Many commercial joint stock banks have lowered their deposit interest rates since March 6 by 0.2-0.5 percentage points, according to the State Bank of Vietnam (SBV).

The move is expected to help cut costs for banks, reduce lending interest rates, and support businesses.

Four State-owned commercial banks reduced their deposit rates by 0.2 percentage points for terms of six to 12 months while joint stock commercial banks cut their deposit rates by 0.5 percentage points for six to 12-month terms.

As a result, the deposit interest rate at most commercial banks fell to below the benchmark 9 per cent per annum from March 6. Some banks have lowered the deposit rate to 8-8.5 per cent per annum.

The new rate was down 0.5-1 per cent per annum compared to early 2023 and 1.5-2 per cent per annum compared with late 2022.

Sacombank, for example, cut its saving rates for 36-month, 12-month, and six-month terms to 8.4 per cent, 7.9 per cent, and 7.5 per cent per annum, respectively.