saving account

New Regulations For Foreigners

We would like to inform you of amended circulars pertaining to foreigners, issued by the State Bank of Vietnam, with regard to opening of accounts, debit cards, savings accounts and term deposit accounts.

1/ REQUIRED DOCUMENTS TO OPEN A BANK ACCOUNT

If you are a foreigner and 15 years old or above, you can open a Timo bank account at Timo Hangouts. You will need to bring your original valid passport in an identifiable condition, as well as one of the following documents:

Visa, OR
Temporary Resident Card (TRC), OR
Permanent Resident Card (PRC).

The validity of the residential documents, as listed below, will be used to determine the services that are available:

Note:

Foreigners who can prove their continuous residential status in Vietnam for at least 180 days are eligible to open one or more Term deposits. The term of the deposit cannot exceed the remaining validity of their residential documents in Vietnam.
Similarly, foreigners who can prove their continuous residential status in Vietnam for at least 365 days are eligible to apply for NAPAS and Visa Debit Virtual cards.

2/ SAVINGS ACCOUNTS
As stated in Circular Nos. 48 & 49/2018/TT-NHNN, the State Bank of Vietnam has modified the conditions for foreigners to hold savings and deposits with banks in Vietnam as follows:
Goal Save Accounts

Foreigners are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN effective 5 July 2019
If your Goal Save balance is 0 VND or below by 5 July 2019, you will not be able to open a new Goal Save account.
Contributing towards your existing Goal Save Accounts will be unavailable from 5 July 2019. All existing funds must be moved into your Spend account before 31 July 2019.
By the end of 31 July 2019, your Goal Save account will be disabled, any remaining balance will be forced to moved to your Spend Account.

Money Pots

According to Clause 5, Article 14a of Circular 23/2014/TT-NHNN (amended and supplemented by Circular 16/2020/TT-NHNN) issued by the State Bank of Vietnam, the provision of electronic payment accounts is not applicable for individual customers who are foreigners. Consequently, Timo Digital Bank wishes to inform our foreign customers about the following changes concerning your Money Pot account:

For foreign customers currently using and having a balance in the Money Pot account:

If you wish to continue using this account, please arrange to visit a Timo Hangout to sign an additional request for use of the Money Pot account before August 26, 2023.
If you have no need for this account, kindly transfer the current balance in your Money Pot account to your Spend Account.

For foreign customers who have no balance in the Money Pot account: Your Money Pot account will be automatically deactivated. If you wish to continue using this account, please arrange a visit to a Timo Hangout to sign an additional request for use.

For foreign customers who do not have a Money Pot account: If you wish to use this account, please arrange a visit to a Timo Hangout to sign an additional request for use.

For foreign customers newly registering for a Timo Digital Bank account: Our a Timo Care Representative will advise you on registration and usage of the Money Pot account, if you wish to use it.

Term Deposit Accounts

From 5 July 2019, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity.
Existing Term Deposits opened before 5 July 2019 will be continued until its maturity.
In the event that you do not satisfy the requirements above and have not updated your Valid Visa or Resident Card details with us, please visit your nearest Timo Hangout to update them and to continue enjoying an uninterrupted banking experience.

Read about the detailed Circulars mentioned above below:

For any questions or concerns, please kindly contact our Timo Care team via email care@timo.vn or via the Call Centre on 1800 6788.

/by Timo MKT

Saving Accounts

DIFFERENCES BETWEEN TRADITIONAL SAVINGS VS. ONLINE SAVINGS

Saving money is one of the common modern financial activities in today’s word. Compared to several traditional forms of saving such as piggy bank, saving money in a safe, opening a savings book, etc., there has been a new smart savings form called online savings.

Since it has been developed, online savings has been preferred by a large population of people due to its certain amount of benefits. So what makes it different than traditional savings and why is it preferred? Find out the differences between traditional savings and online savings in the following article.

What is traditional savings?

