy the saving rate of only 13.5 percent per year. – Vnexpress

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