Bank deposits hit record high despite interest rate cuts

HCMC – Deposits at commercial banks in Vietnam had reached an all-time high of over VND12.3 quadrillion in the year to the end of June despite interest rate cuts, according to the State Bank of Vietnam. Interest rates have consistently edged down due to the central bank’s back-to-back rate cuts. Four major state-run banks – Vietcombank, VietinBank, Agribank and BIDV – currently offer a maximum interest rate of 5.8% per year for a 12-month term. In late August, several banks announced additional deposit rate cuts. MB Bank lowered deposit rates by 20 to 40 basis points for both short and long-term deposits.