VPBank Adjusts Deposit Rates: 36-Month Term Cut by 1.4 Points

Overview

VPBank (VPB) has revised its online deposit rate schedule, increasing rates for 6-13 month terms by 0.2 percentage points but cutting the 36-month rate by 1.4 percentage points to 4.2-4.3% per year. This adjustment reflects a strategic shift in the bank’s funding strategy, aiming to attract shorter-term deposits while reducing costs on longer tenors.

Key Facts

• VPBank raised online deposit rates by 0.2 percentage points for terms of 6-13 months, now at 6.2% per year for deposits under VND 10 billion.
• The 36-month term 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 terms remain unchanged at 4.75% per year.
• Rates for 15-24 month terms are unchanged at 6.0% per year for deposits under VND 10 billion.
• For deposits from VND 10 billion to under VND 50 billion, the 6-13 month rate is 6.3%, 15-24 month is 6.1%, and 36-month is 4.3%.
• The highest online rate is 6.3% per year for 6-13 month terms on deposits of VND 10 billion or more.
• The 36-month rate is now up to 2 percentage points lower than the 6-13 month rates.

What Happened

VPBank, officially known as Vietnam Prosperity Joint Stock Commercial Bank, has updated its online deposit rate schedule, effective as of the latest announcement. The bank increased rates for 6-13 month terms by 0.2 percentage points, bringing them to 6.2% per year for most deposit tiers, while significantly reducing the 36-month rate by 1.4 percentage points to 4.2-4.3% per year, depending on the deposit amount.

This adjustment was communicated through the bank’s official rate table, which applies to online deposits. The bank kept rates unchanged for 1-5 month terms at 4.75% and for 15-24 month terms at 6.0% (or 6.1% for larger deposits). The changes create a steeper yield curve, with short and medium-term rates higher than the long-term rate, a notable inversion of typical term structure.

Market Context

VPB shares closed at VND 25,850 on August 10, 2026, on the HOSE. The banking sector has been navigating a competitive deposit market, with some banks offering promotional rates up to 9% for certain products. VPBank’s move to raise short-term rates while cutting long-term rates may be aimed at managing net interest margins (NIM) and aligning with the State Bank of Vietnam’s (SBV) guidance on reducing long-term deposit costs. This adjustment could influence investor sentiment on VPB’s funding costs and profitability.

Strategic Significance

For long-term investors, this rate adjustment signals VPBank’s proactive liability management. By lowering long-term deposit rates, the bank reduces its cost of funds on longer tenors, which could support NIM if loan yields remain stable. The increase in short-term rates may help retain deposits in a competitive environment, but it also raises short-term funding costs. The steeper curve suggests VPBank expects interest rates to remain stable or decline in the medium term, making long-term deposits less attractive. This strategy could enhance profitability if asset yields do not fall proportionately.

What to Watch

• VPBank’s Q3 2026 earnings report, expected in October, to assess NIM trends and funding cost changes.
• SBV policy rate decisions and any further guidance on deposit rate caps.
• Competitor reactions: whether other major banks adjust their deposit rates similarly.
• Deposit growth figures for VPBank in the coming months to gauge customer response to the new rates.
• Any changes in VPBank’s loan growth and asset yields that could offset the funding cost adjustments.