Reward interest rates for VND will reduce from 7 percent to 6 percent per year for short-term deposits of six months or less.
|Transactions at a bank in HCMC (Photo: SGGP)|
The reward interest rates for US dollars will decrease from 1.25 percent to 1 percent per year, said Governor of the State Bank of Vietnam Nguyen Van Binh.
The State Bank also cut lending interest rate for VND from 9 percent to 8 percent per year in several areas. The rate will be only 7 percent in an agricultural field.
Management interest rate of the State Bank has kept unchanged over the last month but commercial banks have continuously reduced their reward interest rates for VND.
Short term deposits have the reward interest rate lower than the ceiling rate of 7 percent as per regulation. The rate was as low as 5 percent at Bank for Foreign Trade of Vietnam and 5.8 percent at Bank for Investment and Development of Vietnam.