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Understanding what a deposit account is can give you the confidence to choose the right product for your savings needs.
Deposit accounts are a secure place to save money while earning interest. The term 'deposit' refers to the money put into a bank account.
These accounts can offer easy access to funds and the security of keeping your money in a bank.
A deposit account can also help you manage your cash flow and budget for future expenses.
Here are some common types of deposit accounts in Vietnam:
For Vietnamese dong deposits that last less than 6 months, banks can only offer interest rates up to a limit set by the Governor of the State Bank of Vietnam. For deposits of 6 months or longer, the interest rate will depend on market supply and demand.
Your deposit account may also come with a minimum balance requirement or set term.
You can make transactions with current accounts (also called demand or non-term accounts). However, there may be penalties for taking your money out from a time deposit before the term is up.
Here's a side-by-side comparison of the features to help you decide which account might be best for you:
| Feature | Savings account | Time & step-up deposit account | Current account |
|---|---|---|---|
| Fees | Usually no fees | Usually no fees | May have maintenance fees |
| Interest rate | Moderate, varies by bank | Moderate, varies by bank | Low or no interest |
| Purpose | Short term, long-term savings, and investments | Short term, long-term savings, and investments | Daily transactions |
| Access to funds | Limited access until maturity; fund transfer is not allowed | Limited access until maturity; fund transfer is allowed | Highly accessible, frequent withdrawals allowed |
| Minimum deposit requirement | For HSBC, VND10 million or 1,000 units of foreign currency | For HSBC, VND10 million or 1,000 units of foreign currency | Usually low or none; for HSBC, VND300,000 within 12 months of opening |
| Feature | Fees | Fees |
|---|---|---|
| Savings account | Usually no fees | Usually no fees |
| Time & step-up deposit account | Usually no fees | Usually no fees |
| Current account | May have maintenance fees | May have maintenance fees |
| Feature | Interest rate | Interest rate |
| Savings account | Moderate, varies by bank | Moderate, varies by bank |
| Time & step-up deposit account | Moderate, varies by bank | Moderate, varies by bank |
| Current account | Low or no interest | Low or no interest |
| Feature | Purpose | Purpose |
| Savings account | Short term, long-term savings, and investments | Short term, long-term savings, and investments |
| Time & step-up deposit account | Short term, long-term savings, and investments | Short term, long-term savings, and investments |
| Current account | Daily transactions | Daily transactions |
| Feature | Access to funds | Access to funds |
| Savings account | Limited access until maturity; fund transfer is not allowed | Limited access until maturity; fund transfer is not allowed |
| Time & step-up deposit account | Limited access until maturity; fund transfer is allowed | Limited access until maturity; fund transfer is allowed |
| Current account | Highly accessible, frequent withdrawals allowed | Highly accessible, frequent withdrawals allowed |
| Feature | Minimum deposit requirement | Minimum deposit requirement |
| Savings account | For HSBC, VND10 million or 1,000 units of foreign currency | For HSBC, VND10 million or 1,000 units of foreign currency |
| Time & step-up deposit account | For HSBC, VND10 million or 1,000 units of foreign currency | For HSBC, VND10 million or 1,000 units of foreign currency |
| Current account | Usually low or none; for HSBC, VND300,000 within 12 months of opening | Usually low or none; for HSBC, VND300,000 within 12 months of opening |
The Deposit Insurance Fund of Vietnam helps to keep your Vietnamese dong deposit accounts safe. These include:
This insurance currently covers up to VND125 million for each depositor, so you can get your money back within that limit if something goes wrong.
When choosing a bank for your deposit account, you should think about its reputation and the interest rate you'll get.
You'll also want to consider:
How easy it is to open an account - Resident Vietnamese citizens can open a single or joint savings or deposit account in both Vietnamese dong and foreign currencies.
What it will cost you - Fees will vary by bank and account type. The bank should clearly outline these fees.
Online and mobile banking features - Check out the bank's online banking services. A user-friendly platform can make managing your account much easier.
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