In recent times, there has been a noticeable trend among Vietnamese citizens to deposit their savings in banks, even as interest rates have passed their peak. This phenomenon prompts an exploration into the reasons behind the increasing preference for banks as a safe haven for idle money.

For many, such as 65-year-old Hoang Thi Mo from Ho Chi Minh City, depositing money in a bank provides both security and a steady income. Recently, she deposited nearly 1 billion VND with an interest rate of 9% per annum, which yields approximately 9 million VND monthly. "This amount is enough for my husband and me to cover our daily expenses without worries, and we even have some left over to buy treats for our grandchildren," she shared.

Similarly, Minh Trang, a resident of Hung Long, opts for online savings to receive interest at the end of the term. She stated, "I save money to enjoy peace of mind, unlike other investment channels that can be stressful." A survey of interest rates from over 30 banks reveals that competition for attracting deposits remains fierce, especially for short-term deposits of 3-5 months, with banks like BIDV and Sacombank offering rates of up to 4.75% per annum, the maximum allowed by the State Bank of Vietnam.

As the demand for capital in the economy grows, banks are inclined to raise interest rates to attract idle funds. This trend makes bank deposits, particularly those with terms of 6 months or more, more appealing. According to Dr. Chau Dinh Linh, an economic expert from Ho Chi Minh City Banking University, the increasing deposits cannot solely be attributed to interest rates. Factors such as inflation, monetary policy, and exchange rates also play significant roles.

As of the end of June 2026, total deposits in Vietnamese banks reached over 11 trillion VND, marking a record high. Compared to the end of 2025, this figure increased by approximately 733 trillion VND, or 7.1%. Dr. Linh noted that many citizens view bank deposits as a temporary means of preserving their assets while waiting for more favorable conditions to invest in stocks, real estate, or gold.

Moreover, the real interest rate remains positive, encouraging people to maintain their savings in banks. With inflation being relatively controlled and interest rates higher than inflation, depositors are motivated to safeguard and increase the real value of their money. Additionally, banking products are becoming more flexible, allowing for easier access to funds and varied liquidity options.

On the flip side, Trương Hiền Phương, a senior director at KIS Vietnam Securities, pointed out that the stock market currently lacks sufficient factors to attract idle funds. Negative news and geopolitical developments have impacted investor sentiment. The VN-Index, for instance, hovered around 1,734 points with liquidity dropping to just over 5 trillion VND, compared to previous averages of 30-40 trillion VND per session.

In this context, banks have emerged as a temporary refuge for citizens, providing a modest return while waiting for clearer signals from the market. However, Phương cautioned that depositors should not solely focus on the highest interest rates but also consider safety. Not all bank deposits are devoid of risk, and it is advisable to choose well-established banks with a stable history rather than chasing high rates. The deposit insurance mechanism is also a crucial factor when evaluating the safety of a deposit institution.