Saving in foreign currency is a form of savings that many customers are interested in. However, before choosing this form of savings, customers need to understand the following issues:
What is foreign currency savings?
Foreign currency savings is a form of depositing savings in a bank to receive interest on the deposited amount. In which, the deposit is in foreign currency, usually US dollars (USD).
Customer deposits are calculated interest according to the fixed or fluctuating market interest rate at the time of deposit. The interest rate applied at each bank is different.
Forms of foreign currency savings
Saving in foreign currency (usually USD) does not have as many forms as saving in VND, usually the following two popular forms:
Regular savings
This is a form of savings at the bank, customers put money into their savings account with a certain interest rate to generate profit over time.
With this form, customers can choose the deposit term based on their needs. After the term ends, customers will receive interest. If the term has not yet expired, customers who withdraw money early will still receive the non-term interest rate.
This form of savings account is safe and secure but also has some limitations such as exchange rate risk and limited ability to use money. Deposits in savings accounts usually cannot be used to pay for domestic goods or services but can only be withdrawn in foreign currency.
Savings with interest paid in advance
(Illustration)
This is a form of savings at a bank in which the depositor is paid interest before the end of the deposit term. Normally, when making a deposit with interest paid in advance, the customer will receive the entire deposit amount plus the interest calculated before the end of the deposit term.
With this form, customers know in advance the amount of money and interest received when the deposit term ends. This helps depositors to plan their finances accurately, while avoiding the risk of interest rate changes during the deposit period.
Experience in saving USD
Because it is not recommended, the interest rate for USD savings is quite low. However, if you know how to calculate, customers can still earn attractive profits from this form of savings.
Compare interest rates
Before deciding to deposit USD, customers should research and compare interest rates of banks. This helps depositors find the best interest rate and optimize the value of their money.
Money Turnover
Instead of just depositing money and waiting for interest, depositors use the deposited money to invest in short-term deposits or securities. Then, withdraw the money and deposit it back into foreign currency savings when there is a profit.
Take advantage of exchange rate differences
When the foreign exchange rate increases against the currency of the country where they live, the depositor can convert the money into foreign currency to invest in foreign currency savings. Then, when the exchange rate decreases or returns to normal, the customer converts the foreign currency back into the currency of the country where they live to earn a profit.
Choose long-term deposit method
Long-term USD savings help customers feel secure about having capital to use in the future.
Pay attention to bank terms and conditions
You should carefully read and understand all the terms and conditions of the bank before saving USD. This helps to avoid risks and avoid unnecessary loss of money.
Regularly update information on the foreign exchange market
Don't forget to update and follow information about the foreign exchange market to be able to make smart and effective decisions about saving USD.
Ensure the security of your savings account
Never share your account information with others and use security methods such as PINs or tokens to log into your account.
Lagerstroemia (synthesis)
Source
Comment (0)