Banks remain an attractive option, so where should you deposit your money?

Right in the first month of 2025, many banks adjusted their deposit interest rates upwards in order to attract idle funds.

Deposit interest rates increased by 0.71% over the past year, contributing to attracting a significant flow of money from the public into the banking system. (Source: Zing)

Interest rates above 6% per year are more commonly applied to longer terms of 12 months or more, such as at Vietnam Export Import Commercial Bank (Eximbank), Global Petroleum Commercial Bank (GPBank), An Binh Commercial Bank (ABBank), etc.

However, by February, the trend in interest rates was showing signs of reversing.

Deposit interest rates for various maturities at Vietnam Agricultural and Rural Development Bank ( Agribank ), Tien Phong Commercial Joint Stock Bank (TPBank), Bac A Commercial Joint Stock Bank (Bac A Bank)... have been adjusted downwards again.

According to the latest data, bank deposits continued to increase sharply in 2024, with total mobilized capital exceeding 12.8 million billion VND, an increase of nearly 12.9% compared to the end of 2023. This strong increase stems from the trend of adjusting savings interest rates starting from the second quarter of 2024.

Statistics from the State Bank of Vietnam show that deposit interest rates increased by 0.71% over the past year, contributing to attracting a significant flow of money from the public into the banking system.

In terms of growth rate, some commercial banks recorded remarkable results such as Military Commercial Joint Stock Bank (MB) with a strong increase of 25.4% compared to 2023, reaching VND 714,066 billion; Vietnam Technological and Commercial Bank (Techcombank) increased by 17.3% to VND 536,746 billion; Saigon - Hanoi Commercial Joint Stock Bank (SHB ) increased by 11.6% to VND 496,106 billion...

However, in terms of capital mobilization scale, the "Big 4" banks still lead the system, even though deposit interest rates have changed little, and some maturities are even lower than the same period last year, amidst a context where small and medium-sized commercial banks tend to continuously adjust savings interest rates upwards to attract deposits.

Accordingly, the "Big 4" banks, including Vietnam Foreign Trade Commercial Bank (Vietcombank), Vietnam Industrial and Commercial Bank (VietinBank), Vietnam Investment and Development Bank ( BIDV ), and Vietnam Agricultural and Rural Development Bank (Agribank), recorded total capital mobilization exceeding 7 trillion VND in 2024, accounting for 56% of the entire industry's market share.

Specifically, Agribank was the bank with the largest deposit mobilization, reaching the 2 trillion VND mark for the first time, an increase of approximately 10% compared to 2023. BIDV recorded 1,929 trillion VND, an increase of 14.5%; VietinBank reached over 1,603 trillion VND, an increase of 13.8%; while Vietcombank mobilized over 1,515 trillion VND, an increase of 8.1% compared to the previous year.

Apart from this group, no other bank has reached the milestone of 1 trillion VND in mobilized capital.

The trend of increasing bank deposits is related to people's cautious sentiment in the face of global economic uncertainties.

Rising inflation, geopolitical instability, and a downturn in many key export markets have led to a flow of capital seeking safer investment channels. In addition, the flexible monetary policy of the State Bank of Vietnam and the stability of the financial system have also contributed to strengthening depositors' confidence.

Economist Dinh Trong Thinh assessed: "In the context of a volatile stock market, real estate facing liquidity difficulties and price fluctuations, while gold and foreign currencies are unstable, increasing risks for investors, bank deposits remain an attractive option."

Source: https://baoquocte.vn/ngan-hang-van-la-mot-lua-chon-hap-dan-nen-gui-tien-o-dau-304409.html