[NEWS] - Interest rates fall quickly, idle money still flows into the bank

Deposit interest rates fell rapidly after the State Bank reduced the operating interest rates, but people’s deposits into the banking system increased by 7.08%.

The State Bank has just released data related to customer deposits at many credit institutions as of the end of March 2023, showing many surprising numbers. Accordingly, when deposits of economic groups decreased sharply, equivalent to 4.87% compared to the end of 2022 when reaching more than VND 5.66 million billion, people’s deposits increased sharply by 7.08% and reached more than 6.28 million billion VND.

From the beginning of 2023 up to now, people’s deposits exceeded 6 million billion VND and continued to increase. In the first three months of this year, people deposited into the banking system an additional 415,000 billion VND.

People’s deposits into the banking system increased in the context of an increase in savings interest rates from the end of 2022 to the beginning of 2023. Up to mid-March now, the State Bank has lowered the level three times the operating interest rate.

At this time, the level of deposit interest has decreased. In joint stock commercial banks, many banks only mobilized with the highest interest rate of around 8 %/year. Meanwhile, in state-owned commercial banks, the highest interest rate is about 6.8 %/year.

According to the analysis of some experts, people’s deposits into the banking system increase rapidly when other investment channels such as securities, real estate, foreign currency, and gold... are not very attractive. The stock market has only prospered for about 2 months and officially surpassed 1,100 points in early June.

Meanwhile, deposits of economic organizations were quite strong compared to the end of last year, reflecting the difficulties that forced businesses to withdraw savings and payment deposits to pay for production activities. , investment, and business, instead of "rich" cash as before.

Analysts from SSI Securities said that the deposit interest rate level continued to cool down at tenors, but there was still quite a division between joint-stock banks and state-owned banks for the period term 6 months.

In the recently published June strategy report, Yuanta Securities Vietnam said that currently, the general interest rate for 12-month term deposits listed at commercial banks is falling to 8%. /year. The State Bank has also asked banks to reduce lending rates by using credit lines for management. Therefore, interest rates are continuing to tend to decrease, but lending rates have a lag due to slow credit growth. Indochina Holding specializes in providing financial consulting services and supporting loans from funds with the lowest interest rates. At the same time, supporting small and medium enterprises with effective investment and business strategies.

Hoang Yen (Collection source)