Traditional savings is a form of savings provided by most banks to help people keep their money in a safe place or even earn interest from it. Upon opening a traditional savings account, customers will be required to choose a fixed deposit term that comes with a fixed interest rate. All procedures of traditional savings are usually carried out at the bank’s branch, from opening a savings book/account to the withdrawal of their savings account.

What is online savings?

Online savings is a widely used form of savings in today’s digital world. This form of savings helps people to open a savings account anytime and anywhere via their electronic devices instead of having to visit a bank’s branch. Banks offering this form of savings also provides attractive interest rates and flexible deposit terms for their customers.

Differences between traditional savings vs. online savings

In general, both of these forms of savings bring financial benefits to people as they both help people to keep their money in a safe place and generate profit from their savings amount. However, they are different in the way they work and can be used.

	Traditional savings	Online savings
Create a savings account	– To open a savings account, you would have to arrange your time to be suitable with the working hours of the bank. As most banks have a system where you have to wait for your number to be served, this can also be time consuming. – Traditional banks also require several different procedures and documents. A few words of errors can also mean that you have to fill out the required documents again.	– Being available 24/7 is one of the most outstanding features of online savings. As long as your device is connected to the Internet, you can create a savings account anytime and anywhere instead of going to the bank. – Opening an online savings account does not require several different documents and can be done within a few steps.
Maintain a savings account	– Once you open a savings book, you would need to keep it carefully. If you lose your savings book, you would have to wait several weeks and go through a variety of verification procedures to get a new one. – You would have to pay different service fees associated with savings, such as penalty fee for early withdrawal.	– As every procedure is digitalized, you would not need to worry about keeping your savings book safe. – Online savings can also allow people to split their savings amount into smaller accounts to make sure they do not lose all of their interest in cases they need to withdraw some money from their savings amount ahead of time. – Fees associated with savings are minimized or even free.
Withdraw a savings account	– At the end of your chosen deposit term, you must visit your bank to complete the settlement and sign relevant documents. At certain traditional banks, you are only allowed to withdraw your money at a branch where you open your savings account. – If you withdraw your savings account ahead of time, you will lose all the interest that you can possibly earn.	– At the end of your chosen deposit term, you can withdraw your money directly in the app or via the bank’s website. – If you split your savings amount into different savings account, this will help you to maintain interest for the other savings account that are not withdrawn ahead of time.

If you are the type of people who like things to be carried out quickly without any hassle, online savings is a suitable form of savings for yourself. In addition to all the convenience it comes with, online savings can also provide other benefits such as flexible terms, attractive interest rates, safety. With online savings, people can easily save the time and effort that they would have to spend if they choose to open a traditional savings account.

If you are interested in online savings, check out some of the main benefits and features of Timo Term Deposit below:

1/ Various terms to choose from: Timo Term Deposit offers several flexible terms from 1 month to 18 months

2/ Attractive interest rates: From 5.1% to 7.6% per year

3/ Allow users to open a savings account at only 1.000.000 VND

4/ The number of Term Deposits you can create are unlimited

5/ Suggests and recommends that users split their savings amount into small Term Deposits in order to minimize their interest losses in cases when they have to withdraw a portion of their savings ahead of time.

Hopefully the above article will help you to find a suitable form of savings for yourself. If you are interested in learning more about Timo Term Deposit, you can also check out another article about Timo Term Deposit here.

Important notes:

From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.

Read the official announcement

/by Chi Pham

Useful Tips

When to use Goal Save and when to use Term Deposit?

Both Timo Goal Save and Timo Term Deposit are useful tools that can help you to store your savings money. However, depending on your purpose of saving and use, Goal Save and Term Deposit would be suitable for different purposes. Find out when you should you use Goal Save and when you should use Term Deposit in the article below.

Important notes:

From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.

Read the official announcement

When should you use Goal Save?

If there are specific goals you need to achieve in the future, Goal Save will help you to do this as easy as pie. Goal Save allows you to create as many Goal Save as you need. To help you achieve your goals on time, upon creating a new Goal Save, you will be asked to choose or fill in all the important elements related to your Goal Save, including: the amount of money you need for your goal and the date you need it. You will be supported from the planning step through the process of saving for your goals.

