According to the latest information from the State Bank announced on October 2, the total amount of money people deposited in banks reached a record level of 6,838 trillion VND by the end of July.
This is the highest figure ever, reflecting the trend of people seeking safety in depositing money in banks in the context of unstable economic factors. On the other hand, the amount of deposits from organizations recorded a slight decrease, showing that the capital allocation of businesses tends to shift to other investment channels.
Specifically, compared to the end of 2023, the amount of deposits from residents increased by VND 305,672 billion, equivalent to an increase of 4.68%. Compared to the same period last year, this amount increased sharply, by VND 448,820 billion.
This is a positive signal of people's confidence in the banking system, even though the economy still faces many challenges such as inflation, rising commodity prices, and stock market volatility.
Interest Rate on deposits, after a long period of maintaining at a record low due to the impact of loose monetary policy, has begun to be adjusted since April. Many joint stock commercial banks have increased deposit interest rates to attract more capital. This is a step to support credit activities and restore the economy after the pandemic. In this context, banks have also introduced more flexible savings products, combined with preferential policies to meet the increasingly diverse needs of depositors.
In addition, the increase in deposits may also reflect people's caution in the face of financial market fluctuations and macroeconomic instability, as many people choose to keep money in banks instead of investing in high-risk channels such as real estate or stocks.
According to Lao Dong, in September 2024, the market had 12 banks increasing interest rates, including: Dong A Bank, OceanBank, VietBank, GPBank, Agribank, Bac A Bank, NCB, OCB, BVBank, PGBank, Nam A Bank; with the increasing trend mainly in short terms.
In previous months, the market recorded an average of 20 banks increasing interest rates, some banks increased interest rates by nearly 1% in just one adjustment, many banks increased interest rates consecutively many times in a month.
At the end of 2023, the market witnessed the general level of interest rates falling sharply to below 5.0%/year. Not only that, in the first weeks of 2024, interest rates continuously hit new lows, the lowest being 4.9%/year.
However, in the last months of 2024, interest rates recorded a sharp increase. Interest Rate increased beyond 6.0%/year at many banks.
(See more high interest rates HERE)
