People deposit money in banks increases sharply in the context of low interest rates

(NLDO) – People's deposits flowing into credit institutions by the end of May 2025 reached 7.6 million billion VND, an increase of 7.61% compared to the end of last year.

In the context of low interest rates, idle cash flows from individuals and economic organizations continue to increase strongly into the banking system. This trend has been recorded by the State Bank through recent statistics.

The sharp increase in bank deposits shows people's confidence in the stability and safety of the financial system.

Specifically, by the end of May 2025, people's total deposits at credit institutions had reached VND 7.6 million billion, an increase of 7.61% compared to the end of 2024. In May alone, people deposited more than VND 65,400 billion into the banking system, showing that confidence in the savings channel remains strong.

Not only residential areas, deposits from economic organizations also recorded remarkable growth. By the end of May, the balance of deposits from the business sector reached more than 7.7 million billion VND, an increase of 0.97% compared to the end of last year. Notably, compared to the end of April, the amount of deposits from this group skyrocketed by more than 116,000 billion VND in just one month.

In total, cash flow from both individuals and organizations into the banking system was more than VND181,400 billion in May, bringing the total amount of deposits at banks by the end of May to more than VND15,340 trillion - a new record high.

Idle money flows into banks as interest rates remain low

Notably, the deposit growth momentum is still taking place while mobilization interest rates continue to decrease or only increase slightly at a few banks.

According to statistics from MBS Securities Company, by the end of June, the average interest rate for 12-month terms at joint stock commercial banks was only 4.87%/year, down 0.17 percentage points compared to the beginning of the year.

Meanwhile, state-owned commercial banks such as Vietcombank, BIDV, and Agribank still keep interest rates stable at around 4.7%/year.

Interest rates down, people still choose to deposit money

Despite low interest rates, many people remain loyal to bank savings because of the safety and high liquidity. Mr. Quang Ngoc, a resident of Hiep Binh Ward, Ho Chi Minh City, shared that he still maintains a 600 million VND deposit in the bank for a term of 3-6 months, with an average interest rate of 4.7%-5%/year. When the maturity date comes, he does not switch to real estate or securities investment but continues to save.

"Although the interest rate is low, I still choose the bank because this is a safe channel, and when needed, I can withdraw quickly to serve sudden needs," he said.

Currently, the average VND deposit interest rate at commercial banks is fluctuating at many levels depending on the term: 0.1%–0.2%/year for non-term deposits and deposits under 1 month 3.2%–4%/year for terms from 1 to under 6 months 4.5%–5.5%/year for terms from 6 to 12 months 4.8%–6.1%/year for terms from 12 to 24 months.

Particularly, terms over 24 months can be up to 6.8% - 7.1% / year. While some banks such as BacABank, VIB , BaoVietBank slightly adjusted interest rates down, there are still other credit institutions that increased them to attract cash flow at a time when depositors start comparing alternative investment channels.

Source: https://nld.com.vn/nguoi-dan-van-dua-nhau-gui-tien-vao-ngan-hang-196250730065028431.htm