In this paper, we analyze household savings in rural Vietnam paying particular attention to the factors that determine the proportion of savings held as formal deposits. Our aim is to explore the extent to which social capital can play a role in promoting formal savings behavior. Social capital is defined as active membership of socio-political organizations such as Women’s Unions and Farmer’s Unions. We find strong evidence to support the hypothesis that information transmitted through these organizations increases the proportion of liquid assets held in the form of deposits that yield a return. Our results imply that transmitting information on the benefits of deposit saving through formal networks or groups would be effective in increasing the number of households that save at grassroots level.