What is Overnight Deposit?
An overnight deposit is a form of short-term savings within 24 hours for individual customers through personal deposits and savings, with high liquidity, helping customers manage effective capital flows.
Customers can deposit multiple times by cash or transfer and earn interest after 24 hours from the time of deposit.
The method of overnight deposit is simple and maximally supported by banks such as cash deposits, transfers, and can be deposited multiple times.
Another attraction is that your money will be refunded after 24 hours from the time the customer deposits with a super competitive interest rate between banks. The profit will be added to the principal and will automatically renew the original term at the initial interest rate.
According to Part I – Annex 3 Decision 36/2014 / TT-NHNN has guidance on overnight deposits, according to which overnight deposits are understood as deposits within the period from the end of the previous working day to the next consecutive working day. The end of the working day is determined as the time of the credit institution’s trading hours, when the credit institution prepares the inflow and outflow table to monitor, manage the prescribed solvency ratio in Article 15 of Decision 36.
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The Benefits of Overnight Deposit Product
For depositors
For individual customers who are used to keeping cash at home for fear of risks, they can now deposit money with a short-term limit of only 24 hours with many attractive benefits as follows:
Fast liquidity, high interest rates, and safety.
In addition, customers can deposit and withdraw money anytime.
For banks
The overnight deposit product brings benefits to the banks. Large banks can use this source of funds and turn them into capital for the market with much higher interest rates.
In addition, for small banks, this is an opportunity to help reduce liquidity pressure, have more money to circulate flexibly every day.
