Should I save for 1 month or 3 months?

What is a 1 month term deposit?

1-month term deposit is a popular form of short-term deposit at banks today. Customers deposit their “free” money at the bank for 1 month, the bank will pay interest on this amount for a 1-month term. After 1 month, customers can close the deposit account or continue to deposit.

1 month is the term that can be considered the first in the term deposit interest rate table at all banks. 1 month term deposit usually has a higher interest rate than non-term deposit and payment deposit. This is also considered a popular form of short-term savings for current salaried employees.

What is a 3-month term deposit?

3-month term deposit is a form of savings in which the depositor can only withdraw money after a 3-month term according to the agreement with the savings deposit receiving organization.

This means you deposit savings at the bank for 3 months. At the end of 3 months, you can close the account and withdraw both principal and interest, or continue to maturity, or choose any other term (1 month, 6 months, 12 months) to continue saving.

Should I save for 1 month or 3 months?

For people with idle money for a short time

For those who often need to use deposits early and cannot save for a long time, they should choose short terms to be flexible in using capital.

In fact, most banks today offer deposits with terms of only 1 week, 2 weeks, 3 weeks, 1 month and 2 months. Each term will have a different interest rate, usually from 1%/year to 5%/year for customers to choose from.

The advantage of this deposit is flexibility in capital sources while still receiving better interest rates than non-term savings deposits.

For people with stable idle money for a long time

Customers who have a large, stable source of idle money, or do not have a specific purpose for using it in the future, or can handle problems that arise without having to touch their deposits, should choose to save for a term of 3 months or more.

This is an effective, stable and safe form of investment. When participating in long-term deposits, customers have many deposit terms to choose from such as 3 months, 6 months, 9 months, 12 months, 24 months, 36 months, or even 13 months, 14 months, 20 months...

The advantage of long-term deposits is the attractive interest rate, much higher than short-term deposits, from 5.1%/year to 8%/year. Moreover, if the depositor has to withdraw money before the term, the depositor will still be charged the non-term interest rate.

Minh Huong (synthesis)

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