Savings strategies for managing deposits and interest rates

Financial experts provide guidance for individuals managing savings in Vietnam, emphasizing the importance of aligning deposit terms with liquidity needs rather than focusing solely on high interest rates.

For larger sums, such as 1 billion VND, it is recommended to split the amount into multiple savings books with different terms. This strategy ensures that if funds are needed urgently, only one book is liquidated early, allowing the remaining funds to continue earning their original interest rates. Common mistakes to avoid include locking all funds into long-term deposits without considering potential upcoming expenses like housing or education, which can lead to significant interest losses if funds are withdrawn prematurely.

For smaller amounts or those requiring more flexibility, 6-month terms are suggested. Current market data shows varying rates among Vietnamese banks. For instance, Cake by VPBank offers rates around 7.2% for 6-month terms, with potential increases for first-time depositors. Other institutions like BAC A BANK and PGBank also offer competitive rates for 6-month and 12-month periods, with online deposits often providing better returns.