Vietnamese Banks Cut Deposit Rates in August 2026 as Household Deposits Hit Record
This Aveluro analysis covers LPB (LPBank) on HOSE in the Banks sector. The classified event type is macro policy, with neutral sentiment and a deterministic market-impact score of 8.0/10. Source coverage came from CafeF - Tài chính ngân hàng, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Several Vietnamese banks, including LPBank (LPB), VPBank (VPB), SeABank (SSB), BIDV (BID), and Nam A Bank (NAB), reduced deposit interest rates in early August 2026, reversing a period of upward rate pressure. The move comes as household deposits reached a record 17.44 quadrillion VND by end-June 2026, up 5.3% from the start of the year, while credit growth continues to accelerate, creating capital allocation challenges for the banking system.
Key Facts
- LPBank (LPB) cut rates from August 11, 2026: 1-month tenor down 30 basis points to 4.3% per year; 2-6 months down 10 bps; 7-11 months down 20 bps to 6.5%; 12-36 months down 10 bps; 36+ months down 50 bps to 5.37%.
- VPBank (VPB) applied new rates from August 7, 2026: online deposits under 1 billion VND now earn a maximum of 6.2% for 6-13 month tenors; 15-24 months at 6.0%; 36 months at 4.2%.
- SeABank (SSB) cut online deposit rates by 30 bps across 6-36 month tenors, keeping shorter tenors unchanged.
- BIDV (BID) reduced online deposit rates by 60 bps for 6-12 month tenors and 40 bps for 13-36 month tenors.
- Nam A Bank (NAB) joined the trend from August 12, 2026, cutting individual deposit rates by up to 30 bps.
- Total customer deposits at credit institutions reached 17.44 quadrillion VND by end-June 2026, up 5.3% YTD.
- Household deposits rose 7.1% YTD to over 11 quadrillion VND, while corporate deposits grew only 3.09% to 6.37 quadrillion VND.
What Happened
In early August 2026, the deposit rate market reversed course after a period of rising rates. LPBank was among the first to adjust, implementing a new rate schedule on August 11 that reduced rates across all tenors for individual customers. The steepest cut was for deposits of 36 months and above, down 50 basis points to 5.37% per year. VPBank followed with a new schedule effective August 7, lowering rates for both online and over-the-counter deposits. SeABank reduced online deposit rates by 30 basis points for tenors from 6 to 36 months, while BIDV made more aggressive cuts of up to 60 basis points for medium-term tenors. Nam A Bank was the latest to join, cutting rates by up to 30 basis points from August 12.
Despite the rate cuts, savings remain attractive to retail depositors. The State Bank of Vietnam (SBV) reported that total customer deposits hit a record 17.44 quadrillion VND by end-June 2026, up 5.3% from the start of the year. Notably, household deposits grew 7.1%, more than double the 3.09% growth in corporate deposits, and now account for nearly two-thirds of total deposits. In June alone, the banking system attracted an additional 242,000 billion VND in household deposits and 203,000 billion VND in corporate deposits.
Market Context
As of August 16-17, 2026, LPB traded at 52,400 VND on HOSE, VPB at 25,100 VND, SSB at 15,050 VND, and BID at 36,000 VND (up 0.28% on August 17). The rate cuts come amid a broader trend of easing deposit costs, which could support net interest margins for banks. However, the strong deposit growth, particularly from households, suggests that savers remain cautious about other asset classes, such as equities and real estate. The banking sector on HOSE has been under pressure from rising credit demand and potential capital adequacy concerns, making deposit rate trends a key focus for investors.
Strategic Significance
The coordinated deposit rate cuts signal a shift in banks’ funding strategies as they seek to manage costs amid robust credit growth. For LPB, which has been expanding aggressively, lower deposit rates could improve margins, but the sharp cut on long tenors may reduce the attractiveness of long-term savings, potentially affecting funding stability. For larger banks like BIDV, the cuts reflect ample liquidity in the system, despite the record deposit levels. The divergence between household and corporate deposit growth highlights a structural shift in the deposit base, which could influence how banks price loans and manage asset-liability matching. For long-term investors, the ability of banks to maintain deposit growth while lowering rates will be a key indicator of their pricing power and operational efficiency.
What to Watch
- Q3 2026 earnings reports from LPB, VPB, SSB, BID, and NAB, expected in October, to assess net interest margin trends.
- SBV’s monthly credit and deposit data for July and August 2026 to see if deposit growth continues to outpace credit.
- Any further rate adjustments by other banks, which could signal a broader easing cycle.
- Regulatory updates on capital adequacy requirements, which may affect banks’ ability to support credit growth.
- Foreign ownership changes in these banks, as rate cuts and deposit trends may influence investor sentiment.