Bank interest rates on March 20, 2025: Lower than the gold price increase, many people withdraw savings to buy gold

Savings interest rates in the first months of 2025 remained stable but tended to decrease. Currently, the highest interest rate for regular deposits only fluctuates from 5.5% - 6.5% / year.

If calculated in the first 2.5 months of the year, with an average interest rate of 6%/year, the rate of return is only about 1.3%. Even when depositing at the highest rate of 6.5%/year, the profit is only 1.4%. This is a safe investment channel, suitable for those who want to preserve capital, but does not meet the need for high profits in the short term. Compared to gold, the rate of return on savings deposits is only 1/15.

Since the end of February, about 20 banks have reduced savings interest rates by 0.1% to 1% per year depending on the term. This makes savings less and less attractive compared to other investment channels, especially gold.

In the trading session on March 20, domestic gold prices continued to increase strongly, officially surpassing the 100 million VND/tael mark.

Bao Tin Minh Chau listed the price of gold rings at 98.35 - 100 million VND/tael.

PNJ adjusted the price to 98.1 - 99.9 million VND/tael.

SJC is currently trading around 98.6 - 100.4 million VND/tael.

In early 2025, the gold price fluctuated only between 83 and 84 million VND/tael. Thus, in just 2.5 months, the gold price increased by 15.5 to 16 million VND/tael, equivalent to a profit rate of 19%.

The large difference between the profit from gold and bank deposits has caused many investors to turn to hoarding gold.

The sharp increase in gold prices in a short period of time has caused a surge in demand for gold. On Tran Nhan Tong Street (Hanoi), many people lined up to buy, forcing gold shops to limit the quantity sold.

Mr. Phuong (Thanh Xuan, Hanoi) shared that he had just withdrawn some of his savings to buy gold. This was a savings account that had just matured in early March, but he decided to buy gold because he was worried that the price would continue to increase while bank interest rates might continue to decrease.

Although he withdrew more than 100 million VND to buy gold, Mr. Phuong could only buy a limited amount because the store limited transactions. "The price of gold has been increasing rapidly, I really regret not deciding to buy sooner. However, I still hope the price will continue to increase," he said.

Ms. Ha (23 years old, Dong Da, Hanoi) also spent more than 20 million VND to buy a 2-tael gold ring. She regrets not buying it sooner, especially on the day of God of Wealth, when the price was lower. "I just finished my savings deposit at the bank, but the interest over the past year is not equal to the increase in gold price in just the past few days," she shared.

According to analysts, the sharp increase in domestic gold prices is mainly due to the influence of international gold prices.

Several factors contributed to the rise, including geopolitical uncertainty, loose monetary policy, increased demand for gold from central banks and concerns about the Trump administration's tariff policies.

In the context of the global economy still having many fluctuations, the price of gold may continue to adjust strongly in the coming time. Therefore, investors need to consider carefully before deciding to buy at this time.