LPBank, VPBank, OCB, Sacombank Cut Listed Deposit Rates; Real Rates Stay at 8-9%

Overview

A fresh round of listed deposit-rate cuts has swept Vietnamese banks, with LPBank (LPB) reducing 13-18 month rates by 0.6 percentage points to 6.3% per year and OCB, VPBank and Sacombank lowering schedules by roughly 0.5 points. The reductions, reported by Tuổi Trẻ, matter less than they appear: promotional codes and preferential programs keep effective rates paid to larger depositors at 8-9% per year, meaning funding-cost relief for the banks is narrower than the published tables suggest.

Key Facts

• LPBank cut its steepest rates, 13-18 month tenors, by 0.6 percentage points per year, leaving the 24-month rate at 6.3% per year.
• OCB reduced rates by 0.5 percentage points per year on tenors of 6 months and above effective 20 October, with the top listed rate at 6.8% per year for deposits of VND 500 million and above over 36 months.
• VPBank’s highest listed rate is 7.4% per year on 15 and 18 month tenors; sub-6-month rates sit at 4.75% and 6-to-under-12-month rates at 6.8% per year.
• Sacombank’s top rate for deposits under VND 50 million is 6.7% per year after adjustment.
• BVBank and KienlongBank each cut 0.5 percentage points per year across 6-24 month and 6-60 month tenors respectively; VietBank’s 18-36 month rate fell to 5.8% per year.
• A Hồ Chí Minh City depositor reported earning 9.4% per year on a VND 200 million deposit on 19 October via a promotional code and prepaid-interest structure, against a displayed app rate of 8.98%.
• A Hà Nội depositor placing VND 100 million at VPBank on 21 October saw a 15-month rate of 7.4% per year, down about 1.5 points from 7.8% on a 6-month tenor two weeks earlier.

What Happened

According to Tuổi Trẻ’s survey of bank rate schedules, the cuts were concentrated among mid-sized and smaller institutions. OCB lowered rates by 0.5 percentage points per year on tenors of 6 months and above from 20 October, with online deposits under VND 100 million now paying 6% for 6-11 months and 6.3% for 12 months. BVBank and KienlongBank applied similar 0.5-point reductions, while VietBank, NCB and Bac A Bank also trimmed schedules, leaving NCB’s top rate at 6.2% and Bac A Bank’s at 6.6% for 12 months.

At LPBank, the deepest adjustment hit the 13-18 month band, down 0.6 points, with the 24-month rate at 6.3% per year. VPBank’s digital app shows a maximum of 7.4% per year for 15 and 18 month tenors. The article’s central finding, however, is the gap between listed and paid rates: branch staff direct customers to enter promotional codes in banking apps, and prepaid-interest structures allow interest to be calculated on a grossed-up principal, lifting realised yields to 9% or more even where the app displays 8.98%. Depositors quoted in the article describe receiving 9-9.4% per year on placements of VND 100-200 million. The article does not name the specific banks offering the highest promotional rates.

Market Context

LPBank (LPB) trades on HOSE at VND 40,400 as of 25 October, alongside OCB at VND 10,800, Sacombank (STB) at VND 68,500 and VPBank (VPB) at VND 24,100. The rate cuts come as Vietnamese lenders balance thinner net interest margins against the need to defend deposit share, particularly among smaller banks that lack the low-cost current-account balances of the large state-owned institutions. Listed-rate reductions of this size typically signal regulatory pressure or an easing liquidity backdrop, but the persistence of 8-9% effective rates implies competition for term deposits remains intense, especially at private joint-stock banks.

Strategic Significance

The investment question is whether headline rate cuts translate into cheaper funding or merely reshuffle costs into promotional channels. For LPB, VPB, OCB and STB, the answer determines net interest margin trajectory into 2027. Banks that can fund themselves through digital channels and transaction accounts benefit disproportionately, while those relying on rate promotions to hold depositors will see less margin relief than the published tables imply. The gap between listed and effective rates also complicates any reading of State Bank of Vietnam policy signals, since official schedules understate the true cost of deposits across the system.

What to Watch

• Third-quarter and fourth-quarter net interest margin disclosures from LPB, VPB, OCB and STB, showing whether funding costs actually fell.
• State Bank of Vietnam commentary or directives on promotional deposit rates and prepaid-interest practices.
• Monthly deposit-growth data from the SBV, indicating whether rate cuts slow household savings inflows.
• Any regulatory tightening on promotional codes or bonus-rate programs, which would force effective rates toward listed levels.
• Subsequent rate-schedule revisions at LPBank and VPBank, given their position as price leaders in this round.