For those who have a high spending habit, Goal Save will be useful for them due to the following reasons:

– The money you save will not be violated and will not be used for unnecessary matters

– Your goals can be achieved effortlessly with Goal Save’s automatic recurring contribution feature where, if it is active, the money in your Spend Account will be automatically transferred to your goal every day, week or month (depending on your chosen contribution frequency).

– You future plans can be easily achieved on time

When should you use Term Deposit?

Do you have a certain savings amount that you do not want to put into investment yet? You can still generate profit from this savings amount with Term Deposit.

Term Deposit is a convenient tool for users as it allows you to open a savings account online while having full control of your Term Deposit anytime and anywhere. In addition to attractive interest rates and flexible terms, with Term Deposit, you can also split your savings into several small Term Deposit to maximize your interest.

Thus, as you can see, your purposes and needs will decide when you should use Goal Save and when you should use Term Deposit. While Goal Save is designed to help people achieve their goals, Term Deposit is for those who want to profit from their savings.

Outstanding features of Timo Term Deposit

If you use Term Deposit, opening and managing your savings accounts will be transparent. All the important information, including: annual interest rate, total interest, due date, balance at due date, etc., will be displayed in the Timo app upon opening a new Term Deposit.

If you plan to save a large amount of money, Term Deposit will suggest you to break it down into several small Term Deposit instead of opening one big Term Deposit. This will help to provide you with the flexibility of using your savings money, as well as maximize your interest. This is because, even if you need to withdraw one of your Term Deposits ahead of time, you can still maintain interest for other Term Deposit that you do not withdraw ahead of time.

The benefits of opening savings accounts with Timo will give you more time to enjoy life as all the procedures can be carried out online instead of having to visit a bank’s branch. Hopefully the above article has helped you to answer the questions of when to use Goal Save and when to use Term Deposit. Find out more about Goal Save here and Term Deposit here.

/by Chi Pham

Saving Accounts

3 REASONS WHY YOU SHOULD START SAVING

Most of us usually spend our youth, along with our time and energy, to explore and experience several different things such as experiencing a job outside of our comfort zone or exploring a new destination. To serve these new and exciting experiences, sometimes we do not mind spending over our financial capability. However, this is one of the reasons why some people usually end up with a low bank account balance at the end of the month. This is also one of the reasons why some people experiencing the lack of money needed for unexpected situations.

Therefore, starting a saving habit is a small action but can bring significant impacts. In addition to the need of saving to protect yourself better, savings is also necessary for many different reasons. Join us in finding out some reasons why you should start saving in the article below.

1/ Save money to protect yourself better during unexpected situations

Imagine what it would be like if an unexpected matter happens and you do not have enough money to deal with it? In these cases, the only solution you can have is probably borrowing money from someone else or getting a loan. It would be fortunate if you can find money to pay off your debt immediately afterwards. However, if another unexpected matter happens while you are still having a debt to handle, this can lead you to a situation where all your debts combined are unaffordable.

As life sometimes can be unpredictable where things can just happen unexpectedly, it is important that you have some money saved for these unexpected matters. These unexpected matters could be illness or damage to certain devices needed for your daily life that requires a fair amount of money to repair. In these cases, if you have a savings amount available, you will be completely proactive in solving these problems instead of having them affect you or people around you.

2/ Save money to balance your life

To give yourself a comfortable lifestyle, one of the very first things you would need to do is to be proactive and dependent in your personal finance. The more you are worried about money, the less calm your mind will be. Your mind can totally focus on your career and enjoying life when you are not worried about money. This is why many people with average income can still have a comfortable life as they know how to spend their money reasonably.

People’s needs for spending are always growing. A lot of people also tend to have a higher spending need when their income increases. A healthy savings habit will help you to balance your life and keep you away from the desire of spending money, even when you have more money to spend.

3/ Save money to make more money

This might sound a bit absurd at first but, in fact, it can totally be possible.

