Savings are booming: private customers are outperforming companies when it comes to deposits!

Savings are booming: private customers are outperforming companies when it comes to deposits!

The current financial landscape in Vietnam shows a notable increase in individuals' deposits with credit institutions, reaching VND7,366 trillion by the end of February 2025. This represents an increase of 4.26% compared to the end of 2024. During the same period, savings deposits recorded an increase of VND 178,000 billion compared to the same month last year and VND 301,000 billion compared to the end of 2024. This shows a positive development for the private savings rate in the country, while the deposits of economic organizations decreased for the second consecutive month, reported vietnam.vn.

The current deposits of economic organizations amounted to VND7,362 trillion, a decrease of 3.98% compared to the end of last year. Deposits of economic organizations fell by VND71,000 billion in February and a total of VND305,000 billion in the first two months of 2025. In contrast, private customer deposits now officially exceed those of economic organizations, marking a new chapter in the country's savings landscape.

Rising savings interest rates and monetary policy requirements

As a result of these developments, many banks increased deposit rates to over 6% per year in February. The interest rates vary depending on the term and the size of the bank: for 3-month term deposits these are between 3.5% and 4.6% per year, for 6-month terms they are between 4.8% and 5.9% per year and for 12-month savings deposits they reach up to 7.7% per year.

Since the end of February, however, there have been new guidelines from the government and the State Bank that require commercial banks to reduce deposit rates. This resulted in 29 banks cutting rates by 0.3% to 1.3% per year between March and today. Dr. Chau Dinh Linh of Ho Chi Minh City Banking University explained that the state bank's monetary policy orientation is aimed at maintaining low interest rates. This is intended to help support businesses and the economy after the Covid-19 pandemic and other crises.

Interest rate developments from a European perspective

In a broader European context, data analysis from the European Central Bank (ECB) shows that deposit facility rates have changed significantly since 1999. The ECB has adjusted its interest rate policy in recent years, which has also influenced the savings strategies of residents in eurozone countries. This development, published on April 23, 2025 on Statista, shows the dynamic changes in the monetary environment and their influence on saving behavior [Statista ].

Overall, rising savings and interest rate adjustments reflect financial uncertainty and people's desire to keep their money safe while waiting for better investment opportunities.