People continue to deposit money in banks despite falling interest rates

According to the latest statistics announced by the State Bank on customer deposits at credit institutions as of the end of May 2023, the total means of payment at credit institutions, including deposits of economic organizations, deposits of residents and money from issuance of valuable papers reached more than 14,517,831 trillion VND, an increase of 2.05% compared to the end of 2022.

Meanwhile, deposits of economic organizations flowing into the banking system decreased by 3.45% to VND5,748,486 billion, reflecting the difficult economic picture and the idle cash flow of enterprises is no longer abundant.

On the contrary, the amount of deposits from the population poured into the banking system increased nearly twice as fast as the credit growth of the economy, to VND 6,347,545 billion, and this increase has tended to increase gradually since September 2022 despite strong adjustments in bank interest rates. This figure has exceeded the deposit balance of economic organizations since January 2023.

Total means of payment and customer deposits at credit institutions (Source: SBV).

In the first 5 months of 2023, people's deposits in the banking system increased by nearly 400,000 billion VND.

Currently, the long-term mobilization interest rate at many banks has been adjusted down sharply by 1-2.5 percentage points compared to the end of December 2022. The common savings interest rate with a term of 12 months for at-the-counter deposits is 6.5-7.3%/year, and online deposits are 6.7-7.5%/year.

Earlier this week, four state-owned commercial banks, including Agribank , BIDV, Vietcombank, and VietinBank, jointly adjusted their short-term deposit interest rates down to a minimum of 3.3% per year, much lower than the ceiling rate of 4.75% per year applied to terms under 6 months .

Source: https://www.nguoiduatin.vn/nguoi-dan-tiep-tuc-gui-tien-vao-ngan-hang-bat-chap-lai-suat-giam-a618800.html