What is flexible principal savings?
Flexible principal savings is a type of savings account where customers can withdraw part of the principal amount before the maturity date without closing the entire deposit.
When participating in flexible principal savings, customers can confidently deposit a large amount of money in the bank with a long-term maturity to enjoy the highest interest rates. If there is a need to withdraw money, customers will still receive the full interest rate for the remaining principal amount after deducting the withdrawn amount.
Currently, there are many advantages for customers in depositing savings. The products bring new value to customers and create differences in savings products among banks and financial institutions.
With this form, customers can deposit and withdraw flexible principal for unexpected personal needs. At the same time, they will still be guaranteed the full interest of the remaining principal deposited until the end of the term.
Benefits of flexible principal savings
Due to the increasing number of banks offering flexible savings services, customers will enjoy highly competitive interest rates for all types of terms.
Flexible principal savings is a savings product offered by financial institutions that allows customers to partially withdraw the principal before maturity while still maintaining the remaining principal until the end of the term and earning fixed-term interest rates on the savings account.
Especially, there are many outstanding benefits when withdrawing money before maturity. Customers may receive interest based on the actual time of the deposit with the interest rate of that deposit period.
Moreover, another important benefit is that customers can use the savings account as collateral for borrowing or have their personal financial capacity verified for necessary purposes.
Flexible withdrawal of principal when there is a need, one-time deposit with multiple withdrawals, flexible and attractive interest rates based on real-time deposits, interest preservation for the remaining principal, and selecting interest payment periods according to personal financial plans.
Flexible principal savings interest rates at some banks
At Techcombank, as of February 5, 2024, the interest rate for flexible principal savings for deposits under 1 billion VND is 2.4% per year for 1-2 months term, 2.5% per year for 3-5 months term, 2.6-2.65% per year for 6-11 months term, and 4.7% per year for 12-36 months term.
For deposits with higher amounts such as 1-3 billion VND and above 3 billion VND, the interest rates for flexible principal savings at longer terms are increased by 0.05-0.1% per year.
At NCB, the interest rates for flexible principal savings are 4.25% per year for 1-5 months term, 5.25% per year for 6-11 months term, 5.6% per year for 12 months term, and 5.9% per year for 15-60 months term.
At CBBank, the bank applies interest rates of 4.1% per year for 1-2 months term, 4.2% per year for 3-5 months term, and 4.9% per year. For longer terms, the bank applies interest rates of 5% per year for 7-11 months term, 5.2% per year for 12 months term, and 5.3% per year for terms from 13 months and above.
With HDBank, the bank applies an interest rate of 2.65% per year for all terms. However, this interest rate is only applicable to accounts opened after December 5, 2019.