What is an overnight savings deposit?

What is an overnight savings deposit?

Overnight savings deposits are short-term savings deposits, valid for 24 hours, offered by individual customers through personal deposits and savings accounts. They are highly liquid and help customers manage their capital effectively.

Customers can make multiple deposits via cash or bank transfer and earn interest 24 hours after the deposit is made.

The method of depositing savings overnight is simple and fully supported by banks, such as depositing cash, transferring funds, and allowing for multiple deposits.

Another attractive feature is that your money will be repaid within 24 hours of deposit at a highly competitive interest rate compared to other banks. The interest will be added to the principal and will automatically renew for the same term at the original interest rate.

According to Part I – Appendix 3 of Circular 36/2014/TT-NHNN, which provides guidance on overnight deposits, overnight deposits are understood as deposits held during the period from the end of the previous working day to the next working day. The end of the working day is defined as the time when the credit institution's trading hours end, when the credit institution prepares a cash inflow and outflow table to monitor and manage the solvency ratio as stipulated in Clause 1, Article 15 of Circular 36.

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Benefits of overnight savings products

For the sender

For individual customers who are used to keeping cash at home due to risk, they can now deposit money for a short term of just 24 hours with many attractive benefits such as the following:

High liquidity, high interest rates, and security.

Additionally, customers can deposit and withdraw money at any time.

For banks

Overnight savings products offer benefits to banks. Large banks can utilize this capital and convert it into loan capital for the market at much higher interest rates.

Furthermore, for smaller banks, this is an opportunity to reduce liquidity pressure and have more funds to circulate more flexibly each day.

Minh Huong (compiled)

Source: https://vtc.vn/tien-gui-tiet-kiem-qua-dem-la-gi-ar852139.html