How is a term deposit different from a term savings deposit?

What is a recurring deposit?

Term deposits (also known as term deposits) are a bank deposit product in which the depositor can only withdraw money after a certain term agreed upon with the deposit-receiving institution.

When choosing this form of deposit, the customer will own a deposit contract which is a legal document proving the customer's deposit at that credit institution. This deposit contract is a type of valuable paper, the owner can mortgage or pledge to borrow capital from the issuing bank or other credit institutions.

What is a recurring deposit?

Term deposits are also known as term deposits. This is an individual's money deposited into a bank savings account for a predetermined period of time, confirmed on the savings book and entitled to interest according to the regulations of the receiving bank and insured according to the law.

Customers can deposit savings in VND, USD, Euro with a minimum value of 500,000 VND, 100 USD, 100 EUR. Interest is paid periodically monthly, quarterly or at the end of the term depending on the agreement between the two parties. And it is worth noting that when withdrawing the principal before the maturity date, customers will only receive non-term interest.

Compare term deposits and term savings deposits

Alike

Term deposits and term savings deposits are similar in features, deposit types, interest payment methods, interest calculation basis and withdrawals.

- Features: Deposit, cash withdrawal and transfer.

- Deposit type: VND and foreign currencies

- Interest payment method: Prepayment/Postpayment/Periodic

- Interest calculation basis: Term interest rate

- Withdrawal: Can be withdrawn before maturity

Different

Recurring deposits are aimed at individuals or organizations. When making a recurring deposit, customers will receive a deposit contract and be able to mortgage or pledge to borrow capital from the deposit bank or other credit institutions.

For periodic savings deposits, individual customers can open a card or savings book, and can use the card or savings book to borrow capital from the bank where the deposit is made.

Minh Huong (synthesis)

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