According to Clause 1, Article 330 of the 2015 Civil Code, the concept of deposit is defined as follows: “Deposit is the act of the obligated party depositing a sum of money or precious metals, precious stones or valuable papers in cash into a blocked account at a credit institution to ensure the performance of obligations. To better understand this topic, let's learn with SeABank the basic information about deposit money and things to know about deposit accounts through the article below.
What is a corporate deposit?
Corporate escrow deposit is a form of deposit of a business at a bank that provides escrow services. This is a method of financial guarantee of a business to the bank or related party, to ensure that the business or organization fulfills its financial obligations.
In simpler terms, a corporate deposit is like a "deposit" to ensure the commitments of the business. Some examples of deposits that can be mentioned are:
- Enterprises participating in project bidding may have to deposit money to prove their financial capacity and commitment to carry out the project if they win the bid.
- Deposit to establish a business/add business lines in the following fields: Security services, debt collection services, real estate business, etc.
- Deposit to ensure the maintenance of business activities in the following fields: Insurance business, multi-level marketing, labor leasing, providing digital signature certification services, and travel business.
How is the corporate deposit applied?
Corporate escrow deposits can be applied in a variety of situations, including:
- Project bidding: Enterprises participating in project bidding must deposit a deposit to ensure contract performance if they win the bid.
- Business registration: Some special business lines require businesses to deposit money when registering.
- Guarantee: A business may post a deposit to guarantee a loan or other obligation.
- Other purposes: Enterprises may use the deposit for other purposes as prescribed by law.
Margin Deposits are applied for various business purposes.
Popular types of deposits today
Margin deposit is a banking service that brings many benefits to customers, especially in business activities and commercial transactions. Currently, there are 5 popular types of margin deposits that are widely used:
Open L/C (Letter of Credit): Is a form of deposit used in international trade transactions, ensuring payment to the seller and ensuring the quality of goods for the buyer. The bank issues the L/C to the buyer, committing to pay the seller if the conditions are met. The L/C usually comes with terms on price, quantity of goods, delivery time, payment terms and necessary documents.
There are several basic types of margin deposits.
Guarantee: This form commits to fulfill the financial obligations of a third party if they fail to perform according to the contract or commitment. Commonly used in commercial transactions, construction contracts, import-export and bidding. There are forms such as contract performance guarantee, payment guarantee, completion guarantee and indemnity guarantee.
Deposit to ensure the issuance of credit cards: Including forms such as depositing cash, precious metals, precious stones in the bank to make a credit card. The deposit is entitled to interest according to the bank's regulations. Customers are not allowed to withdraw the deposit until the credit card is no longer used or the card expires.
Forward Margin: Sign a document to execute a forward foreign currency purchase/sale transaction at a predetermined exchange rate. The margin is paid at a future time. Commonly used in foreign exchange transactions to hedge against exchange rate risks.
Deposits bring many benefits to businesses
Deposit to be allowed to operate business: Applicable to a number of industries as prescribed by law such as: travel business, labor export, multi-level sales,... The deposit level depends on the provisions of the Law for each industry of business activities of the enterprise.
Benefits when businesses use escrow deposit services
Margin deposits offer various benefits to businesses, including:
- Enhance corporate reputation and brand: When a business deposits a deposit, it shows that the business has sufficient financial capacity and is committed to fulfilling its obligations, thereby enhancing its reputation and brand with partners and customers.
- Building trust with partners and customers: Deposits help businesses build trust with partners and customers, thereby promoting cooperation and business development.
- Participate in bidding and projects effectively: Enterprises with sufficient deposit balance will have an advantage when participating in bidding and projects, thereby increasing the chance of success.
- Ensure financial obligations to stakeholders: The deposit acts as a guarantee for the financial obligations of the enterprise, helping to protect the interests of the parties involved.
- Enjoy attractive interest rates on your deposit: Businesses still receive interest from the deposit amount during the deposit period.
Where is it safe to register for a business deposit?
In the context of an increasingly complex business environment, choosing a credit institution to deposit money to ensure safety, reliability and convenience is very important. With these criteria, SeABank is confident in providing deposit services for businesses today. Below is the specific information.
SeABank is currently providing corporate deposit services with many outstanding advantages such as:
- Safety: SeABank is highly regarded for its financial safety, with a strict risk management system and high capital adequacy ratio.
- Reputation: SeABank is one of the most prestigious banks in Vietnam, with a nationwide network of branches and a team of professional, dedicated staff.
- Competitive interest rates: SeABank always updates the most competitive corporate deposit interest rates in the market, bringing optimal benefits to customers.
- Diverse services: SeABank provides many different types of corporate deposits, meeting all customer needs.
- Simple and quick procedures: Customers can easily register for corporate deposits at SeABank through diverse transaction channels.
Use the safe and reputable deposit service at SeABank
Hopefully through today's article, you have understood what a corporate deposit is. With its outstanding advantages, SeABank is proud to be the ideal destination for businesses in choosing a deposit service.
Please contact SeABank immediately at website https://sme.seabank.com.vn/ or Hotline 1900.599.952 (Business customers) to experience safe, reputable deposit services and competitive interest rates. SeABank's team of experienced consultants are always ready to assist you in choosing the product that best suits your business needs.
