Written by Hai Yen
Thursday, October 3, 2024 | 7:20 PM (GMT+7)
Deposits by Vietnamese citizens in banks in Vietnam reached a record high of nearly VND6.84 billion ($276.17 billion) at the end of July, compared to the end of 2023, according to the latest data from the central bank. It increased by 4.68%.
A customer deposits cash into his bank account. Photo courtesy of Saigon Times.
The central bank reported that personal deposits have increased over the past two years despite low interest rates from late 2023 to early 2024.
Some experts say the increase reflects economic uncertainty and customers’ growing wariness about alternative investment channels such as stocks and real estate.
Furthermore, deposit interest rates have been on the rise since April, encouraging banks to attract more deposits. Annual deposit rates have risen 50 to 100 basis points since the beginning of the year, with some banks’ long-term interest rates exceeding 6%. Some banks offer interest rates of 6 to 6.15% for deposit terms of 18 to 36 months.
In contrast, corporate deposits decreased by 1.07% to VND6.76 billion ($273.34 billion). Experts suggest that this decline may be due to companies seeking higher returns through new investment opportunities.
