Earlier, Bidv’s deposit rates for this term were 6 percent per year for institutions and 6.5 percent per year for individuals. This interest rate was also much lower than the State Bank of Vietnam (SBV)’s allowable deposit rate cap of 7 percent per year for 1-6 month term deposits.

Together with one-month term, the deposit rate for terms of from two months to less than six months has also been adjusted down to 6-7 percent per year, terms of from six months onwards at 7-8 percent per year. Meanwhile, the deposit rate for demand deposit was still at the maximum of 1.2 percent per year.

Along with Bidv, Vietnam Commercial Joint Stock Bank for Industry and Trade (VietinBank-CTG) also adjusted down its interest rate benchmark whereby the bank’s saving rate for 1-2 month terms are now only 6 percent per year, lower than the level of 6.5 percent per year earlier. The bank’s longer terms also have relatively low interest rates in comparison with other lenders, at 6.5-7 percent per year.

Previously, on July 11, Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) also unexpectedly lowered its deposit rate hereby the bank’s one-month deposit rate is now only 5 percent per year, down 1 percent from the previous interest rate benchmark.

Thus, in the group of state-owned commercial banks, Bidv, Agribank and Vietcombank are now together applying the deposit rate of 5 percent per year for one-month term, marking the lowest level in the whole banking system and lower than the central bank’s allowable deposit rate cap by 2 percent per year.