Recently, a series of commercial banks, both joint stock and state-owned, have simultaneously reduced the deposit interest rates in VND (VND).Instead of the high-interest rate of 9-10 %/year a few months ago, up to now, the highest deposit interest rate at most joint stock commercial banks, it is only popular in the range of about 8%.

Accordingly, the highest deposit interest rate at some large-scale joint stock banks such as Techcombank, VPBank, or MB currently fluctuates at 7.5-8 %/year.

As for state-owned commercial banks such as Vietcombank, VietinBank or BIDV, the highest interest rate for a 12-month term is now adjusted to 7.2 %/year, down about 0.2% compared to the beginning of the month.

According to market statistics data of Vietcombank Securities Joint Stock Company (VCBS), in April 2023 alone, deposit interest rates decreased by an average of 0.2-0.5% to the same level in April. More declines are recognized for maturities over 6 months.

Notably, at some commercial banks, VCBS found that the reduction could be over 1% in the context of slow credit growth, leading to a small demand for capital mobilization of commercial banks.Read more: Why Vietnam Bank Credit Growth Expected to Slow Down in 2023 » Breaking News, Latest World News Updates - VietReader Viet Nam

Bao Viet Securities Company (BVSC) market analysis data shows that bank deposit interest rates have continued to trend down simultaneously and clearly in the past few days.

The aggregates of BVSC show that the average 12-month deposit interest rate (according to this unit's tracking form) in May 2023 reached 7.61%, down 0.18% from the previous month.

Meanwhile, the average 6-month interest rate reached 7.07 percent, equivalent to a decrease of 0.22% month-on-month.

Calculations show that, with recent successive adjustments, deposit interest rates at banks have decreased by nearly 3% per year compared to the end of 2022 and especially sharply decreased in recent times after when the State Bank has 2 times to reduce operating interest rates.

But many forecasts show that the trend of reducing deposit interest rates will continue for the rest of 2023.

A recent analysis report of VnDirect Securities Company expects the average 12-month deposit interest rate to fall to 7.0% in 2023. If the US Federal Reserve (Fed) reverses monetary policy in the second half of 2023, the State Bank may have another adjustment to reduce operating interest rates.

Also read: Multi-target monetary policy and interest rate reduction requirements of the SBV » Breaking News, Latest World News Updates - VietReader Viet Nam

"Pulling the interest rate down to support the access to capital of businesses and people is a priority management goal. Accordingly, deposit and lending interest rates are forecast to decrease further in the coming period. Operating interest rates may decrease further under favorable conditions." - VCBS Securities commented.

VCBS also believes that lending interest rates are expected to decrease soon. However, the decrease was slower than the deposit rate due to policy lag and high concentration on many priority businesses.