SBV Deposit Rate Cut: BIDV, VPBank Savings Rates Stay Above 7%

Overview

On 18 October the State Bank of Vietnam (SBV) instructed commercial banks to cut deposit rates by at least 0.5 percentage points for terms of six months or more. By 26 October, listed savings rates at most banks had fallen to 7% or below, but actual preferential rates at BIDV (HOSE: BID) and VPBank (HOSE: VPB) remain commonly quoted at 8-9% a year, according to a VnExpress survey.

Key Facts

• SBV directive dated 18 October requires a minimum 0.5% cut to deposit rates for terms of six months and above.
• By 26 October, listed savings rates on most bank websites were at or below 7% a year.
• Saigonbank shows the highest publicly listed rate at 7.9% for a 13-month term.
• Actual mobilisation rates run 1-3 percentage points above listed rates, per the survey.
• BIDV staff in Hà Nội quoted 7.8% a year for deposits under VND 100 million and 8% for VND 100 million or more, with gifts included.
• VPBank staff quoted 9.1% for a six-month term and 9.2% for 12 months, with a minimum of VND 1 million for new customers.
• NCB, Vikki Bank, GPBank, MBV and ABBank also appear among banks quoting preferential rates of 8-9%.

What Happened

SBV has issued a series of circulars and reminders to banks since the start of October urging lower deposit rates, culminating in the 18 October instruction requiring at least a 0.5% reduction on terms of six months or more. The VnExpress survey, based on bank websites and branch staff, found that listed rates have broadly converged below 7%, with Saigonbank the outlier at 7.9% for 13 months.

The listed rate sheet no longer reflects the actual cost of funds. Banks are increasingly using automatic vouchers on their mobile apps, with low or no minimum deposit thresholds, to pay well above the published rate. At Vietcombank, the listed online rate for 6-12 month terms is 3-5.4% a year, but customers depositing from VND 3 million via the app can receive up to 6.8%. SHB lists a maximum online rate of about 6% but applies 8.1-8.3% on app deposits from VND 1 million. NCB lists 6.3% online while app depositors receive 9%. MB lists 5.8% for 12 months but offers 8.2% on app deposits from VND 10 million using a birthday voucher. Branch staff continue to compete for deposits through referral networks and gift programmes.

Market Context

BID closed at VND 33,750 and VPB at VND 23,600 on 26 October. Both are large-cap banks on HOSE and are sensitive to funding-cost expectations, since deposit pricing feeds directly into net interest margin. The gap between listed and effective rates matters for the sector: if actual mobilisation costs stay near 8-9%, the SBV’s 0.5% directive delivers less relief to bank margins than the headline numbers imply. The broader Vietnamese market has been focused on the SBV’s easing bias, and the persistence of high effective deposit rates is a counterweight to that narrative.

Strategic Significance

For long-term investors in BID and VPB, the key issue is the credibility of the deposit-rate ceiling. A directive that lowers listed rates while effective rates remain 1-3 percentage points higher suggests competitive pressure for deposits is still intense, particularly at joint-stock banks such as VPB that rely more on retail funding. BIDV, as a state-owned bank with a large low-cost deposit base, is relatively better positioned, but its branch staff are also quoting 7.8-8% to defend share. If the SBV’s directive is enforced through inspections rather than voluntary compliance, funding costs could fall more meaningfully in the fourth quarter; if not, margin compression will persist into 2027.

What to Watch

• SBV inspection results or further directives on deposit-rate compliance, expected in the coming weeks.
• Q3 2026 earnings releases from BID and VPB, which will show net interest margin trends.
• Monthly SBV credit and deposit growth data for October and November.
• Any change in the SBV policy rate or open market operation terms.
• Foreign-ownership and block-trade filings for VPB, which remains a candidate for further capital raising.