Personal bank deposit growth slows in 2021
VIETNAM, January 25 –
A customer deposits in a bank. Personal deposits in banks at the end of November last year grew by only nearly 2.63%, the lowest growth rate for many years. Photo cafef.vn
HÀ NỘI — The growth rate of retail deposits in banks slowed down last year due to the impacts of the pandemic.
According to the latest data from the State Bank of Vietnam (SBV), retail deposits in banks at the end of November last year increased by only 2.63%, the growth rate the lowest for many years.
Deposits totaled nearly VNĐ5.28 quadrillion ($226 billion) at the end of November, down more than VNĐ23.4 trillion from the end of October.
Experts attributed the decline in retail deposits to the strong outbreak of the COVID-19 pandemic last year, which lowered the incomes of many individuals. At the same time, many people could not go to banks to deposit their money as many provinces and cities had to implement social distancing measures.
Experts say many depositors withdrew their savings to seek more attractive investment channels amid falling interest rates on deposits last year.
To attract depositors, many banks have recently raised interest rates on savings.
The Saigon Commercial Joint Stock Bank (SCB) recently applied a new interest rate from January 10 this year with increases of 0.1 to 0.3 percentage points per year. Notably, SCB’s highest interest rate reached 7.6% per annum, but only applies to customers depositing more than VNĐ500 billion over a 13-month term.
For small amounts of deposits, the savings interest rates offered by SCB are also among the highest in the banking system, at 7 and 7.35% per annum for deposits at 12 months or more and at 18 months. or more, respectively.
Nam A Commercial Joint Stock Bank (NamABank) offers the second highest savings interest rate in the bakery system. The bank’s rate is 7.4% per annum, applicable to clients depositing for 16 months or more. For terms of 12 to 15 months, the rate is also high at 7.2% per year.
Not only small banks, but many large banks such as Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Asia Commercial Joint Stock Bank (ACB), Sài Gòn Hà Nội Commercial Joint Stock Bank (SHB), Sài Gòn Thương Tín Commercial Joint Stock Bank (Sacombank) and Export Import Commercial Joint Stock Bank (Eximbank) have also adjusted their savings interest rates upwards since this month.
VPBank, for example, introduced a new list of savings interest rates for individual customers with increases on many conditions, especially for large savings amounts. The bank’s highest rate is currently 6.5% per annum, 0.3 percentage points higher than the previous time, applicable to customers depositing online from 50 billion VN on deposits of 36 month. —VNS