Saving money in the bank is a safe and profitable investment form chosen by many people, so what is the best savings term to choose?
Savings is a form of customer depositing a sum of money into a bank for a certain period of time and receiving the principal and corresponding interest. Normally, the deposit term will be from 1 month to 36 months, depending on the product of each bank.
When making term deposits, customers can choose many maturity methods such as extending principal and interest, extending principal or transferring interest to a payment account...
Should I save long term or short term?
According to financial experts, saving for long or short terms depends on the customer's need to use their idle money.
In case of needing to raise capital quickly for investment or business, you can choose short-term savings of less than 3 months. At that time, customers will receive interest and have money to handle the work. In which, a 1-month term deposit is the most suitable. Because most banks list the same interest rate from 1 to 3 months. Therefore, after 1 month, the depositor can withdraw the interest and principal before deciding whether to continue depositing or not.
On the contrary, if you do not need to use your idle money for a long time, you should choose a long term to receive a high interest rate. If it is 6 - 8 months, you should deposit for a 6-month term. If you do not need to use your idle money for the next year, you should choose a 12-month or 13-month savings term.
Interest rates for 12 and 13 month terms are often higher, and there is even a policy of adding interest to attract depositors.
According to analysis by financial experts, the more competitive the interest rate, the higher the benefit of long-term savings.
Who is suitable for term deposits?
Term deposits are suitable for people with idle money that they do not need to use for a certain period of time, such as retired elderly people, workers, civil servants, and customers with passive income.
Term savings are also suitable for customers who want to optimize profits or are able to commit to time.
Long-term savings have the advantages of being safe, profitable, better financial management and limited risk.
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