Mobilizing simultaneous interest rate cuts
The State Bank of Vietnam (SBV) has just announced a series of information showing that from the end of February to March 7, 2025, 16 commercial banks have adjusted their deposit interest rates down to 0.1 - 0.9%/year, depending on the term and deposit products.
Notably, in this list, there are banks such as Ban Viet (BVbank), Hai Phong (MSB), Viet Nam Thuong Tin (Vietbank), Saigon Cong Thuong, International (VIB), Bao Viet (BaovietBank), Kien Long (KienlongBank), Bac A, Viet A, Thinh Vuong and Phat (PGbank), Import-Export, Loc Phat (LPbank), Nam A, Saigon - Hanoi (SHB), Quoc Dan (NCB) and VCBNeo.
This is considered a notable move, as banks tend to reduce interest rates in many forms: counter deposits, online deposits, savings deposits for members, payment deposits... The time of application of the reductions is from the end of February to the beginning of March 2025 and mainly focuses on medium and long terms, from 6 to 36 months.
Interest rate reduction rate for each bank
In the above group, the Bank of Vietnam (BVbank) led the decline when it cutting 0.1 - 0.4% for counter deposits for 6 - 60 month terms, and at the same time cutting up to 0.4% for online deposits for many different terms. MSB (MSB) reduced 0.2% for both counter and online 13-36 month terms.
Vietnam Thuong Tin Bank (Vietbank) adjusted from 0.1 - 0.4% for short terms (1 - 5 months) and full terms of 12 months, applicable to both counter and online. Meanwhile, Saigon Bank for Industry and Trade reduced 0.2% for the 12-36 month term for all forms of deposits.
For the International Bank (VIB), the reduction of 0.1 - 0.2% applies to most terms of 1 - 36 months, including iDepo deposits. Similarly, Kien Long Bank (KienlongBank) has decreased twice in a row, a total of 0.2 - 0.9% depending on the 1-60 month term. Bao Viet Bank (BaovietBank), Bac A, Viet A also decreased by 0.1 - 0.3% for many different terms.
In addition, the Bank for National Defense and Development (PGbank) cut 0.2% for the term of 24 and 36 months; Loc Phat (LPbank) reduced 0.1% widely (1 - 60 months) for both Diamond, Gold, Ruby members and online deposits. The Bank of South Asia applied a reduction of 0.1 - 0.4% for most short and medium terms. SHB decreased further for 12, 18, 24, 36-month terms (from 0.2 - 0.3%), while the 6 - 11 month term decreased by only 0.1%.
Notably, the Import-Export Bank has made up to 5 adjustments in the period of February 25 - March 7, 2025, focusing mainly on the 15 - 36 month terms with a reduction of 0.6 - 0.8%. Some savings programs also reduce 0.1 - 0.2% for regular customers and 0.1 - 0.1% for customers over 50 years old. Finally, VCBNeo reduced 0.15% for all deposit products from 6 months or more.
Market trends and opportunities for depositors
The fact that 16 commercial banks simultaneously reduced interest rates immediately after the direction from the Prime Minister and the State Bank clearly shows their efforts to stabilize interest rates, support businesses and people. This move not only helps reduce capital costs for production and business activities, but also contributes to maintaining the economic recovery momentum.
In the medium term, many experts predict that deposit interest rates may continue to fluctuate, but there is a unlikely trend of a sudden increase in the coming time. Thanks to this adjustment, the interest rate level is expected to continue to be stable, creating conditions for capital flow into production and business, while better supporting the economic recovery.
