After the State Bank of Vietnam (SBV) lowered the ceiling levels of interest rates, local commercial banks have also slashed deposit rates, with those at Orient Commercial Bank (OCB), Saigon Commercial Bank (SCB) and Nam A Bank down by 0.1-0.3 percentage points.
SCB has cut the rates for deposits of one to five months to 3.95% and for the six-month tenors to 6.1%, down 30 basis points compared to the previous rates, Phap Luat Online reported.
At Nam A Bank, the annual rate for deposits of 14 months is now 7%, down 10 basis points against the previous rate.
Similarly, OCB has lowered its deposit rates for tenors of one month to 3.75%, of three months to 3.9% and of six months to 5.8%, down 0.2 percentage points.
Customers making deposits worth less than VND500 billion for tenors of 12 months at OCB will receive an annual rate of 6.3%. The rate of the 12-month tenor for deposits worth VND500 billion or more is 8.1%.
On September 30, the central bank reduced a series of key policy rates, with the annual refinancing rate reduced from 4.5% to 4% and the rediscount rate cut from 3% to 2.5%.
The overnight lending rate in the interbank market was also reduced to 5% from 5.5%, while the interest rates for buying valuable papers through the open market were lowered from 3% to 2.5%.
Moreover, the highest rates for non-term deposits and savings of less than one month are now 0.2% per year, while the maximum annual deposit rate for savings of one month to less than six months was cut from 4.5% to 4%.
Apart from this, the highest rates for deposits of one month to less than six months at people’s credit funds and micro credit institutions dropped to 4.5% per year.
In addition, the central bank lowered the maximum dong lending rate for short-term loans to 4.5% per year from 5%, while the highest dong lending rates for short-term tenors at people’s credit funds and micro credit institutions dropped from 6% to 5.5% per year.
This article was originally published in Sgtimes