Demand deposits are a popular choice for many individual customers who need flexible cash flow management, proactive deposit and withdrawal options, and security. This article will help you understand the true nature of demand deposits, how interest is calculated, compare them to time deposits, and suggest optimal solutions from SeABank.

Note: The data and content in this article are compiled from general market sources and do not apply specifically to SeABank's products.

1What is a demand deposit?

According to Circular 48/2018/TT-NHNN, demand deposit savings accounts are accumulated funds of individuals that the depositor has the right to withdraw at any time during any banking business day, without prior notice and without any deposit term restrictions.

Simply put, this is a form of deposit that prioritizes liquidity, suitable for funds used for short-term expenses, emergencies, or cash flow.

Key characteristics of demand deposits

Confirmation method: Recorded through savings passbook/card or electronic account on the bank's system.
High flexibility: Customers can deposit or withdraw money according to the bank's regulations and transaction hours. without affecting the remaining amount of money.
Deposit insurance: This amount is covered by deposit insurance regulations, helping to protect the rights of depositors.

Demand deposits allow for flexible withdrawals or transfers of funds. active.

2Comparison of Demand Deposits and Time Deposits

The choice of deposit method depends on your capital utilization plan. The comparison table below clarifies the differences between two popular deposit methods:

Criteria	Demand deposits	Time deposits
Duration	Not fixed, flexible depending on the day.	Fixed term (1, 3, 6, 12... months).
Interest rate	Usually low (depending on the bank and term).	Much higher (depending on the bank and term).
Withdraw money	Withdraw anytime, interest rate remains unchanged.	If you withdraw before maturity, the withdrawn amount will only earn interest at the non-term rate.
Settlement	Flexible, no prior notice required.	You need to notify us in advance if you are withdrawing a large amount of money.
Object	People who need to use money regularly..	People with spare cash and a clear financial plan.

In general, demand deposits are not intended to generate high returns, but rather serve as a safe place to keep money ready for spending.

Interest rates on demand deposits are much lower than those on time deposits.

3. Interest rates and calculation methodsinterest on depositsno term

In terms of interest rates, demand deposits are subject to strict regulation by the State Bank of Vietnam.

According to Decision 575/QD-NHNNRegarding the maximum interest rate applied to demand deposits, the current interest rate ceiling is set at no more than 0.5% per year. In practice, during the period 2025–2026, the prevailing interest rates at major banks typically range from 0.05% to 0.2% per year.

Interest calculation formula:Interest is calculated based on the actual outstanding balance and the actual number of days the deposit was made.

Interest earned = (Deposit amount * Number of deposit days * Annual interest rate) / 365

Example: If you deposit 100,000,000 VND at an interest rate of 0.2%/year for 30 days, the interest received will be: (100,000,000 * 30 * 0.02)/365 ≈ 16,438 VND

Understanding interest rate regulations helps customers choose the most suitable deposit method.

4. Smart Savings Solutions at SeABank

To meet the need for both flexible cash flow and optimized profitability, SeABank is launching Smart Savings - a suitable solution for customers who do not want to "freeze" their money but still want to earn better interest than a regular checking account.

Key benefits

Higher returns: Higher interest rates compared to regular current account deposits.
Flexible deposits and withdrawals: No limits on the number of transactions or the amount deposited.
Low starting limit: Subject to SeABank's terms and regulations from time to time, providing access opportunities for all customers.

Trading methods

Payment: Free of charge via SeAMobile App, SeANet Internet Banking, ATM, or at the counter.
Withdrawal: Quickly transfer funds to your payment account via the app for use, or withdraw directly at a bank counter.

SeABank's Smart Savings solution allows customers to deposit and withdraw flexibly with optimal returns.

Hopefully, this article has answered your questions about demand deposits. This is a smart money management tool for unexpected expenses, helping idle money earn interest every day without time constraints. If you need to learn more about Smart Savings Solutions, please contact SeABank directly for quick and accurate support.

Southeast Asia Commercial Joint Stock Bank (SeABank)

Address: BRG Building, 198 Tran Quang Khai Street, Hoan Kiem Ward, Hanoi
Call Center: KHCN 1900 555 587 / (024) 39448702 - KHDN 1900 599 952/ 024-32045952
Customer service email: contact@seabank.com.vn