Savings interest rates down 50% compared to the beginning of the year, deposit volume still at record high

At the end of 2022, savings interest rates of many commercial banks tended to increase with an average amplitude fluctuating from 8-11%/year. However, the situation has now changed as deposit interest rates have continuously cooled down in 2023.

According to Big 4 banks, online deposit interest rates for 1 and 2 month terms are currently only around 2%/year. Meanwhile, deposit interest rates for terms over 1 year are also only around 4%.

Savings have decreased by 50% compared to the beginning of the year, but the amount of money deposited is still at a record high, picture 1 — Bank deposits still hit record high despite savings interest rates falling by nearly half compared to a year ago (Photo TL)

The group of private joint stock commercial banks has a higher 1-year term deposit interest rate, but it is still only around 5-6%. Thus, compared to 1 year ago, the deposit interest rate has decreased by more than half. However, the paradox is that the amount of savings deposits still tends to increase.

Statistics in the banking system of residents and economic organizations in 2023, the amount of deposits still reached more than 13.7 million billion VND, an increase of more than 12% compared to the beginning of the year. This increase is nearly double compared to the same period last year and is also the highest deposit level in the history of the banking industry.

The above factors have raised a big question about the economic situation in 2024, which is where will the investment cash flow go? In a recent market outlook report, KB Securities Company (KBSV) placed its hopes on the recovery of the stock and real estate markets thanks to the signal of a sharp decrease in interest rates.

Regarding the real estate sector, KBSV believes that the real estate market will receive a lot of support to recover, although the scenario of overheating again will not happen.

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