Thanks to increases in savings interest rates, deposits at banks increased strongly in the first two months of this year after declining last year.

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

Many banks have increased their interest rates to attract more depositors after getting a credit growth quota expansion from the State Bank of Vietnam (SBV).

Deposit interest rates at commercial banks will continue to decrease and remain at low levels in the coming months, analysts forecast.

The State Bank of Vietnam (SBV) will keep the current deposit interest rates and lending rates unchanged until the end of this year to ensure the banking system’s liquidity and benefits for depositors.

Many businesses suggested more detailed policies should be issued to help them access bank loans as there remain difficulties in lending.

The Ho Chi Minh City People’s Committee has made several suggestions for the Ministry of Finance’s decree to support businesses and individuals affected by the COVID-19 pandemic, including ensuring bank lending rates are no more than 2% higher than deposit interest rates.

The deposit interest rates at major banks has continued to decrease since the beginning week of September.

The Vietnam Association of Financial Investors (VAFI) has proposed gradually lowering the VND deposit interest rate to zero percent.

Demand for deposits by individuals have increased significantly in recent months as people tended to switch to cashless payment methods, especially in the context of the COVID-19 pandemic.