Depositing money in a savings account is a popular investment choice for many due to its stability and security. Assuming a deposit amount of 1 billion VND, the interest rates offered by banks are quite competitive. However, the interest rate also depends on the term of the deposit, such as 1 month, 3 months, 6 months, and so on.
How much interest will I earn on a 1 billion VND deposit?
To determine the interest earned on a 1 billion VND deposit, customers need to be aware of the current interest rates offered by banks.
The formula for calculating monthly interest is as follows:
Monthly interest = Deposit amount x interest rate (% per annum) / 12 x number of months
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For example, if a customer deposits 1 billion VND for a 1-month term at Vietcombank with an interest rate of 1.6% per annum, the interest earned at the end of the term will be: 1 billion x 1.6%/12 months = 1,333,333 VND.
If the same customer deposits 1 billion VND for a 6-month term at Vietcombank with an interest rate of 2.9% per annum, the interest earned at the end of the term will be: 1 billion x 2.9%/12 months x 6 = 14,499,996 VND.
Letโs assume the customer deposits 1 billion VND for a 1-year term at Agribank with an interest rate of 4.7% per annum. In this case, the interest earned at the end of the term will be: 1 billion x 4.7% = 47,000,000 VND.
How to maximize returns on a 1 billion VND bank deposit
According to experts, depositing money in a savings account is also a form of investment. This option provides customers with a high level of security and a stable interest rate.
To maximize interest earnings on bank deposits, customers should consider the following factors:
Choose a bank with higher interest rates
Interest rates may vary between banks for the same deposit term. Therefore, it is advisable to choose a bank that offers higher interest rates to earn more on your deposit.
However, in practice, the difference in interest rates between banks may not be significant for short-term deposits of 1 or 3 months.
Opt for longer-term deposits
Longer-term deposits typically offer higher interest rates. So, if you donโt have any immediate plans for your idle funds, consider choosing a longer-term deposit to benefit from higher interest rates.
Choose to receive interest at the end of the term instead of monthly
The interest rate for deposits with interest paid at the end of the term is usually higher than those with monthly interest payments. Consider this option to increase your returns.
Open multiple savings accounts to diversify interest rates
Opening multiple savings accounts is a smart way to manage your deposits. By dividing your deposit amount into multiple accounts with different terms, you can ensure a steady flow of profits and have easy access to funds without significantly impacting your total savings.
Take advantage of bank promotions
Keep an eye out for promotional offers from banks, as these can help maximize the benefits of your savings account.
