Hanoi (VNA) - Savings at banks remained attractive to locals, withdeposits of individuals in the first nine months of this year seeing a sharpsurge of more than 500 trillion VND (22.02 billion USD).

According to a report from the State Bank of Vietnam, individuals depositednearly 3.5 quadrillion VND at banks in the first nine months of this year, up17.08 percent against late last year. Savings at banks by institutions duringthe period also rose 10.65 percent to 2.34 quadrillion VND, the central bankreported.

Despite low interest rates, depositors said they preferred savings at bankssince it was absolutely safe, while other investment channels, such assecurities and real estate, had high risks.

According to the central bank, currently, the popular deposit interest ratesare 0.8-1 percent per year for demand and under one-month terms, and 4.5-5.4 percentfor 1-6 month terms. The popular rates applicable for medium- and long-termdeposits of 6-12 months and above 12 months are 5.4-6.5 percent and 6.4-7.2 percent,respectively.

In the past week, several commercial banks, such as BIDV, Agribank, Techcombankand Viet Capital Bank, unexpectedly slightly cut dong-denominated depositinterest rates by 0.1-0.3 percent per year to balance their liquidity and cutinput costs.

Thanks to the increase in deposits, liquidity at commercial banks this year isabundant, helping the banks in lowering lending rates to support domesticproduction and business.

The central bank reported that lending of the banking sector as of November 22had expanded by around 14 percent against December last year, with dong loansrising 15.3 percent. The central bank’s credit growth target of 17-18 percentthis year is feasible with focus on five prioritised sectors of agriculture,exports, spare-parts industries, high-tech, and small- and medium-sizedenterprises.-VNA