Interest rates increase, people rush to deposit money in banks

(NLDO) – Every day, more than 9,000 billion VND of idle money from people and businesses flows into the banking system, in September alone.

On November 2, the State Bank announced the latest data on customer deposits at credit institutions up to September 2024.

Accordingly, by the end of September, deposits of economic organizations reached more than 7.07 million billion VND, up 3.43%; deposits of residents reached more than 6.95 million billion VND, up 6.5% compared to the end of last year.

Compared to the end of last month, deposits from economic organizations increased by more than VND238,000 billion while deposits from residents increased by more than VND32,700 billion. In total, in September alone, on average, more than VND9,000 billion of idle money flowed into the banking system every day.

Deposit interest rates rise, boosting idle money flow into banks

According to records, idle money from residents flowing into the banking system is approximately 7 million billion VND in the context of recently increasing interest rates.

Statistics from Maybank Securities Company show that as of September 2024, 12-month deposit interest rates have increased by an average of about 0.6 percentage points from the bottom in March 2024, mainly driven by private banks. Meanwhile, state-owned banks such as Vietcombank, BIDV, and VietinBank continue to control the increase in deposit interest rates to maintain low interest rates to support economic growth.

Currently, the highest interest rates for some terms at banks are 1-month term up to 3.95%/year at Bac A Bank; 3-month term is 4.3%/year at Eximbank; 9-month term is 5.65% at NCB and 24-month term reaches 6.3%/year at ABBANK...

VNBA forecasts that by the end of October 2024, capital mobilization into the banking system could exceed VND15 million billion - the highest level ever.

Source: https://nld.com.vn/lai-suat-tang-nguoi-dan-un-un-gui-tien-vao-ngan-hang-196241202194820832.htm