What is an overnight deposit?

What is an overnight deposit?

Overnight savings is a form of short-term savings within 24 hours of individual customers through personal deposits and savings deposits, with high liquidity, helping customers manage capital flow effectively.

Customers can deposit money multiple times by cash or bank transfer and receive interest after 24 hours from the time of deposit.

Overnight savings deposit methods are simple and fully supported by banks such as cash deposits, bank transfers and can be deposited multiple times.

Another attraction is that your money will be returned after 24 hours from the time the customer deposits with a super competitive interest rate between banks. The interest will be added to the principal and will automatically renew the old term with the original interest rate.

According to Part I - Appendix 3 of Circular 36/2014/TT-NHNN, there are instructions on overnight deposits, accordingly, overnight deposits are understood as deposits in the period from the end of the previous working day to the next working day. The end of the working day is determined as the end of the transaction hours of the credit institution (CI), when the CI establishes a table of cash inflows and cash outflows to monitor and manage the solvency ratio prescribed in Clause 1, Article 15 of Circular 36.

Benefits of overnight savings products

For the sender

For individual customers who are used to keeping cash at home for fear of risk, they can now deposit money for a short term of only 24 hours with many attractive benefits as follows:

Fast liquidity, high interest rates and safety.

In addition, customers can also deposit and withdraw money at any time.

For banks

Overnight deposit products bring benefits to banks. Large banks can use this capital and use it as loan capital to the market at much higher interest rates.

In addition, for small banks, this is an opportunity to help reduce liquidity pressure and have more money to circulate more flexibly every day.

Minh Huong (synthesis)

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