Deposit interest rate reduced since September 26

The State Bank of Vietnam (SBV) said that some big credit institutions, including State-owned commercial banks, have reduced their interest rates for short-term deposits since September 26.

According to the SBV, the move is a positive and timely solution to implement the government’s direction on running the macro-economy that was materialized by the SBV Governor for the banking sector at Instruction No. 04/CT-NHNN on May 27, 2016 on cutting costs to reduce lending interest rates to prop up business and production activities and the economy.

The new interest rates applied to non-term or below-one-month deposits are at 0.3 percent-0.5 percent a year, while the rates for one-to-below-three-month deposits at 4.2 percent- 4.3 percent per year. The interest rate of 4.8 percent a year is applied to deposits of three to less than five months.

For deposits of five to below six months, the interest rate is 5 percent per year, while the rates of 5.3 percent and 5.5 percent per year are applied to deposits of six to less than nine months and those of nine to less than 12 months, respectively.

From the beginning of this year, the SBV has followed closely the market and flexibly run the monetary policy, support liquidation, keep inter-bank interest rate stable at a low level in order to stablise mobilizing interest rates and ease pressure on lending interest rates as well as ensure to stabilize exchange rate and increase foreign currency reserves

Source: VNA