With an available savings amount in hand, you can invest it in different areas and plans you might have such as education, starting a small business, investment in stock, etc. This can help you to earn back a greater amount of money than your original savings amount. Your savings can easily generate profit if you know how to use it effectively. However, to get this done, first you would need a fair savings amount first.

Saving money can be challenging for anyone. However, hopefully the reasons above will motivate you to start building your own saving habits. To improve the efficiency of saving, you can try out different saving methods depending on your habits and desires. Find out if Timo Goal Save and Timo Term Deposit would be suitable saving methods for yourself.

Important notes:

From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.

Read the official announcement

/by Chi Pham

Saving Accounts

How to make sure you always pay your rent on time with Timo Goal Save?

Renting accommodation is a common scenario for several age groups, such as university students, expats or those who cannot afford to buy their own houses yet. This is why rent payment is a recurring task that requires rent to be paid during a fixed term (monthly, quarterly etc) and with a fixed amount of money (as per rental agreement). What method are you currently using to make sure your credibility is assured while your rent is paid on time?

To help people have more time to focus on their education or their jobs instead of always having to worry about sorting out their rent, Timo Goal Save is offered to ensure users can save money and achieve their goals effortlessly.

Important notes:

From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN.

Read the official announcement

To make sure you always have your rental payment ready in time, in addition to the support of Timo Goal Save, always make sure you prepare and start saving for the next month’s rent payment from the current month itself. This method of saving for your next month’s rent can be done in 3 steps:

1/ Identify the number of weeks in the following month

To make sure your following monthly rent is fully accumulated on time, the first thing you need to do is to determine the number of weeks in the following month. By determining the number of weeks in the following month, you will have a brief idea of how many weeks you will have in the current month to save money for the following monthly rent and manage your personal financial situation better.

2/ Activate the “Automatic Recurring Contribution” feature in Timo Goal Save

This feature helps users to accumulate enough money for all their saving goals without having to remember. You should activate this feature upon creating a Goal Save for your following monthly rent and set the recurring contribution to be automatically done weekly. After activating this feature, your following monthly rent will be automatically accumulated every week through transferring money from your Spend Account to your Goal Save. This smart feature will help you to ensure that you have enough money in the Goal Save created for your following monthly rent when the rent is due.

3/ Make sure your target date is set to be at least 1 or 2 days before your due payment

Upon creating a Goal Save for your following months rent, you should also take into consideration the starting date and the target date for your Goal Save. Specifically, you should choose the target date for your following monthly rent to be at least 1 or 2 days before your payment is due. This gives you time to make sure that you have enough money and time to withdraw or transfer the rent to your landlord.

Example:

Let’s say today is the 1 May 2019 and you want to save for your following months rent, to the tune of 20.000.000 VND, which is due on the 1 June 2019. As there are 5 weeks in May, your following months rent will be accumulated across 5 weeks. Upon creating a Goal Save for your rent on June, set your Automatic Recurring Contribution feature to weekly and you will see that the suggested amount you need to contribute each week is 5.000.000 VND. To pay on 1 June 2019, select your target date to be either 30 May or 31 May 2019.

As you can see, within just a few simple swipes and taps in the Timo app, you can always ensure that your monthly rent is paid on time. If you are currently struggling with paying your monthly rent on time, try the above method to enhance your credibility as well as the appropriate separation in your spending.

/by Chi Pham

Saving Accounts, Useful Tips

What is personal budget? Why should you plan your personal budget early?

One of the most important things in effective personal financial management is to make sure you do not spend more than you earn. To do this successfully, you need a personal budget. A personal budget will act as your personal financial limit to help you manage your financial situation more effectively.

What is personal budget?

Personal budget is basically a personal financial plan that includes both your income or expenses. Based on this set personal budget, you will be able to control your financial flow more effectively. The main purpose of a personal budget is to forecast and estimate your own income and expenses over a certain period of time. For instance, when you plan a budget for a holiday, you need to plan all the expenses of the trip in order to prepare and make sure you do not overspend on the trip.

Why should you plan your personal budget early?

