People's bank deposits continue to set records.

(Dan Tri Newspaper) - Despite massive interest rate cuts, deposits from individuals into the system still reached a new record of nearly 7.5 million billion VND. Deposits from economic organizations also increased after two consecutive months of decline.

Nearly 262 trillion VND flowed into the banking system in March.

According to the latest figures released by the State Bank of Vietnam, household deposits at credit institutions reached VND 7.4699 trillion by the end of March, an increase of 5.73% compared to the end of 2024, equivalent to an increase of VND 404.8 trillion, setting a new record. Compared to the end of February, household savings deposits increased by VND 103.8 trillion.

Deposits from economic organizations, after two consecutive months of decline, rebounded, increasing by VND 158 trillion in March. However, overall for the first three months of the year, deposits from economic organizations still decreased by VND 147 trillion. Economic organizations currently have VND 7.52 million trillion deposited in banks, a decrease of 1.92% compared to the end of 2024.

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

After two months of raising interest rates to attract deposits from the public, many banks adjusted their rates downwards in March. Following a period where banks offered deposit interest rates exceeding 6% per year, higher than the general average for several months prior, this level of interest almost disappeared in March.

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

The Prime Minister's directive to maintain low interest rates comes amidst the context that economic growth is a top priority this year. Keeping interest rates low is essential to support economic growth and ensure the national GDP growth target of 8% or higher this year, as concluded by the Central Committee and resolutions of the National Assembly and the Government.

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

People's deposits into 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 Finance - Banking Faculty at Nguyen Trai University, noted that in the context of sharply declining and low deposit interest rates, the amount of deposits from the public into the banking system continues to grow steadily because banks are still considered a safe haven for the majority of people.

Mr. Huy also pointed out that the market lacks truly attractive alternative investment channels.

According to Mr. Huy, real estate prices in many cities have remained high for many years, causing the total investment for each property 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 investment channel. In addition, liquidity remains slow, the legal framework is not yet synchronized, and buyers' sentiment remains cautious.

In the stock market, while indices have improved, capital flows remain cautious. Investors are awaiting clear signals from the market upgrade. Concerns related to the US's retaliatory tariffs on goods from Vietnam and other developing countries are also making foreign capital flows and domestic investor sentiment more cautious.

Regarding gold and foreign currency, according to the expert, gold prices are currently at record highs and highly volatile due to international factors. Meanwhile, investing in foreign currency remains limited by foreign exchange market management policies and exchange rate risks. These channels are more suitable for risk hedging than for long-term profit-making investments.

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

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