People still choose to save money in banks.

By the end of February, the amount of deposits of economic organizations at banks decreased by VND 153,000 billion compared to the previous month, down to VND 6,523 million billion. Compared to the end of 2023, the amount of deposits of economic organizations decreased by 4.66%, equivalent to VND 318,000 billion leaving the banking system in just 2 months.

Meanwhile, the amount of individual deposits at the end of February increased by VND 139,000 billion compared to the end of January, to VND 6,637 million billion. This is a positive increase instead of a negative increase like in January. Compared to the end of 2023, the amount of individual deposits increased by VND 105,000 billion, equivalent to an increase of 1.6%.

Economic organization deposits in February decreased sharply

However, the total means of payment of credit institutions by the end of February still recorded negative growth, reaching VND15,914 trillion. In addition, the proportion of cash in circulation also decreased from 10.9% in January to 10% in February.

The reason for the fluctuation in deposits is that February is the Lunar New Year holiday, businesses have high capital needs for production and business activities, while this is also the time when individuals receive year-end bonuses. Therefore, the amount of deposits of economic organizations decreased, while individuals increased. Moreover, savings interest rates in February of banks were low and continued to drop to the bottom in March and April. Low interest rates caused the amount of deposits of organizations and individuals into the banking system to decrease. Meanwhile, credit growth showed signs of recovery. In May, savings interest rates recovered and increased again, about 20 banks adjusted to increase mobilization interest rates. For 3-month savings interest rates, they are currently at 2.5 - 3.6%/year, 6-month from 3.3 - 5%/year, 12-month from 4.3 - 5.4%/year. Dragon Viet Securities (VDSC) forecasts that deposit interest rates may recover to the beginning of this year in the coming months, equivalent to an average increase of 0.5 - 1%/year from the bottom.

Source: https://thanhnien.vn/nguoi-dan-van-chon-goi-tiet-kiem-o-ngan-hang-185240601152656459.htm