Your personal expenses can be incurred for various purposes and needs, like daily necessities such as food, accommodation, etc. to larger expenses such as savings, investment, debt repayment, etc. If there is personal budget planned, it is very likely that you will not go broke before the end of the month or find yourself in a larger amount of debit than anticipated.

When you have a personal budget ready, you can easily spend and manage your money as planned without facing any issue. You can rest assured that you will always have enough money to cover all of your expenses and plans that you have set beforehand. Additionally, if you set a clear personal budget, any of your debts can also be resolved quickly and in time.

How to plan an effective personal budget?

Everyone would have a different personal budget as each of us has a different amount of monthly income and personal expenses. However, an effective personal budget can be evaluated through its ability to cover all personal expenses.

Below are some tips to help you plan your personal budget more effectively:

– After planning your personal budget, you should have a specific savings strategy to make sure your personal budget is accumulated accordingly.

– Always keep track of your actual spending and compare it with your personal budget in order to come up with the most accurate estimate for your next month’s personal expenses

– Always compare your monthly expenses with your monthly income for appropriate adjustment

What are the available tools that can help you plan your personal budget effectively?

There are several available mobile applications that can help you plan and monitor your monthly budget effectively, such as: Mint, Level Money, GoodBudget, etc.

Although Timo is a digital bank, our Timo app and Goal Save feature can also help you to plan your personal budget and manage your financial situation. With Timo Goal Save, you can set up your budget and activate the automatic recurring contribution feature to have money automatically moved from your Spend Account. In addition to Goal Save, Timo also has many other banking products and services that are convenient and easy to use. Find out more here.

Important notes:

From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.

Read the official announcement

/by Chi Pham

Saving Accounts

Timo Term Deposit – A smart solution to earn additional income from your savings

Are you currently waiting for several things to happen before opening a savings account? For instance, you might be waiting to have enough money, or you already have enough money but do not have free time to visit your bank to open a savings account. With Timo Term Deposit, you do not have to go to the bank as every step and procedure can be done in minutes right in the Timo app.

Outstanding features of Timo Term Deposit

1/ Various terms to choose from: Timo Term Deposit offers several flexible terms from 1 month to 18 months

2/ Attractive interest rates: From 5.1% to 7.6% per year

3/ Allow users to open a savings account at only 1.000.000 VND

4/ The number of Term Deposits you can create are unlimited

5/ Suggests and recommends that users split their savings amount into small Term Deposits in order to minimize their interest losses in cases when they have to withdraw a portion of their savings ahead of time.

Important notes:

From 5th July 2019, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.

Read the official announcement

How to use Timo Term Deposit?

Opening a Term Deposit

In the Main Menu of the Timo app, swipe left at Term Deposit to open a new savings account. After that, enter the amount of money you wish to save and choose a suitable term to see other details related to your Term Deposit, including: annual interest rate, total interest, balance at redeem date. As different terms come with different interest rates, click on different terms to see which balance at redeem date would interest you the most before tapping on Next.

With a large amount of savings, Timo will recommend that you split your Term Deposit into 4 smaller Term Deposits to minimize the interest losses when you have to withdraw some of your money ahead of time. This suggestion will also come with all relevant information you need to know, such as: deposit amount of each Term Deposit, interest on each Term Deposit, total interest, balance at redeem date. As this is only a suggestion, you will be the one who makes the final decision on opening 1 Term Deposit or 4 smaller Term Deposits.

Additionally, upon swiping left at Term Deposit, you can also tap on Interest Rate to see different annual interest rates set for different terms. If there is an annual interest rate that catches your attention, you can also tap on it to open a Term Deposit right away.

Term Deposit Gallery

Once you have at least 1 Term Deposit created, you can tap on the Term Deposit section to see your Term Deposit Gallery. Your Term Deposit Gallery will show every Term Deposit you currently have, as well as the ones you created and already redeemed.

When you want to withdraw your Term Deposit ahead of time, Timo will let you know your earned interest if you withdraw at that time and your earned interest if you withdraw your Term Deposit on your set redeem date. This information will help you to make the right decision for yourself when you plan to withdraw your Term Deposit ahead of time.

