The deposit interest rate for Vietnamese dong will be reduced to 9% per year from the current 11% from next week, Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh said at a National Assembly meeting on June 7.
Binh said that the Prime Minister approved the SBV's rate cut, which it decided on with 14 commercial banks at a meeting last week.
On June 7 morning, dong interest rates at the large Vietcombank and the Asian Commercial Bank (ACB) declined unexpectedly on most long and short term deposits after a long time at 11%.
The highest deposit rate at Vietcombank was reduced to 10.5% per year, applied only for one-month terms. The rate of 10% was applied for two- and three-month terms while those with six and 24-month terms got a rate of only 9.5%.
The interest rate at ACB also reduced to 10.8% for two, three, six and nine-month terms. However, the bank still kept the ceiling rate of 11% for 12 and 13-month terms.
Commercial banks often offer the interest rate at the highest level allowed by the SBV to attract depositors.