The recent move by the State Bank on reducing the ceiling interest rate for less than 6 months will lead to a wave of withdrawing savings among people moving to other investment channels such as securities, real estate or bonds?
On the afternoon of May 12, the State Bank of Vietnam (SBV) issued a notice announcing a reduction in the ceiling interest rate for less than 6 months from 4.75% to 4.25%. This policy is applied starting today 13/5.

Thus, with the 6-month interest rate falling to 4.25% from May 13, whether or not investors withdraw money from banks to deposit into other investment channels such as securities and real estate. assets, gold, or even corporate bonds?

According to economist, PhD. Dinh The Hien, previously, the deposit interest rates of banks for three-month and one-year terms were almost equal in order to attract depositors. However, this policy distorts the interest rate curve.

“If customers want to save money, it must be from 1 year and up. If short term deposit, you should only accept a lower interest rate, suitable for short-term. Short-term interest rate can not be equal to the interest rate per year. “, TS. Dinh The Hien reviews.

In the opinion of experts, before this policy is consistent with the interest rate curve, that is, short-term interest rates must be low. At the same time, helping the bank improve its capital structure, moving from short-term capital to medium-term capital.

On the other hand, this policy is the basis for banks to reduce interest rates for corporate loans, better support businesses, especially after the current COVID-19.

Talking about the possibility of a wave of cash withdrawals transferred to investment channels to enjoy higher profits, Dr. Dinh The Hien said that the impact will be negligible and it is difficult to create a wave of cash withdrawing to invest in securities. contract or other investment channels.

Considering the current context, Dr. Dinh The Hien still holds that keeping money will still be the top priority for many people. Because according to the market principle, which is in the observation phase, if money cannot be lowered, keeping money is still the number one priority.

Dr. Dinh The Hien also cited, in fact, when customers deposit one-year term savings, but if they withdraw before maturity, some banks still have their own preferential policies to keep customers.

From the perspective of individual investors, Ms. L.P.M, a longtime investor in the stock market also said that temporarily holding cash with banks is still good and helps investors have more opportunities.

According to Ms. L.P.M, CPI dropped, the city house price is still at high price, the stock might drop to 500 points even more because facing the economic crisis cycle; and gold is so volatile.

According to a fund manager, investors are now clear about their investment goals, which means that they are knowledgeable about the investment channel they choose so not only because the interest rate drops by 0.5%, but also can change decisions.

“Even when the stock market surged and high interest rates, investors still did not move to change the investment channel. Therefore, this policy of reducing deposit interest rates is unlikely to create a wave of withdrawing savings to play. securities or real estate investment, “said an investment fund.

According to Vietnambiz