Bank deposit growth of individual customers slowed in 2021

The deposit growth rate of individual customers at banks slowed last year due to the impacts of the pandemic.

According to the latest data from the State Bank of Vietnam (SBV), deposits of individual customers at banks by the end of November last year increased by just 2.63%, the lowest growth rate in many years.

Deposits totalled nearly VND5.28 quadrillion (US$226 billion) by the end of November, down more than VND23.4 trillion against the end of October.

Experts attributed the drop in individual deposits to the strong outbreak of the COVID-19 pandemic last year which caused incomes of many individuals to reduce. 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.

According to the experts, many depositors withdrew their savings to pour into more attractive investment channels amid declining deposit interest rates last year.

To lure depositors, many banks have recently increased savings interest rates.

Saigon Commercial Joint Stock Bank (SCB) has recently applied a new interest rate since January 10 this year with increases of 0.1-0.3 percentage points per year. Notably, the highest interest rate at SCB has reached 7.6% per year, but only applicable to customers depositing more than VND500 billion on the term of 13 months.

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 year for 12-month or more and 18-month or more deposits, respectively.

The Nam A Commercial Joint Stock Bank (NamABank) is offering the second highest savings interest rate in the baking system. The bank’s rate is 7.4% per year, applicable to customers depositing from 16 months or more. For terms of 12 to 15 months, the rate is also high at 7.2% per year.

Not only small-sized banks, many large-sized banks such as the Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Asia Commercial Joint Stock Bank (ACB), Sai Gon Hanoi Commercial Joint Stock Bank (SHB), Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Export Import Commercial Joint Stock Bank (Eximbank) have also adjusted up their savings interest rates since this month.

VPBank, for example, has introduced a new savings interest rate list for individual customers with increases on many terms, particularly for large savings amounts. The highest rate at the bank is currently 6.5% per year, 0.3 percentage points higher than the previous time, applicable to customers depositing online from VND50 billion on 36-month deposits.