VPBank Cuts 36-Month Deposit Rate by 140bps, Raises Mid-Term Rates

Overview

VPBank (VPB) has revised its online deposit rate schedule, increasing rates for 6-13 month tenors by 0.2 percentage points but slashing the 36-month rate by 1.4 percentage points to 4.2-4.3% per year. The adjustment, applied to its online savings products, reflects a strategic push to attract mid-term deposits while discouraging long-term fixed-rate funding. This rate decision comes amid a competitive Vietnamese banking sector where deposit rates are being actively managed to balance liquidity and margin.

Key Facts

• VPBank raised online deposit rates by 0.2 percentage points for tenors of 6-13 months, now at 6.2% per year for deposits under VND 10 billion.
• The 36-month online deposit rate was cut by 1.4 percentage points to 4.2% per year for deposits under VND 10 billion, and 4.3% for deposits from VND 10 billion.
• Rates for 1-5 month tenors remain unchanged at 4.75% per year.
• Rates for 15-24 month tenors are unchanged at 6.0% per year (6.1% for deposits of VND 10 billion and above).
• For deposits of VND 10 billion to under VND 50 billion, mid-term rates are 6.3% per year, and long-term 36-month rate is 4.3%.
• The highest online rate is now 6.3% per year for 6-13 month tenors on deposits of VND 10 billion or more.
• The spread between 6-13 month and 36-month rates has widened to 2 percentage points.

What Happened

VPBank, officially Vietnam Prosperity Joint Stock Commercial Bank, has updated its online deposit rate schedule, effective as of early August 2026. The bank increased rates for 6-13 month tenors by 0.2 percentage points, bringing them to 6.2% per year for most deposit tiers, and to 6.3% for deposits of VND 10 billion and above. In contrast, the 36-month tenor saw a sharp reduction of 1.4 percentage points, now yielding only 4.2-4.3% per year depending on the deposit amount.

The bank kept rates unchanged for 1-5 month tenors at 4.75% and for 15-24 month tenors at 6.0-6.1%. This tiered adjustment means the 36-month rate is now the lowest in the schedule, significantly below the mid-term rates. The move appears designed to discourage long-term fixed-rate deposits, which are costlier for banks in a declining rate environment, while attracting funds at shorter tenors to manage liquidity and interest rate risk.

Market Context

VPB shares closed at VND 25,850 on August 10, 2026, on the HOSE. The banking sector has been actively adjusting deposit rates in response to the State Bank of Vietnam’s (SBV) monetary policy stance and liquidity conditions. VPBank’s rate cut on long-term deposits aligns with a broader trend of banks shortening liability durations to protect net interest margins. The increase in mid-term rates, however, suggests competition for stable funding remains intense, particularly for tenors that are popular with retail depositors.

Strategic Significance

This rate adjustment reflects VPBank’s strategic focus on optimizing its funding structure. By lowering the 36-month rate, the bank reduces its cost of long-term funds, which is beneficial in a scenario where interest rates are expected to decline further. Simultaneously, raising mid-term rates helps retain and attract deposits in the 6-13 month bucket, which are more flexible and less costly than longer tenors. For investors, this indicates proactive liability management, which could support net interest margin and profitability in the coming quarters. The move also signals VPBank’s confidence in its liquidity position, as it is willing to trade off long-term deposit stability for lower funding costs.

What to Watch

• VPBank’s Q3 2026 earnings report, due in October, to assess the impact on net interest margin and funding costs.
• Any further adjustments to deposit rates by VPBank or peers, indicating a shift in competitive dynamics.
• SBV policy rate decisions or open market operations that could influence deposit rate trends.
• Changes in VPBank’s loan growth and deposit mix in the coming months.
• Market reaction of VPB stock to the rate change, particularly any sustained movement in share price.