Savings Goal Calculator for Vietnam (VND term deposits)
If you live in Vietnam and earn in dong, the humble VND term deposit (gửi tiết kiệm có kỳ hạn) is probably the most useful boring product available to you — and one many foreigners overlook because they keep savings in USD out of habit.
Here is the key fact: under the State Bank of Vietnam's long-standing anti-dollarization policy, USD deposits held by individuals at Vietnamese banks have earned 0% interest for years. The policy has been in place for roughly a decade and shows no sign of changing. VND term deposits, by contrast, earn a meaningfully positive rate that varies by bank and term. So a foreigner who parks savings in USD inside Vietnam is choosing to earn nothing, while the same money converted to VND compounds toward a goal.
Foreigners can generally open VND savings accounts and term deposits in Vietnam. Requirements vary by bank, but as general guidance you will need a valid passport plus proof of lawful residence — typically a visa, temporary residence card, or work permit — and some banks limit the deposit term so it does not extend beyond your permitted stay. Bring your documents to a branch (or check the bank's app; several let existing customers open term deposits online) and ask specifically about terms available to foreign residents.
The calculator above works the problem backwards from a goal: set a target amount and deadline, choose an assumed interest rate, and adjust the monthly contribution until the projected goal date matches your deadline. You can track several goals side by side — an emergency fund, a visa-run buffer, a motorbike, a wedding, or a repatriation fund.
How the calculator turns a goal into a monthly deposit
The future-value formula
A fixed monthly contribution PMT, compounding monthly at annual rate i (so r = i/12) for n months, grows to:
FV = PMT × [(1 + r)ⁿ − 1] / r
Inverting it gives the contribution required to reach a target:
PMT = FV × r / [(1 + r)ⁿ − 1]
Real term deposits credit interest at maturity and then roll over rather than compounding monthly, but at typical deposit rates the difference is small; choosing a conservative assumed rate more than covers it.
What rate should you assume?
This page deliberately quotes no current market rate as fact — Vietnamese deposit rates move with monetary policy and differ across banks, terms, and channels. Use a clearly conservative, illustrative assumption (this page's worked example uses 4.5%/year) and update your plan when you actually open the deposit and lock a real rate. If the real rate turns out higher, you simply reach the goal early.
Currency choice: where will you spend the money?
Match the currency of the deposit to the currency of the goal:
- Goal in Vietnam (motorbike, wedding, apartment deposit, tuition): save in VND. You earn real interest and carry no conversion risk at spending time.
- Goal abroad (moving home, a purchase priced in USD/EUR/AUD): a VND deposit earns more interest, but you carry exchange-rate risk between now and the goal date. The VND has historically tended to depreciate gradually against the USD, so for foreign-currency goals, weigh the VND interest advantage against possible depreciation — or split the savings between currencies.
- Holding USD inside a Vietnamese bank earns 0% under the SBV policy described above — it removes exchange-rate risk for USD goals but contributes nothing in interest.
Practical mechanics of Vietnamese term deposits
- Terms commonly range from 1 to 36 months; 6 and 12 months are the workhorses. Longer terms usually list higher rates at the same bank.
- Rollover (tái tục): at maturity you can auto-renew principal only, or principal plus interest. Choose principal-plus-interest so the interest itself compounds.
- Early withdrawal is allowed but typically converts the broken deposit's interest to the near-zero demand rate — so split a large sum into several smaller certificates and break only what you need.
- Deposit insurance exists in Vietnam and covers VND deposits per depositor per bank up to a statutory limit; ask the bank for the current figure when you open the account.
Worked example: 300.000.000 VND in 3 years
Scenario: you want a 300.000.000 VND fund in 3 years — say a wedding, a car, or a leaving-Vietnam buffer. Illustrative assumption: 4.5%/year, compounding monthly, starting from zero. This is an assumption for the maths, not a quoted bank rate.
