When should I make a non-term deposit?

What is non-term savings?

Non-term savings is a form of savings that the depositor can withdraw money on demand without prior notice. This savings deposit has an effective interest rate, which will be lower than the term interest rate.

Normally, consumers choose this form of non-term savings to ask the bank to hold the money for a period of time and withdraw it whenever necessary. Therefore, non-term savings have a short term, even calculated by the day.

Therefore, if you intend to save long term, it is best to choose term savings because the interest rate is much more attractive. Don't forget to find out which bank has the highest interest rate to enjoy the most financial benefits.

Advantages 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.

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Should I deposit savings without term?

Whether to deposit savings without a term or not depends on each person's financial situation and needs.

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 future spending plans.

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.

Minh Huong (synthesis)

Source: https://vtc.vn/khi-nao-nen-gui-tiet-kiem-khong-ky-han-ar851991.html