Deposit Ladder Calculator (VND)
If you keep savings in Vietnamese term deposits, you face a familiar trade-off: longer tenors usually pay a higher posted rate, but breaking a deposit early drops you to a near-zero demand rate. A deposit ladder (the local version of a CD ladder) solves this by splitting one lump sum into several rungs with staggered maturities — most commonly 3, 6, 9 and 12 months for a four-rung ladder.
Take 600.000.000 VND split into 4 equal rungs of 150.000.000 VND each, at an illustrative 5.5%/year assumption. Over one full cycle — until the 12-month rung matures — the ladder earns about 20.625.000 VND in interest. Annualised, that is a blended 20.625.000 VND/year, an effective rate of roughly 3.44%/year on the whole pot. That sits below the 12-month rate (because some money is parked at shorter, lower-paying tenors) but well above keeping everything in rolling 3-month deposits.
This is the liquidity-versus-yield trade-off made concrete. The ladder gives up a little yield in exchange for a rung maturing every 3 months — cash you can spend or, if you do not need it, roll into a fresh longest-tenor rung. After a few cycles every rung is a 12-month deposit, but they mature on a staggered schedule, so you capture almost the full 12-month rate while never locking up everything at once. The calculator above lets you set the total, number of rungs, tenor step and expected rate, then shows the per-rung amount, total interest and when the next rung matures.
One caveat applies throughout: the 5.5%/year figure is an illustrative assumption, not a quote. Real Vietnamese deposit rates vary by bank, tenor and date — check current posted rates and enter the actual rate for each tenor.
How the ladder is calculated
Splitting into rungs and per-rung interest
The total is divided equally into N rungs: each rung = total ÷ number of rungs. With a 3-month tenor step and 4 rungs, the tenors are 3, 6, 9 and 12 months.
Vietnamese term deposits pay simple interest at the per-annum rate over the days held, so each rung's interest at maturity is:
Rung interest = Rung amount × Annual rate × (Tenor months ÷ 12)
| Symbol | Meaning |
|---|---|
| Rung amount | Total ÷ rungs (e.g. 600.000.000 ÷ 4 = 150.000.000 VND) |
| Annual rate | Posted deposit rate as a decimal (5.5% = 0.055) |
| Tenor months | The tenor of that rung (3, 6, 9, 12...) |
The calculator sums the interest of all rungs across one cycle (until the longest rung matures), then divides by the cycle length in years to produce the blended annual interest and the effective rate on the whole pot.
Blended interest and effective rate
Because the rungs have different tenors, you cannot simply average the rates. The tool annualises everything: total cycle interest ÷ cycle length in years. For the default inputs the effective rate works out to about 3.44%/year — between the short- and long-tenor rates, exactly what a balanced ladder should produce.
The cycle and rollovers
After the first cycle, whenever a rung matures you roll it into the longest tenor (12 months here). Once the ladder matures, every rung is a 12-month deposit but they come due in staggered 3-month intervals — so you earn close to the full 12-month rate while still seeing cash return regularly. That staggering is the whole point versus dumping everything into one 12-month deposit.
What the model leaves out
The calculator assumes a constant rate for every tenor and every cycle, treats one month as 1/12 of a year, ignores taxes and fees, and does not model early withdrawal (which would drop you to a near-zero demand rate). Real rates move over time and the spread between tenors changes, so treat the output as a scenario, not a promise.
Worked example: 600.000.000 VND in a 3/6/9/12-month ladder
Illustrative assumptions: a 5.5%/year rate on every tenor, simple interest over the months held, no early withdrawal. Each rung holds 150.000.000 VND.
| Rung | Tenor | Amount | Interest at maturity | Matures in |
|---|---|---|---|---|
| 1 | 3 months | 150.000.000 | 2.062.500 | 3 months |
| 2 | 6 months | 150.000.000 | 4.125.000 | 6 months |
| 3 | 9 months | 150.000.000 | 6.187.500 | 9 months |
| 4 | 12 months | 150.000.000 | 8.250.000 | 12 months |
| One cycle total | 600.000.000 | 20.625.000 |
Over one 12-month cycle the ladder earns 20.625.000 VND, a blended 20.625.000 VND/year — an effective 3.44%/year on 600.000.000 VND. The first rung matures after just 3 months, freeing 150.000.000 VND to spend or roll over.
Against the two extremes
| Strategy | Interest per year | Liquidity |
|---|---|---|
| Everything in one 12-month deposit | 33.000.000 | Poor — all 600.000.000 VND locked for a year |
| 3/6/9/12-month ladder | 20.625.000 | Good — a rung matures every 3 months |
| Everything in rolling 3-month deposits | 33.000.000 | Best — but the lowest yield |
A single 12-month deposit earns the most (33.000.000 VND) but locks up the entire balance; the ladder accepts 12.375.000 VND less per year in exchange for a maturity every 3 months. For an emergency buffer or money you might need mid-year, that is a sensible price for flexibility. If you are building a cash reserve, pair this with FiMo's emergency fund calculator.
Frequently asked questions
What is a deposit ladder?
A deposit ladder splits one lump sum into several rungs with staggered maturities instead of locking everything into a single tenor. A common version is a four-rung 3/6/9/12-month ladder: a rung matures every 3 months, giving you cash to spend or roll over. It aims to keep money regularly accessible while still capturing close to the longer-tenor rate.
How much interest does a 600 million VND ladder earn?
Under an illustrative 5.5%/year assumption: 600.000.000 VND split into 4 rungs of 150.000.000 VND each earns 20.625.000 VND over one 12-month cycle — an effective rate of roughly 3.44%/year. Per rung: 2.062.500 (3 mo), 4.125.000 (6 mo), 6.187.500 (9 mo), 8.250.000 (12 mo). Enter your bank's actual posted rates for a realistic figure.
What is the formula for the interest on each rung?
Rung interest = Rung amount × Annual rate × (Tenor months ÷ 12) — Vietnamese term deposits pay simple interest at the per-annum rate over the months held. Verifiable example: 150.000.000 × 0.055 × (6 ÷ 12) = 4.125.000 VND for the 6-month rung. The ladder's total is the sum of every rung's interest across one cycle.
How does a ladder compare to a single 12-month deposit?
A single 12-month deposit earns the most (33.000.000 VND/year at the illustrative 5.5%) but locks the full 600.000.000 VND for a year — breaking it early drops you to a near-zero demand rate. The 3/6/9/12-month ladder earns 20.625.000 VND (12.375.000 VND less) but a rung matures every 3 months. That is the yield-versus-liquidity trade-off.
What should I do when a rung matures?
If you do not need the cash, roll it into the longest tenor (12 months in the example). After a few cycles every rung is a 12-month deposit, but they mature in staggered 3-month intervals — so you earn close to the full 12-month rate while still getting cash back regularly. If you do need money, withdraw only the rung that just matured; the others keep running with no lost interest.
How many rungs and what tenor step should I use?
It depends on your liquidity needs. More rungs and a shorter step return cash more often but park more of your money at lower short-tenor rates. A 3-month step with 4 rungs (3/6/9/12) is a popular balanced choice. For tighter liquidity use a 1-month step; to lock in higher rates use a 6-month step (6/12/18/24). Try the configurations in the calculator and compare the effective rate.
Are the rates in these examples real bank rates?
No. The 5.5%/year used throughout this page is an illustrative assumption chosen to make the math easy to follow and verify. Actual VND deposit rates vary by bank, tenor and date, and longer tenors typically pay more than shorter ones. Check current posted rate schedules and enter the real rate for each tenor — the formulas behave identically at any rate.