Applying PMT = FV × r / [(1 + r)ⁿ − 1] with FV = 300.000.000, r = 4.5%/12, n = 36 months:
Required deposit ≈ 7.799.077 VND/month.
| End of year | Total deposited (VND) | Accumulated interest (VND) | Balance (VND) |
|---|---|---|---|
| 1 | 93.588.928 | 1.954.605 | 95.543.533 |
| 2 | 187.177.856 | 8.298.463 | 195.476.319 |
| 3 | 280.766.784 | 19.233.216 | 300.000.000 |
Over 36 months you deposit 280.766.784 VND of your own money; interest contributes the remaining 19.233.216 VND.
The cost of saving in USD at 0%
Put the same 7.799.077 VND/month equivalent into a USD deposit earning 0% under the SBV policy, and after 36 months you hold only your contributions: 280.766.784 VND-equivalent — 19.233.216 VND short of the goal (before any exchange-rate movement, which could cut either way). For a goal you will spend in Vietnam, the VND deposit wins on both interest and currency match. Plug your own target, deadline, and the rate your bank actually offers into the calculator above.
Frequently asked questions
Can foreigners open a savings account in Vietnam?
Generally yes. Most Vietnamese banks open VND payment accounts and term deposits for foreigners who can show a valid passport plus proof of lawful residence — a visa, temporary residence card, or work permit. Requirements and maximum deposit terms vary by bank (some cap the term at your remaining permitted stay), so ask the branch what is available to foreign residents. Several banks also let existing customers open and break term deposits entirely in the app.
Why do USD deposits pay 0% interest in Vietnam?
It is a deliberate, long-standing policy of the State Bank of Vietnam to discourage dollarization of the economy: the ceiling on interest payable on individuals' USD deposits has been held at 0% for years. Banks will happily hold your USD, but it earns nothing. If you are saving toward a goal you will spend in Vietnam, converting to VND and using a term deposit means your money actually compounds.
How much interest do VND term deposits pay?
Rates change with monetary policy and vary by bank, term length, deposit size, and channel (online openings often list slightly higher rates than the branch counter), so no figure quoted on a static page stays accurate. Check the listed rates of two or three banks for the 6- and 12-month terms, then enter the real rate you are offered into the calculator — this page's worked example uses a clearly-labelled illustrative 4.5%/year, not a market quote.
Should I save in VND or USD while living in Vietnam?
Match the currency to the goal. Spending the money in Vietnam (rent deposit, motorbike, wedding, tuition)? Save in VND — you earn term-deposit interest and avoid conversion risk. Spending it abroad? VND still earns more interest than a 0% USD deposit, but you carry exchange-rate risk until the goal date; the dong has historically tended to depreciate gradually against the dollar, so many people split between currencies for foreign goals. Avoid the worst of both worlds: USD sitting in a Vietnamese bank at 0% for a VND-denominated goal.
Is my money safe in a Vietnamese bank? Is there deposit insurance?
Vietnam has a statutory deposit-insurance scheme (Deposit Insurance of Vietnam) covering VND deposits of individuals per depositor per bank up to a legal limit — ask the bank for the current covered amount when you open the account. Note that foreign-currency deposits are not covered by the scheme, which is one more argument for keeping goal savings in VND. Spreading large sums across more than one bank extends your covered total.
What happens when my term deposit matures?
You choose the maturity instruction when opening: withdraw everything, auto-renew principal only (interest drops into your payment account), or auto-renew principal plus interest at the bank's then-current listed rate. For multi-year goals, pick principal-plus-interest so the interest compounds — that compounding is exactly what the FV = PMT × [(1 + r)ⁿ − 1] / r projection in this calculator assumes.
How much must I save monthly to reach 300 million VND in 3 years?
At an illustrative 4.5%/year compounding monthly, the inverse future-value formula gives ≈ 7.799.077 VND/month for 36 months: you contribute 280.766.784 VND and interest adds 19.233.216 VND. At 0% (cash or a USD deposit) the same monthly amount leaves you 19.233.216 VND short. Enter your own target, deadline, and offered rate in the calculator for exact numbers.