As you can see, Timo Term Deposit is built on the basis of ensuring the highest level of profitability for users while maintaining flexibility. Open a Term Deposit now to see if it is actually an ideal solution of earning extra income from your savings. Find out more about Timo Term Deposit here.

/by Chi Pham

Tin tức Khuyến mãi

Why is Timo a good fit for stay-at-home moms?

International Women’s Day is one of those times in the year, when all mothers should be pampered and showered with love and care from other family members. And it would be a shame if they have to spend all their time managing daily expenses instead of enjoying themselves. However, with Timo, daily expense management can be done painlessly within a few taps and swipes.

Pay all monthly bills in the Timo app

Paying utility bills can be done quickly and conveniently from your Spend Account. Your bills can be conducted and retrieved through your customer ID or contract ID. To meet different needs, Timo provides a wide range of service providers, including:

– Electricity: EVN HCM City, EVN HN City, EVN Mien Trung

– Water: Ben Thanh, Cho Lon, Phu Hoa Tan, Nha Be, Trung An, Tan Hoa, Thu Duc, Gia Dinh

– Internet: FPT, VNPT, Viettel, SPT, CMC TI HCM, CMC TI Da Nang

– Cable TV: VTV, Hanoi Cable, An Vien, MyTV

– Life insurance from Sun Life Vietnam

Bill pay via the Timo app is entirely free. It also frees all mothers from going through the hassle of gathering physical cash and visiting multiple local offices to pay for the family’s bills. Instead of having to spend time and effort to pay every monthly bill there is on time, this can be done easily within a few swipes and taps in the Timo app. If they want to check a status of a bill, they can also do this easily by checking the Bill List.

Achieve all saving goals easily with Goal Save

In addition to managing everything in the family, mothers also usually plan and manage the family’s finances appropriately. This can be a challenge as there can be a countless expenses and things to be saved for. This is where Timo Goal Save can come in as a helpful assistant to help moms save effectively.

Timo Goal Save is one of the smart features that can help you save effectively for all your set goals. Depending on circumstances and needs, your saving goal might be for a new car, a new fridge or a family vacation. The juggle between managing expenses and having to achieve saving goals can easily be stressful and often lead to one abandoning their savings goals.

However, with Timo Goal Save and it’s automatic recurring contribution feature, mothers would just need to set their target and savings amount and money will be automatically moved from their Spend Account to the set Goal Save.

Shop anywhere and anytime with free POS swipes

Timo does not only support moms by helping them pay bills and plan their savings right from their phone, but also makes shopping easier and more enjoyable. With a Timo Debit Card, mothers would not need to remember to bring enough cash to shop for the family as they can use their Timo Debit Card to swipe at any local POS machine in Vietnam for free.

Hopefully the benefits highlighted above are enough to convince you of how Timo would make a good fit for any stay-at-home mom. Introduce your wife or mother to Timo and let our digital banking experience make their lives easier and give them more time to enjoy life!

/by Chi Pham

Timo Library

Should you open a savings account to earn interest?

Do you have a decent amount of savings but are unsure how to generate a profit from it? For people who are up to the challenge, their savings might be used in different areas such as opening a business, investing in securities, etc. For people who prefer stability, they would choose to put their savings into their bank to earn monthly interest. Read the article below to discover why you should open a savings account, how you can earn interest and other factors to be consider before opening a savings account.

REASONS WHY YOU SHOULD OPEN A SAVINGS ACCOUNT

Some people often think that opening a savings account does not generate as much profit as using it for investment purposes such as real estate, securities investment, etc. Hopefully the reasons provided below would help you to have a different perspective of opening a savings account.

1/ Profit is guaranteed

This is the most obvious benefit when it comes to opening a savings account at a bank as your savings will continue to generate the same amount of interest every month. You can either choose to receive your monthly interest per month, or wait until the end of the term and extend your savings account, plus interest, to continue generating more interest.
With a savings account at a bank, you need not worry about situations where your investment leads to losses. Instead of worrying about the plummeting stock prices or how to make your business run smoothly while generating enough profit, you just have to sit back knowing that your savings account is generating a profit by itself.

