People pour money into banks despite interest rate cut

The State Bank of Vietnam has been taking measures to support economic growth, including a 0.25% cut to the ceiling interest rate, prompting many banks to lower their saving rates. Still, many people with idle money are depositing in banks.

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Despite lower interest rates, bank savings are still considered a safe option by many investors as other investment channels have become more risky due to the COVID-19 pandemic.

Interest rates for savings in Vietnamese dong with terms of six months to over one year are two to three percent higher than short-term savings. That’s why many people are opting for medium and long term savings. Besides, online savings accounts are also offering higher interest.

Lower savings’ interest rates aim to facilitate decreasing lending interest rates, for which local enterprises are longing for amid the complicated developments of the COVID-19 pandemic./.

VNA