Vietnam Term Deposit Calculator (VND)
A term deposit (Vietnamese: sổ tiết kiệm có kỳ hạn) is the workhorse savings product in Vietnam, and the first thing most foreigners open once they have a local bank account. You lock a sum for a fixed tenor — typically 1, 3, 6 or 12 months — and the bank pays the posted rate for that tenor. The interest for a single term is deliberately simple: principal times the annual rate times the fraction of a year the money is locked (term months divided by 12).
Take an illustrative 5.5%/year rate: deposit 100.000.000 VND on a 12-month term and at maturity you receive 5.500.000 VND of interest, for a maturity value of 105.500.000 VND. That covers one term. The decision that actually matters is what you tick on the maturity instruction: choose to roll over principal plus interest and the full 105.500.000 VND becomes the new principal, earning interest on a larger base next term. After 3 years (3 twelve-month terms) that compounding path reaches 117.424.137 VND — 924.137 VND more than if you had withdrawn the interest each term.
The calculator above takes your principal, rate, term length in months and intended horizon in years, then shows three numbers at once: one term's interest, one term's maturity value, and the value after rolling over for N years. One caveat applies throughout: every rate on this page is an illustrative assumption, not a quote. Real VND deposit rates vary by bank, tenor and date — check current posted rates before committing money.
How term deposit interest is computed
One term
Vietnamese banks quote term deposit interest as simple interest within the term:
Interest for one term = Principal × Annual rate × (Term months ÷ 12)
| Symbol | Meaning |
|---|---|
| Principal | The amount you place on deposit |
| Annual rate | The posted rate for that tenor (decimal, 5.5% = 0.055) |
| Term months | 1, 3, 6, 12... months |
The maturity value of a single term is principal plus that interest. For 100.000.000 VND on a 12-month term at an illustrative 5.5%/year: interest = 100.000.000 × 0.055 × (12/12) = 5.500.000 VND; maturity = 105.500.000 VND.
Rolling over principal + interest across N years
When you roll over principal plus interest, the whole maturity value becomes the next term's principal, so the money compounds once per term:
Value after N years = Principal × (1 + r × t/12)^(number of terms)
where r is the annual rate, t is the term length in months, and the number of terms = (N × 12) ÷ t. For 100.000.000 VND, a 12-month tenor over 3 years (3 terms): 100.000.000 × 1.055^3 = 117.424.137 VND, of which 17.424.137 VND is interest.
Rollover vs taking the interest out each term
- Withdraw interest each term (simple, linear): only the original principal ever earns, and you spend the coupon. After 3 years the total (principal + interest taken) is 116.500.000 VND.
- Roll over principal + interest (compounds per term): interest joins the principal and the next term earns on a bigger base. After 3 years: 117.424.137 VND — 924.137 VND more.
Longer tenor or shorter tenor?
Shorter terms compound more often but usually carry a lower posted rate than longer terms, so the more-frequent compounding can be cancelled out. Holding the same rate, a shorter tenor compounds slightly more in this model: at 5.5%/year, a 6-month term reaches 117.676.836 VND after 3 years versus 117.424.137 VND for the 12-month term — a gap of 252.699 VND. In practice, compare the posted rate for each tenor and pick the term that matches when you will need the cash.
What the model leaves out, and a tax note
The calculator assumes a constant rate across terms and no early withdrawal (breaking a term deposit early usually drops you to a near-zero demand rate). On tax: as general information, interest earned by individuals on personal savings deposits is currently not subject to personal income tax in Vietnam — treat this as informational and verify the current rules yourself, since policy can change. Treat the output as a scenario, not a promise.
Worked example: 100.000.000 VND, 12-month term, illustrative 5.5%/year
Illustrative assumptions: a constant 5.5%/year rate, rollover of principal plus interest at every maturity, no early withdrawal.
A single term (12 months)
| Metric | Value |
|---|---|
| Principal deposited | 100.000.000 |
| Interest for one term | 5.500.000 |
| Maturity value | 105.500.000 |
Rolling over principal + interest for 3 years vs taking interest out
| Milestone | Roll over principal + interest | Take interest out (simple) | Rollover advantage |
|---|---|---|---|
| After 1 year | 105.500.000 | 105.500.000 | 0 |
| After 2 years | 111.302.500 | 111.000.000 | 302.500 |
| After 3 years | 117.424.137 | 116.500.000 | 924.137 |
After 3 years, 100.000.000 VND rolled over as principal plus interest becomes 117.424.137 VND, of which 17.424.137 VND is interest. Withdraw the interest each term and the total is only 116.500.000 VND — the 924.137 VND difference is the "interest on interest" you forgo. The gap looks modest at three years but widens quickly over longer horizons: enter a larger number of years in the calculator to see it. If you want to split the money across several deposits maturing at staggered dates — keeping some liquidity while still earning term rates — see FiMo's deposit ladder calculator.
Frequently asked questions
How is interest on a Vietnamese term deposit calculated?
Interest for one term = Principal × Annual rate × (Term months ÷ 12). At an illustrative 5.5%/year: 100.000.000 VND on a 12-month term earns 100.000.000 × 0.055 × (12/12) = 5.500.000 VND, maturing at 105.500.000 VND. Real rates vary by bank and tenor — enter the current posted rate into the calculator for an accurate figure.
What does "roll over principal plus interest" mean and is it worth it?
At maturity a bank typically offers three choices: cash out, roll over principal only (interest paid to your account), or roll over principal plus interest. Only the last compounds — each new term earns on a larger base. For 100.000.000 VND at 5.5%/year on a 12-month term over 3 years, rolling over principal plus interest yields 117.424.137 VND, which is 924.137 VND more than taking the interest out each term.
Is term deposit interest taxed in Vietnam?
As general information, interest individuals earn on personal savings deposits is currently not subject to personal income tax in Vietnam — unlike some other forms of investment income. Treat this as informational only: rules can change and circumstances differ, so verify the current regulations with your bank or a tax adviser before relying on it. This calculator does not deduct any tax from the result.
How much will 100 million VND earn on a 12-month deposit?
Under an illustrative 5.5%/year assumption (not a quoted rate): 100.000.000 VND on a 12-month term earns 5.500.000 VND of interest, maturing at 105.500.000 VND. Roll over principal plus interest for 3 years and it grows to 117.424.137 VND. Re-run the tool with whatever rate your bank actually posts today.
Should I choose a shorter or longer deposit tenor?
There is no single answer. Shorter tenors compound more often but usually pay a lower posted rate than longer tenors, so the two effects can offset. Holding the same rate, a shorter tenor edges ahead here: at 5.5%/year over 3 years, a 6-month term reaches 117.676.836 VND versus 117.424.137 VND for 12 months — 252.699 VND more. In reality, compare the posted rate for each tenor and pick the term that matches when you will need the money.
What happens if I withdraw a term deposit early?
If you break a term deposit before maturity, most Vietnamese banks pay only the very low demand (non-term) rate — often close to 0% — on the entire period, instead of the agreed term rate. You effectively lose the expected interest. Match the tenor to when you will need the cash, or split across several deposits. This calculator models holding to maturity and does not simulate early-withdrawal penalties.
What is the formula for the value after several years of rollover?
Value after N years = Principal × (1 + r × t/12)^(number of terms), where r is the annual rate, t the term length in months, and number of terms = (N × 12) ÷ t. Verifiable example: 100.000.000 VND, r = 0.055, t = 12 months, N = 3 years → 3 terms, value = 100.000.000 × 1.055^3 = 117.424.137 VND (interest 17.424.137 VND).