Vietnamese pull out deposits from banks as interest rates plummet

By Quynh Trang   May 1, 2024 | 07:01 pm PT
Bank deposits in Vietnam dropped for the first time in two years in January, tracking interest rates.

Citizens' deposits were worth VND6.5 quadrillion (US$256 billion) at the end of January, down 0.5% from the previous month, according to latest data from the State Bank of Vietnam.

Corporate deposits were VND6.67 trillion, down 2.4%.

Data from the General Statistics Office shows that as of March 25 banks’ mobilization was 0.76% down from the beginning of the year as against a 1.2% rise in the same period last year.

Banks deposit interest rates were at 5% a year in January compared around 9% early last year.

So far this year gold prices have risen by 10.4% and the VN-Index by 10.5%, offering investors other options.

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