Bank savings channels are less attractive, the amount of deposits has decreased sharply

In January 2024, the amount of deposits of economic organizations in banks decreased by 165,000 billion VND compared to the end of 2023, corresponding to a decrease of 2.41%, to 6.676 million billion VND.

The amount of remittances from the residential sector decreased by 34,000 billion VND, corresponding to a decrease of 0.53%, to 6,498 million billion VND.

Thus, the overall amount of deposits in January decreased by nearly 200,000 billion VND.

This is the first time in the past year that the amount of deposits from businesses and people into the banking system has decreased, after a long period of continuously reaching new records.

Deposit interest rates continuously falling to the lowest level in a long time is said to be the reason why bank savings channels are no longer attractive in the eyes of customers.

According to reports from commercial banks, by March 31, the average deposit interest rate for new transactions was at 3.02%/year, down 0.5% compared to the end of 2023. Interest rates Average lending of new transactions is at 6.5%/year, down 0.6%/year compared to the end of 2023.

However, since the end of March, deposit interest rates have shown signs of increasing again. From the beginning of April 2024 until now, a series of banks have increased deposit interest rates including: HDBank, MSB, Eximbank, NCB, VPBank, KienLong Bank, VietinBank, Bac A Bank, GPBank, OceanBank, BVBank, PVComBank, CB, BIDV.

According to reports from credit institutions and foreign bank branches through the statistical reporting system, transaction turnover on the interbank market in the week of April 15-19 in VND reached approximately VND 1,241,772 billion, an average of 310,443 billion VND/day, down 2,100 billion VND/day compared to last week.

Transaction turnover in USD converted into VND during the week reached about 338,411 billion VND, an average of 84,603 billion VND/day, an increase of 11,194 billion VND/day compared to the previous week.

By term, VND transactions mainly focus on overnight terms, accounting for 88%, and 1-week terms accounting for 5% of total transaction turnover.

For USD transactions, the terms with large trading volume are overnight terms accounting for 78% and 1-week terms accounting for 15% of total trading volume.