People's deposits in banks continue to set records

(Dan Tri) - Interest rates have dropped dramatically, but people's deposits into the system still set a new record of nearly 7.5 million billion VND. Deposits from economic organizations have also increased after 2 consecutive months of decline.

Nearly 262,000 billion VND "flowed" into the banking system in March

According to the latest data released by the State Bank, people's deposits at credit institutions by the end of March reached VND 7,4699 trillion, up 5.73% compared to the end of 2024, equivalent to an increase of VND 404,800 billion, setting a new record. Compared to the end of the previous February, people's savings deposits increased by VND 103,800 billion.

After two consecutive months of decline, deposits of economic organizations increased again by VND 158,000 billion in March. However, in the first three months of the year, the total deposits of economic organizations still decreased by VND 147,000 billion. Economic organizations currently have deposits at banks of VND 7.52 million billion, down 1.92% compared to the end of 2024.

In March alone, individuals and economic organizations poured nearly 262,000 billion VND into the banking system.

After 2 months of increasing interest rates to attract capital from the population, in March, many banks adjusted their interest rates down. After a period of time when banks raised their mobilization interest rates above 6%/year, higher than the general level in many previous months, by March, this interest rate almost "disappeared".

The reason is that since the end of February, the Government and the State Bank have asked commercial banks to reduce deposit interest rates to create conditions to lower lending interest rates. All commercial banks in Vietnam have reduced deposit interest rates by 0.3-1.3%/year, depending on the term.

The Prime Minister's directive on maintaining low interest rates takes place in the context of economic growth being the top priority task this year. Maintaining low interest rates is a condition to support economic growth, ensuring the country's GDP growth target this year reaches 8% or more according to the Central Committee's conclusions and the National Assembly and Government's resolutions.

At the same time, the Prime Minister also reminded the State Bank to closely monitor the announcement and transparency of deposit and lending interest rates of commercial banks.

People's deposits in banks continue to set records (Photo: Manh Quan).

Why do people still choose to deposit money in banks despite low interest rates?

Mr. Nguyen Quang Huy, Executive Director of the Faculty of Finance and Banking, Nguyen Trai University, commented that in the context of a sharp decrease in interest rates and at a low level, the amount of money deposited by the population into the banking system is still growing steadily because banks are still considered a safe destination for the majority of people.

Mr. Huy also pointed out that the market lacks alternative investment channels with real appeal.

According to Mr. Huy, real estate prices in many cities have been high for many years, causing the total investment for each product to often range from several billion to tens of billions of VND. This is a major financial barrier, preventing most people, especially the middle and lower middle classes, from accessing this channel. In addition, liquidity is still slow, legal issues are not consistent, and buyers are still hesitant.

Regarding the stock market, the market has improved in terms of indexes, but cash flow is still tentative. Investors are waiting for a clear signal from the market upgrade. Concerns related to the US's reciprocal tax policy on goods from Vietnam and developing countries have also made foreign capital flows and domestic investors more cautious.

Regarding the gold and foreign currency channels, according to the expert, the gold price is currently at a record high, fluctuating strongly according to international factors. Meanwhile, investment in foreign currencies is still limited by foreign exchange market management policies and exchange rate risks. These channels are more suitable for risk prevention than long-term profitable investment.

According to him, when major investment markets show signs of instability, people tend to prioritize capital safety over expected profits. In this context, the banking system in Vietnam is still a safe and transparent place to keep assets.

Source: https://dantri.com.vn/kinh-doanh/tien-gui-nguoi-dan-vao-ngan-hang-tiep-tuc-lap-ky-luc-20250616151959829.htm