People's deposits in banks reach many impressive records

According to VTV , the latest figures have just been announced by the State Bank. In August, people deposited an additional VND43,723 billion into the banking system. This increase is a significant improvement compared to the VND6,700 billion in the previous July or the VND35,300 billion in June and VND14,700 billion in May.

However, in the first 4 months of the year, the average increase in additional deposits in banks reached over 110,000 billion per month.

Savings interest rates as of the end of August have dropped significantly compared to the beginning of the year, with not many banks willing to pay 7% interest per year for a 12-month deposit. The interest rate decline that has lasted since April has caused interest rates to hit rock bottom, even lower than during the Covid-19 pandemic.

The low interest rate environment during the Covid-19 pandemic has caused cash flow to shift strongly to investment channels such as stocks, real estate, etc. Recently, Vietcombank has further reduced interest rates for all terms, the highest level is only 5.1%/year. This unit's move is usually directional for the market.

Finance - Banking - People's deposits in banks reach many impressive records — By the end of August, the amount of people's deposits in the banking system continued to reach an all-time high. Illustration photo from the internet

Therefore, many experts believe that there may be a reduction in deposit interest rates soon. This may cause the trend of shifting cash flow to other investment channels like the Covid-19 pandemic period to repeat.

In the first 8 months, residential deposits in the banking system reached more than 6.43 million billion VND, an increase of about 9.68% compared to the beginning of the year, also the highest level ever.

The amount of deposits of economic organizations into the banking system also improved significantly, with an additional VND103,501 billion in one month. In the previous July, the amount of deposits of economic organizations into the banking system decreased by more than VND74,000 billion compared to June.

As of the end of August, deposits of organizations were at 6,013 trillion VND, up more than 1% compared to the end of last year.

According to Tuoi Tre , on October 24, Prime Minister Pham Minh Chinh signed telegram No. 993 on continuing to resolutely implement solutions to develop a safe, healthy, and sustainable real estate market, contributing to promoting socio-economic development.

Regarding real estate credit, the Prime Minister assigned the Governor of the State Bank to direct commercial banks to continue promoting credit lending to the real estate sector.

At the same time, the banking industry has appropriate solutions to reduce costs to reduce interest rates; continue to review and further reduce inappropriate, troublesome and costly administrative procedures so that businesses, real estate projects and home buyers can access credit sources more conveniently.

Dao Vu (T/h)

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