The race to attract idle cash flow with accounts...

Idle money and the need for financial optimization

CASA (Current Account Savings Account) is a low-cost source of capital, helping banks reduce capital mobilization costs and increase net interest margin (NIM). However, in the period of 2022, when deposit interest rates increased sharply, many banks witnessed a sharp decline in CASA as customers switched to term savings channels with higher interest rates. To compete, banks must waive transfer fees, maintain accounts, and integrate digital services such as bill payments, investments, and shopping on mobile applications.

According to the 2024 financial reports of 27 listed banks, the total balance of non-term deposits (CASA) reached about VND2.5 million billion, accounting for nearly 20% of total deposits at banks. Data from the State Bank of Vietnam (SBV) shows that in 2023, the value of non-cash payments via mobile phones reached VND49 million billion, reflecting a large amount of idle money in people's payment accounts. However, with non-term interest rates fluctuating only from 0.05-0.5%/year, most of this money is almost "sleeping", not generating significant profits.

The race to attract idle cash flow with automatic interest-bearing accounts at banks

Meanwhile, a NielsenIQ survey (Q3/2024) showed that 83% of Vietnamese consumers have a habit of saving and want flexible investment products, while 75% always keep some money in their account instead of keeping it in cash. In particular, 80% of Gen Z customers in Southeast Asia want a digital banking platform that integrates payment, savings, and investment, according to a McKinsey report (2024). These figures show the urgent need for financial solutions that optimize idle cash flow while ensuring liquidity.

Faced with this pressure, banks realized that providing financial products that are both highly profitable and flexible like checking accounts and safe like savings accounts is an effective way to attract and retain customers. This is the premise for the birth of automatic interest-bearing account products.

The birth and explosion of automatic profit-generating accounts

In January 2024, Techcombank launched the Automatic Profit product on the Techcombank Mobile application, with the message "You are free, your money makes profit". This product allows idle money in the payment account to automatically generate profit with a yield of up to 3.2%/year (version 1.0), while still ensuring that customers can spend, transfer money, or withdraw money at any time. The highlight is that the feature only needs to be activated once, does not require a term, and is supported by a modern technology platform.

By January 2025, Techcombank will upgrade to Automatic Profit 2.0, removing the minimum balance threshold (VND 10 million in version 1.0), allowing profit on the entire account balance, with an optimal yield of up to 4%/year - 80 times higher than the normal non-term interest rate. This product has no limit on the balance maintenance period (even 1 day can generate profit) and allows flexible spending 24/7 on the entire balance, up to VND 50 billion. The success of the product is demonstrated by more than 3 million participating customers, optimizing VND 74,000 billion, and creating 1.3 million discussions on social networks.

Techcombank's success has opened up a "new land" in the banking industry, prompting competitors to quickly join.

Launched in March 2025, VPBank 's eKash - Super Profit product allows balances exceeding the minimum threshold (VND 50 million for VPBank Diamond customers) to be automatically transferred to a securities company for investment, with a fixed yield of 3.5%/year. The unique feature is that the principal and interest are returned to the account every morning, ensuring liquidity and daily interest payments - a feature that VPBank is proud to be the "first and only" on the market.

With the Super Yield product, VIB also attracted tens of thousands of customers within 48 hours of launching, thanks to competitive yields and flexible mechanisms similar to Techcombank. This product focuses on customers with large balances, with interest rates increasing over time.

Previously, in October 2024, MSB launched the "Non-Stop Profit" campaign aimed at improving the CASA ratio (which is decreasing due to competition) with a product that allows account balances to automatically generate interest with higher interest rates without a term. Similar to other banks, LPBank offers products with flexible mechanisms, focusing on individual customers with short-term idle cash flow.

Even e-wallets like MoMo with Lucky Bag Plus (deposited at Vietcombank) and ZaloPay with Profitable Balance have joined the race, targeting young users with small balances, yielding around 4%/year; low minimum balance requirements (from only 10,000 VND).

Automatic interest-bearing account products all have some outstanding features such as attractive yields from 3.2-5%/year, much higher than non-term interest rates (0.5%/year) and competitive with short-term savings (1-3 months, about 2-3%/year). Provided by reputable banks, this solution also ensures the same safety as savings deposits.

The difference is that customers can spend, transfer, or withdraw money at any time without interest, unlike term savings. The product is integrated on a mobile application, supporting biometric authentication and 24/7 transactions. With just one activation, the system automatically manages the balance to generate profits, minimizing manual operations.

Prospects and risks

Automated interest-bearing accounts help banks attract low-cost funds (CASA), improving net interest margins (NIM). Techcombank achieved a CASA ratio of 40.5% in Q1/2024, thanks to this product. VPBank and VIB also recorded significant CASA growth. By offering higher yields than non-term interest rates (0.05-0.5%/year), banks encourage customers to maintain long-term balances, reducing the rate of switching to term savings or other investment channels.

Competition between banks does not stop at interest rates but also extends to attractive promotional programs. VIB has launched the “Billion Dollar Deal” program, with the chance to win up to 1 billion VND, along with many other incentives such as free selection of beautiful account numbers and cash rewards for referring friends. These strategies not only help banks attract new customers but also retain existing customers.

In the short term, the trend of automatic interest-bearing accounts will continue to expand, with more banks and e-wallets participating. Yields may increase slightly to compete, but will stabilize around 3-5%/year due to the interest rate ceiling of the State Bank. In the long term, these products will become the standard in the banking industry, integrating more deeply with financial services such as stock investment, insurance, or consumer loans. The Embedded Finance model will reshape the way Vietnamese people manage their finances, promoting a cashless society. With a preference for technology and flexible financial needs, Gen Z will be the main driving force behind this trend, forcing banks to constantly innovate.

The race to attract idle cash flow through automatic interest-bearing accounts is a testament to the transformation of the Vietnamese banking industry in the digital age. This trend has spread, attracting millions of customers thanks to high yields, flexibility, and modern technology. However, to maintain a competitive advantage and meet customer expectations, banks need to invest in technology, raise awareness, and ensure financial security. With VND 2.5 quadrillion in CASA and an increasing need for financial optimization, automatic interest-bearing products are not only a financial solution but also a driving force for a cashless society and digital economic development. In the future, this race promises to continue to be exciting, bringing sustainable value to both customers and the banking industry.

However, in addition to the benefits, experts also warn about potential risks. Transferring money from a payment account to internal investment products or securities companies can bring higher yields, but also comes with market risks. Therefore, customers need to clearly understand the operating mechanism of these products before participating.

Source: https://baodaknong.vn/cuoc-dua-thu-hut-dong-tien-nhan-roi-bang-tai-khoan-sinh-loi-tu-dong-253691.html