Should I deposit savings without term?

What is non-term savings?

Non-term savings is a method of saving money without being bound by the term and amount of deposit, with an interest rate that is not fixed. Customers can flexibly withdraw money or close the account, without having to wait for the maturity date, while still ensuring safety and increasing profits.

Benefits of non-term savings

Saving without a term brings many benefits such as relatively high interest rates, flexibility, safety, and easy management. However, you need to consider carefully before deciding to deposit money and learn carefully about the conditions and interest rates of the respective bank or financial institution to make the smartest investment decision.

Customers can increase their profits by making non-term deposits. (Illustration photo)

Interest rates: Non-term savings usually have relatively good interest rates, but they will be lower than other savings accounts such as term savings or certificates of deposit.

Flexible: Non-term savings allow customers to withdraw money at any time without paying fees or losing interest like other savings accounts.

Safety: Money is protected and guaranteed safe when deposited in a non-term savings account.

Easy to manage: Savings without a term is an easy way to manage finances. Customers can view their money and track the accumulated profits.

No deposit limit: Unlike term savings, non-term savings have no deposit limit. Customers can deposit any amount that suits their financial capacity.

Suitable for many customers: Non-term savings are suitable for many different customers, including individuals and businesses. This helps people to deposit money into their savings accounts to accumulate.

Interest rates on non-term savings deposits

Interest rates on non-term savings are usually determined by banks and may vary from bank to bank. However, these interest rates are usually lower than term savings due to the flexibility and convenience of the product.

The specific interest rate depends on the interest rate policy of each bank. Normally, banks will announce the interest rate for term deposits periodically, and you need to follow up to get updated information. Checking and choosing a bank with attractive interest rates will help you maximize the benefits of non-term deposits.

Non-term savings is a flexible form of savings.

The formula for calculating non-term interest depends on the interest calculation method of each bank or financial institution. However, the general calculation method is to use the formula:

Interest amount = Deposit amount x Interest rate x Number of deposit days/365

In which, the deposit amount is the amount that the customer deposits into the savings account. The interest rate is the interest rate applied according to the bank's regulations. The number of deposit days is the deposit period from the date the customer deposits to the date the customer withdraws or closes the account.

Each bank or financial institution may apply different interest calculation methods, so you should carefully refer to the information on interest rates and interest calculation methods of the bank or financial institution before depositing money.

Should I deposit savings without term?

Whether or not to deposit a savings account without a term depends on each person's financial situation and needs. However, below are some tips to help you decide whether or not to deposit a savings account without a term.

No specific spending plans in the near future: If you don't have specific spending plans in the near future, you may want to keep money in a non-term account to use in case of emergency, such as home repairs, unexpected medical expenses, or simply to save for larger spending plans in the future.

Plan for a short-term purchase: Holding some of your money in a savings account can help you prepare for that expense without incurring the cost of borrowing money.

When the market is down: When the stock market or real estate market is down, the value of investments can decline. In this case, holding money in a demand deposit account can be a safer option to minimize risk and wait for investment opportunities.

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