Despite falling deposit interest rates, deposits by individual customers at banks in Vietnam topped VND6,300 trillion (US$266.7 billion) as of the end of May, continuing the upward trend that started in September last year, according to the State Bank of Vietnam.

This was also the highest-ever amount of deposits made by individual customers.

The figure rose 8.21 percent over the figure at the end of December last year.

Meanwhile, economic organizations made desposits totaling over VND5,700 trillion ($240.8 billion) as of May, up VND94 trillion ($4 billion) versus April.

By late May, deposit interest had plunged over the last quarter of 2022. 

Almost no bank offers a deposit interest rate of nine percent per year, while the rate of 10, or even 11 percent, was common among banks in November and December last year.

Deposit rates have plummeted since mid-July. The deposit rates for a 12-month tenor mainly stand at 6.3-6.5 percent per year.

The gap between the deposit rates for tenors is insignificant. Some lenders have even applied the same rate for tenors of six to 12 months. 

Local residents and businesses are still making bank deposits despite falling interest over the past few months, proving that production and business activities have faced difficulties, according to economic experts.

Locals chose to make bank deposits as the solution for a safe shelter and to help yield profits.

The government has recently asked banks to reduce lending rates by a minimum of 1.5 percentage points per year to remove difficulties for enterprises and residents.

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