2/ Flexible in withdrawing your savings account

To offer a convenient experience to customers, most banks have allowed customers to withdraw from their savings account ahead of time. Although this is not encouraged as it would not bring you as much interest as it could, however, most banks have offered this so that customers can get their money back in cases of emergencies or unexpected problems.

WHAT DO YOU NEED TO CONSIDER BEFORE OPENING A SAVINGS ACCOUNT?

1/ Choose a suitable term

Most banks offer several duration for savings (from 01 to 18 months or even longer). The longer the term, the higher the interest rate. Hence, before putting money into your savings account, you need to carefully evaluate your financial situation to have an estimate of how long you can go without using this money. This will help you to choose the most suitable term for yourself.
For instance, you have 10.000.000 VND in savings and you expect not to use this money for at least the next 8 months. In this case, you can choose the term of 6 months for your savings account.
Banks nowadays are also transparent in withdrawing and getting interest. You will get a quarterly or monthly notice of your earned interest and the remaining length of time before your due date to be more proactive in deciding to either continue maintaining your savings account or withdraw your money.

2/ Choose a bank with competitive interest rates and a good reputation

Currently there are 3 main banking groups, including: State Bank, Joint Stock Commercial Bank and foreign-invested banks or joint-venture banks.
The level of safety associated with having a savings account at state banks, such as Agribank, Vietcombank, Vietinbank, BIDV, etc, is high. However, their interest rates are likely to be lower than the other two groups.
Joint Stock Commercial banks often offer interest rates that are 1% – 1.5% higher than interest rates offered by state banks. At the same time, banks in the third group are known to offer the highest interest rates.

3/ Choose a bank with a near branch location from your home

This is often overlooked by many people. However, you will not be able to anticipate every unexpected situation that requires you to withdraw your money ahead of time. When you choose a bank with a high interest rate but it is located too far from where you live, this might cause a lot of inconvenience when you need to withdraw your savings account.

DID YOU KNOW?

With Timo, you will not have to worry about choosing a bank with a near branch location from your home as you can easily open a savings account online right in the Timo app. With only 1.000.000 VNĐ, you can open a Term Deposit in the blink of the eye.
Additionally, Timo’s Term Deposit allows users to split their savings amount into smaller Term Deposits. In unexpected situations, this feature will help you to withdraw one Term Deposit ahead of time while continuing to earn interest for the remaining Term Deposits. Find out more about Timo Term Deposit here.

Important notes:
From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.

Read the official announcement

/by Chi Pham

Posts

What is traditional savings?

What is online savings?

Differences between traditional savings vs. online savings

When should you use Goal Save?

When should you use Term Deposit?

Outstanding features of Timo Term Deposit

1/ Save money to protect yourself better during unexpected situations

2/ Save money to balance your life

3/ Save money to make more money

1/ Identify the number of weeks in the following month

2/ Activate the “Automatic Recurring Contribution” feature in Timo Goal Save

3/ Make sure your target date is set to be at least 1 or 2 days before your due payment

Example:

What is personal budget?

Why should you plan your personal budget early?

How to plan an effective personal budget?

What are the available tools that can help you plan your personal budget effectively?

Outstanding features of Timo Term Deposit

How to use Timo Term Deposit?

Pay all monthly bills in the Timo app

Achieve all saving goals easily with Goal Save

Shop anywhere and anytime with free POS swipes

REASONS WHY YOU SHOULD OPEN A SAVINGS ACCOUNT

1/ Profit is guaranteed

2/ Flexible in withdrawing your savings account

WHAT DO YOU NEED TO CONSIDER BEFORE OPENING A SAVINGS ACCOUNT?

1/ Choose a suitable term

2/ Choose a bank with competitive interest rates and a good reputation

3/ Choose a bank with a near branch location from your home

DID YOU KNOW?

Interested?

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