Client deposits at credit institutions in Vietnam reached a record high of VND12,680 trillion (circa $522 billion) as of end-September, rising 7.28% from end-2022, data from the central bank showed.
Of the total, deposits made by retail clients hit VND6,449 trillion ($265.4 billion), up VND15.935 trillion ($655.8 million) versus end-August.
Against end-2022, deposits by retail clients rose 9.95%, marking the fastest growth pace in the nine-month period since 2018.
Similarly, deposits by economic institutions increased 4.65% from end-2022 to VND6,231 trillion ($256.4 trillion) as of end-September. In September alone, their deposits added up to VND217.35 trillion ($9 billion), doubling the increase in September 2022.
Deposits saw strong growth despite banks continuously cutting savings rates. Deposit interest rates for less-than-six-month terms are hovering between 2.6% and 4.75% per year, with few banks offering the ceiling rate of 4.75%.
Among state-run lenders, Hanoi-based Vietcombank is offering the lowest rates, curbing the rate for terms longer than 12 months at 5%. Meanwhile, similar deposits at BIDV, VietinBank, and Agribank are at 5.3%.
Deposit rates at privately-run banks such as VPBank, Sacombank, and Techcombank have fallen to years-lows, at 5.3-5.9% for terms longer than 12 months. They are offering rates of 5% at most for deposits of between six and 12 months.
According to economists, locals are prioritizing putting money in savings accounts as risk appetite for other channels such as real estate, gold and stock is low.