Year-end bonus: Choose an interest rate of 7.4% and maintain liquidity.
Many people are wondering how to use their year-end bonuses. Saving money in a bank account may result in a loss of interest if withdrawn early, while inflation reduces the value of cash. A deposit product that allows for flexible transfers is becoming a promising solution.
The problem of year-end bonuses
Year-end bonuses are a significant source of income, but using them effectively can be challenging. Many people don't plan to use the entire amount immediately, resulting in the money sitting in their checking account with virtually no return.
According to the World Bank's East Asia and Pacific Economic Update report, published on October 7, 2025, Vietnam's projected inflation for the whole of 2025 is 3.8%. This means that holding cash in demand deposits will cause the value of the currency to gradually decrease over time.
On the other hand, traditional savings accounts lack flexibility. If a depositor needs to withdraw money before maturity for unexpected expenses, they will usually lose all the interest earned, receiving only the very low non-term interest rate.
For example, Mr. Khoa (38 years old), a sales manager, received a bonus of 150 million VND. He plans to spend 50 million VND on Tet (Lunar New Year) and keep 100 million VND to buy a car in the middle of next year. He shared: "I haven't decided whether to put it in a short-term savings account or just leave it there. I'm afraid that if I need money unexpectedly, I'll lose the interest. Keeping it in a checking account is convenient but a bit wasteful."
A solution that balances profitability and liquidity.
To address this issue, flexible transferable deposit products are becoming a worthwhile option. The iDepo product from Vietnam International Bank (VIB) is one example, offering interest rates up to 7.4% per year, a 36-month term, and interest payments every 1, 3, or 6 months.
The main difference of this product is the ability to transfer the deposit at any time while still preserving the accumulated interest. Returning to Mr. Khoa's case, if he deposits 100 million VND into iDepo, after 6 months, the accumulated interest could reach nearly 3.5 million VND. When he needs money to buy a car, he can transfer this deposit to someone else through the MyVIB digital banking application. The entire interest of nearly 3.5 million VND remains intact and is not recalculated at the non-term interest rate like regular savings accounts.
Comparing financial performance
To illustrate the difference, consider these options for a sum of 100 million VND over 6 months:
- To keep in your payment account:Interest rates are almost zero.
- Deposit savings for 6 months (interest rate 5%/year):You will receive approximately 2.5 million VND in interest if you complete the full term. If you withdraw early, the interest rate will be reduced to the non-term rate.
- Sent to VIB iDepo:The accumulated profit after 6 months is approximately 3.5 million VND and is preserved upon transfer of ownership.
Digitizing the process on the MyVIB application allows users to open, monitor, and transfer iDepo accounts quickly and transparently without needing to visit a branch. This is a financial tool that helps optimize returns on idle funds in the short and medium term, while still ensuring financial control for depositors.
