However, competition for medium- and long-term capital remains active at some lenders through high rates and promotional schemes, while mortgage rates continue to stay elevated, with floating rates at some banks reaching 14-15% per year, maintaining pressure on borrowers and the property market.

Lingering competition for long-term capital

Despite the broader downward trend, several medium-sized and smaller banks are still competing to attract medium- and long-term deposits.

Saigonbank recently raised its 13-month online deposit rate from 7% to 7.9% per year from May 6, currently the highest on the market. At the same time, it cut rates for 7-11 month deposits to 6.2% and reduced 18-36 month rates to around 6.1-6.5% per year.

Within less than a month, Saigonbank’s 24-36 month rates have fallen by about one percentage point overall, reflecting a strategy focused on selected strategic tenors.

Bac A Bank also increased its 13-month deposit rate for deposits under 1 billion VND to 7% per year while leaving other rates unchanged.

Banks are also using promotional programmes and flexible savings products to attract and retain customers.

Vietcombank recently launched a “flexible principal withdrawal” product on VCB Digibank offering rates of up to 7.4% per year, allowing customers to partially withdraw principal while retaining interest on the remaining balance.

Meanwhile, digital bank Cake by VPBank is offering bonus rates of up to 1.5 percentage points for first-time fixed-term deposit customers. Combined with base rates of 7.2-7.4% per year, actual returns could reach up to 8.9% annually.

Most of these incentives, however, are temporary or conditional and do not reflect a broad rebound in market rates.

While eight banks offered deposit rates of 7% or higher for 12-month terms in early April, only a few now maintain such levels, including ACB at 7.3%, MBV at 7.2%, and LPBank at 7-7.1% per year.

Short-term deposit rates for one- to five-month terms remain near the SBV ceiling of 4.75% per year.

Vietcombank Chairman Nguyen Thanh Tung said a new wave of deposit rate competition is unlikely this year, adding that state-owned banks are coordinating to maintain reasonable rates and support monetary market stability.

Homebuyers still under pressure

While deposit rates are easing, lending rates, especially mortgage rates, remain high, leaving borrowers struggling with financing costs amid rising property prices and stagnant income growth.

According to a recent 2026 housing market outlook report by VIS Rating, average mortgage rates this year are expected to remain 3-4 percentage points higher year-on-year as real estate credit stays tightly controlled and banks’ funding costs remain elevated.

VIS Rating said that although housing supply is improving, high borrowing costs and rising property prices will continue weighing on demand. Apartment absorption rates fell to 95% in 2025, reflecting increasingly cautious buyer sentiment.

In Hanoi and Ho Chi Minh City, apartment prices have risen around 20% year-on-year, making home ownership increasingly difficult, especially for young and middle-income buyers.

Commercial banks currently offer fixed mortgage rates of around 8-10% per year, while floating rates after promotional periods can climb to 14-15% annually.

Several banks, including Vietcombank and Techcombank, have introduced home loan packages starting from 3.99% per year, though these preferential rates only apply during initial fixed-rate periods before switching to floating rates. Agribank’s mortgage rates currently range from 8-9.8% annually.

Although banks continue rolling out low introductory-rate packages to stimulate demand, most incentives only last six to 24 months. Afterward, loans shift to floating rates based on deposit rates plus margins of 3-5 percentage points, potentially pushing borrowing costs sharply higher.

Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors, said mortgage rate fluctuations directly affect people’s ability to buy homes, especially young buyers and middle-income households that rely heavily on bank loans.

He advised buyers to carefully assess long-term repayment capacity rather than focusing solely on initial promotional rates.

According to Pham Chi Quang, Director of the SBV’s Monetary Policy Department, if lower deposit rates continue spreading through banks’ funding structures, lending rates could have more room to decline in the coming period.

However, the SBV stressed that interest rate cuts must go hand in hand with exchange rate stability and maintaining the attractiveness of the Vietnamese dong to limit dollarisation./.