Many people want to save money in the bank but do not know how much interest they will receive.

To understand and grasp the cash flow when saving, customers need to know how to calculate bank interest rates.

This article will give you an accurate and simple way to calculate savings interest rates.

Currently, there are two popular forms of savings: term deposits and non-term deposits.

However, both term and non-term savings deposits have the same formula for calculating interest on the savings deposit amount.

Specifically: interest amount = deposit amount x interest rate (%/year) x actual number of days deposited/365

In which, the deposit amount is the initial amount the customer deposits into the savings account.

Interest rate is the annual interest rate of the bank on savings deposits.

Actual deposit days are the number of days between two consecutive deposits. If you withdraw money before maturity, the actual deposit days are counted up to the withdrawal date.

bank.jpg
Savings interest rates are calculated in many ways, depending on the form of savings. Photo: Nam Khanh

This interest calculation formula applies to all forms of savings deposits.

Note that the above interest calculation formula only applies to cases where customers pay off early and on time, not to cases where interest is compounded.

For example, if a customer chooses to deposit savings at Techcombank with a deposit amount of 100 million VND, the interest that the customer receives in specific cases will be calculated as follows:

In case a customer makes a non-term deposit of 100 million VND with an interest rate of 0.5%/year. On the 156th day (ie after about 5 months), the customer needs to withdraw the money. The interest in this case will be calculated as follows:

Interest = 100,000,000 VND x 0.5% x 156/365 = 213,698 VND.

Thus, the total amount the customer receives is 100,000,000 VND + 213,698 VND = 100,213,698 VND.

In case of term deposit , customers have 100 million VND in Phat Loc savings on Techcombank Mobile (apply interest rate for deposits under 1 billion VND).

For terms from 1-36 months, the interest amount that customers receive will be calculated as follows (assuming terms of 1 month, 3 months, 6 months, 9 months and 18 months, each month has 30 days):

Term Interest rate %/year How to calculate interest Amount of interest received (VND)
1 month 3.35 100,000,000 x 3.35% x 30/365 275,342
3 months 3.65 100,000,000 x 3.65% x 90/365 900,000
6 months 4.65 100,000,000 x 4.65% x 180/365 2,293,150
9 months 4.65 100,000,000 x 4.65% x 270/365 3,439,726
12 months 4.85 100,000,000 x 4.85% x 365/365 4,850,000
18 months 4.85 100,000,000 x 4.85% x 540/365 7,175,342
24 months 4.85 100,000,000 x 4.85% x 730/365 9,700,000
36 months 4.85 100,000,000 x 4.85% x 1,095/365 14,550,000

In case of compound interest , customers can calculate the compound interest quickly using the following formula:

A = P(1 + r/n)^(nt)

In which, A is the final accumulated amount
P is the initial principal amount
r is the annual interest rate
n is the number of interest periods calculated in a year
t is the number of years of investment or saving

For example: A customer deposits 100 million VND into a regular savings product online at Techcombank Mobile with an interest rate of 5.55%/year for 5 years. According to compound interest, every year, the interest will be added to the principal amount and a new cycle will begin. Applying the above formula, the amount the customer will receive after 5 years is:

Amount received = 100,000,000 VND x (1 + 5.55%/1) ^ (1 x 5) = 131,006,000 VND.

Details of interest amount by year are as follows:

Year Interest rate %/year How to calculate interest Amount of interest received (VND)
Year 1 5.55 100,000,000 + (100,000,000 x 5.55% x 365/365) 105,550,000
Year 2 5.55 105,550,000 + (105,550,000 x 5.55% x 365/365) 111,408,025
Year 3 5.55 111,408,025 + (111,408,025 x 5.55% x 365/365) 117,591,170
Year 4 5.55 117,591,170 + (117,591,170 x 5.55% x 365/365) 124,117,480
5th year 5.55 124,117,480 + (124,117,480 x 5.55% x 365/365) 131,006,000

(This article is referenced from the consulting information source on Techcombank's website)

Instructions for withdrawing money at ATMs using citizen identification cards Customers can use citizen identification cards (CCCD) to withdraw money at ATMs. Below are instructions on how to withdraw money at Vietcombank ATMs using CCCD.