HCMC – Huge amounts of cash are still flowing into banks even though interest rates have plunged to new lows.
The State Bank of Vietnam (SBV), the central bank, reported individual savings had soared by 9.95% in the year to September at more than VND6.44 quadrillion. This sum was VND583.5 trillion higher than in late 2022.
Deposits by organizations as of late September had leapt by over VND217.3 trillion against the end of August to VND6.23 quadrillion.
Given the strong rises in individual and corporate deposits, banks have further lowered interest rates in November. Interest rates on Vietnam dong savings for terms under six months now range from 2.6% to 4.75% per year, and from 4% to 5.7% for terms of six months or longer.
Deposits of 12 months or longer come with interest rates of 5% to 6% per year, down by two to four percentage points compared to the same period last year.
Economists attributed the continued rise in deposits at banks to global economic uncertainties which have negatively impacted the domestic economy. Despite the steady decline in deposit rates since March, it is safe to deposit cash at banks.
