Bank deposit interest rates increase: Still not attractive to people

In Thai Nguyen province, there are currently 29 commercial banks (CBs) with branches operating. Recently, the interest rates of banks have tended to increase gradually. According to the rule, when interest rates increase, people will prioritize the channel of depositing savings in banks with the desire to make a profit. However, in reality, deposits from individual customers in credit institutions have not increased significantly in recent times. The savings investment channel has not yet "attracted" the cash flow of people...

Transaction activities at Military Commercial Joint Stock Bank (MB) Thai Nguyen Branch.

The increase in bank deposit interest rates began to appear from the second half of March 2024 and has been continuous since then. In the first half of August alone (up to August 21), the market recorded 13 banks increasing their savings interest rates. Currently, savings interest rates for 1-3 months are maintained by banks at 1.9-4.3%/year; 6-month term is around 2.9-5.5%/year; 12-month term is around 3.7-6%/year; 24-month term is around 3.9-6.1%/year, etc.

For people, the fact that banks continuously increase deposit interest rates at this time will help their savings to be safe and profitable. However, in reality, up to now, the interest rate increase of banks has not had much impact on people.

Mr. Nguyen Van Cuong, in Group 22, Phan Dinh Phung Ward (Thai Nguyen City), said: I have some personal savings. I am also interested in making a profit to serve future needs. Through monitoring the channel of depositing savings into the bank, I see that although the interest rate has increased, it is not significant so it is not attractive, so I still choose another investment channel.

Sharing the same opinion, Ms. Pham Thi Huyen, in Group 10, Phu Xa Ward (Thai Nguyen City), said: Although the savings interest rate at banks has bottomed out, it is still low. I am carefully studying investment options and will most likely invest in real estate, because this market is now showing signs of recovery.

Ms. Tran Thi Hoai, Service Director of Military Commercial Joint Stock Bank (MB) Thai Nguyen Branch, informed: Deposit interest rates have recently increased, but in fact, they have only increased on a very low base from the beginning of 2024, so it is not enough to impact people to prioritize choosing the investment channel of saving money.

Representatives of some other banks said that the context of interest rate increases at this stage is much different from the end of 2022. That was the period when the interest rate increase race took place, with the mobilization interest rates of many banks reaching 11.5%/year, not to mention many banks also offered promotions and gifts to increase attractiveness to depositors.

Meanwhile, the context of increasing interest rates over the past 4 months has a different characteristic: although banks have adjusted interest rates many times, each time the increase is only very slight, fluctuating from 0.2-0.8%...

Because the increase in deposit interest rates has not attracted many people, banks are currently promoting and advertising the content and benefits of deposit mobilization products; assigning capital mobilization targets to branches and affiliated transaction offices; encouraging customers to open payment accounts and use bank products and services; and improving the quality of payment services.

Banks also provide customers with a variety of products and services, targeting each customer group with savings deposits from low to high value for customers to choose from... Thereby contributing to increasing mobilized capital.

From bank loans, many businesses have invested in expanding production and business. In the photo: Van Dao Automobile Manufacturing and Assembly Mechanical Factory (in Luong Son Ward, Song Cong City) currently creates jobs for over 200 workers, with an average income of 9 million VND/person/month.

As a result, from the beginning of the year to July 31, the total mobilized capital of credit institutions in the province reached over VND113,112 billion, up 5.63% compared to the beginning of the year and up 1.71% compared to the same period last year. The increased mobilized capital helps banks have more capital to create conditions for economic sectors to access loans with low interest rates to invest in production and business development.

Also as of July 31, total outstanding loans in the province reached VND105,040 billion, up 9.31% compared to the beginning of the year and up 3.2% over the same period.

According to forecasts, in the context of continued economic recovery, credit growth will continue to increase in the last months of this year. To ensure liquidity for the banking system, the representative of the State Bank of Vietnam Provincial Branch said that the unit will continue to direct credit institutions in the area to implement many solutions to improve service quality, improve image, build the bank brand to create trust, thereby increasing capital mobilized from customers.

Along with that, we continue to promote propaganda and widely inform the people about the products and services of the Bank and the forms and policies of capital mobilization and deposit attraction; implement solutions to ensure safe, effective and sustainable credit growth along with improving credit quality...

Source: https://baothainguyen.vn/kinh-te/202408/lai-suat-tien-gui-ngan-hang-tang-van-chua-hap-dan-nguoi-dan-1a71b02/