Savings interest rates in Vietnam have set a new record low of only 1.9 percent per year for a one-to-two-month term, local media reported Thursday.

Among the four largest state-owned banks, namely Agribank, Vietcombank, VietinBank and the Bank for Investment and Development of Vietnam (BIDV), Vietcombank currently applies the lowest deposit interest rates at only 1.9 percent for the one-to-two-month term.

Even at some small banks, which used to offer deposit interest rates of 9-10 percent per year about a year ago, the rate stands currently at only around 5-5.5 percent per year.

The dropping interest rates made many depositors wonder which term to choose because interest rates for terms of six to 12 months or more do not differ too much, Vietnam News Agency reported.

Vietcombank Securities Company forecasted lending interest rates may decrease by another 1-1.5 percentage points in 2024. Banks in Vietnam will consider further lowering lending interest rates for some firms that have good business prospects to help the borrowers restructure debts and overcome difficult times.