From December 24, interest rates for terms of less than 12 months have fallen from 9% to the highest level of 8% a year at banks according to the Decision No.2646/QĐ-NHNN.
From December 24, interest rates for terms of less than 12 months have fallen from 9% to the highest level of 8% a year at banks according to the Decision No.2646/QĐ-NHNN.
Meanwhile, interest rates of long term deposits have still remained unchanged at the lenders, ranging from 10.5% to 11.5% per annum, and there have been no signs that they will plummet. The highest rate of 11.5% is for the 13-month tenor.
Those deposits with rates surpassing the ceiling level have also been revised down by one percentage point for new deposits from today. A teller of a bank branch in Dong Nai Province said rates of short term deposits worth more than VND500 million were fixed at 9.5-10% at the branch on Monday.
When asked why long term rates are still high, Nguyen Phuoc Thanh, general director of Vietcombank, said smaller lenders are unable to lower interest rates as they are thirsty for deposits, while bigger banks do not want to reduce rates for fear of losing depositors.
Similarly, lending rates have also fallen in line with lowered deposit rates at many banks. For instance, Thanh said, lending rates for four priority groups have dropped to below 12%.
(Source: SGT-DNO)
