You can definitely earn interest by depositing money in an ATM. Interest on ATM deposits is calculated at the same rate as a demand deposit. However, the interest rate on ATM accounts is very low, usually ranging from only 0.1% to 0.3% per year.
Therefore, the interest rate is low because the bank will calculate the interest on your money as if it were a savings deposit with no fixed term. You can withdraw the principal whenever you want. The bank cannot use this money to generate other sources of profit.
Many people wonder whether depositing money into an ATM card earns interest. (Illustrative image)
How to calculate interest when depositing money into an ATM card.
When you keep money in an ATM card, the cardholder can withdraw or make payments at any time. Therefore, interest will be calculated by the bank in the same way as a savings deposit without a fixed term.
The formula for calculating interest earned when leaving money in an ATM card is as follows:
Interest = (Principal amount x Interest rate (%/year) x Number of days deposited) / 365.
For example, your bank card currently has 20,000,000 VND with an interest rate of 0.2% per year. If you do not withdraw any money from the card within a year, the interest will be calculated as follows:
Interest = (20,000,000 x 0.2 (%/year) x 365) / 365 = 40,000 VND.
Typically, the money in an ATM card will be charged interest at a non-term rate by the bank, and the monthly interest will be paid directly into the customer's account.
Gia Hung (Compiled)
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