Savings still seen as a safe haven

To appeal to new customers, many banks have launched  different promotion programs offering inducements such as household appliances, cars and promotion vouchers. SeABank, for example, has just launched a promotion in form of scratch cards. For every deposit of VND50 million ($2396.8) for a one-month term, customers will receive a scratch ticket with 100 per cent chance of win a prize.

When the programme ends, all depositors are entered into a lucky  draw game, with the most valuable award a SeABank’s Visa card worth from VND100 million ($4,796). The total promotion value of this program is more than VND15 billion ($719.6 million).

According to Le Quoc Long, deputy general director of SeABank, "SeABank Anniversary, fast scratch for big win” from June 16 to October 10 had already proven successful, because of  the number of customers opening deposit accounts has increased sharply and many customers express satisfaction with the bank’s program.

Although the domestic currency deposit cap was reduced four times this year, it now can not bring as much as profit as it used to. Savings in domestic currency is believed a safe one.

According to experts, many people are afraid of gold risk, as they can not forecast about the movement of gold price. Others said now was a good time for investing or purchasing real estate assets, however, most of them did not have enough financial capacity; borrowing from banks would cost them much while they did not know when the real estate market would recover.

In addition, the stock market has nearly hits the bottom. Foreign currency deposit rate remains lower than domestic currency’s one.

Hoai Nam, a business man said that he did not like to deposit at banks as the profit was not as high as other channels.

“But I still choose savings as it is the safest and the most stable one at this time,” said Nam.

Nguyen Thuy Trang, a customer of SeABank, said she chose the bank so he could receive gifts as well as quality services.

“When my deposit account comes due, a bank’s staff will inform me by call and consult me about the most profitable deposit product. I also recommend family and friends to deposit at SeABank and experience the feeling of scratch and win,” said Trang.

Amid the economic crisis, many people still prefer saving  at banks.  Customers say they are concerned with having most convenient service and profitable products. It is also the most suitable time for banks to enhance their service quality to develop faster in retail banking, which will bring banks stable and sustainable income.