Savings has long been considered a safe investment channel and chosen by many people. This investment channel is suitable for those who like to “wear well” because it is safe and low-risk. So if you have idle money and don’t know How much interest is 1 billion in bank deposits per month? then today’s post of tintucbatdongsanviet will help you answer questions about this issue. Let’s follow along!

## How to calculate interest on a 1 billion savings deposit at the bank?

In fact, banks are currently applying two forms of interest payment when customers deposit savings. That is receiving interest at the end of the period or receiving interest monthly/quarterly. To know how much interest is in 1 billion in bank deposits, you need to know the formula for calculating interest when depositing 1 billion applied to each form of receiving interest. Specifically:

### Get profit at the end of the period

It is a form of customers saving money at a bank for a certain period of time. At the end of the term, the bank will calculate the total interest for customers according to the formula:

Total interest = Deposit amount x Interest rate x Days of deposit/365

or:

Total amount of interest = Deposit amount x Interest rate/12 x Number of months of deposit

For example: You save 1 billion to the bank with a term of 1 month, the applicable interest rate is 6%. At this time, Total profit received = 1 billion x 6% x 1 month/12 months = 5 million dong

### Get monthly/quarterly/yearly interest

This is a form of customers depositing savings at banks with the deposit term according to their needs. Monthly/quarterly/yearly, the bank will pay the prescribed interest rate based on the customer’s deposit amount.

The formula is calculated as follows:

Monthly/quarterly/yearly interest rate = principal amount x monthly/quarterly/yearly interest rate

For example: You save 1 billion to a bank with a term of 6 months, the applicable interest rate is 6%. At this time, the total interest received each month = 1 billion x 6% = 6 million VND

## Table of interest rates of banks today

How much interest is 1 billion in bank deposits for 1 month, 3 months, 6 months, 12 months, 18 months, 24 months? You should consult the interest rates in many different banks. Below is just the average interest rate for reference only.

 Bank 01 month 03 months 06 months 12 months 18 months 24 months Agribank 3.1 3.4 4 5.6 5.6 5.6 Vietcombank 3.1 3.4 4 5.5 – 5.3 BIDV 3.1 3.4 4 5.6 5.6 5.6 Vietinbank 3.1 3.4 4 5.6 5.6 5.6 MB 3 3.4 4.54 5.12 5.7 5.35 TPBank 3.5 3.55 5.4 – 6.3 – VIB 3.7 3.7 5.4 – 6.2 6.3 VPBank 3.3 – 4.7 6.2 – 6.3

After following the bank interest rate table, you can easily see the average interest rates applied by banks:

• With 1 month term is about 3.7%
• With 3-month term is about 3.79%
• With 6-month tenor is about 4.85%
• With 12 months tenor is about 5.46%
• With 18 months maturity is about 5.6%
• With a 24 month term it is about 5.3%

## What is the difference in interest between banks when saving 1 billion?

Market survey shows that, with 1-month savings term, banks are listing with interest rates ranging from 2.5% – 4%/year. So with 1 billion VND, customers can earn from 2.05 to 3.28 million VND/month.

Similar to the 6-month term, the interest rates listed by banks range from 4% to 6.45%/year. In which, the interest rate of 4% is applied at banks such as BIDV, Agribank, Vietcombank and Vietinbank.

Savings interest rate 9-month term is listed by banks with rates ranging from 4% – 6.35%/year (at the counter) and up to 6.6%/year when saving online. In which, national banks such as BIDV, Vietinbank, Vietcombank, Agribank apply an interest rate of only 4%/year for this term.

With a term of 12 months, the interest rate ranges from 4.85%/year at MB to 6.8%/year at SCB. At this term, many banks apply interest rates above 6%/year such as OceanBank, Bac A, Bao Viet, Kien Long, and SeABank. So with 1 billion dong, customers will receive a profit of 48.5 – 69 million dong.

In short, with an amount of VND 1 billion in savings, customers will earn different amounts of interest depending on the depositing bank. With banks that apply higher deposit rates, the higher the amount of interest earned. In which, the maximum amount of interest earned in the 36-month term is 213 million dong. The minimum amount that can be collected is VND 159 million at Vietcombank.

## How much interest is 1 billion in bank deposits per month? – How should I save money to make the most profit?

According to experts, bank savings are also one of the forms of financial investment. Accordingly, this form will help you ensure safety as well as receive a stable interest rate on the amount you deposit. So in addition to finding out how much interest is 1 billion in a bank deposit per month, you need to know how with 1 billion in bank deposits to make the most profit:

• Choose a bank with a high interest rate: In the same deposit term, the applicable interest rate at each bank will be different. Therefore, you should choose to deposit at a bank with a high interest rate to get a high interest rate. However, at a short term like 1 month, 3 months, the difference in interest rates is not too much.
• Long term deposit: Long term interest rates are always better. So if you do not have a plan to use this idle money. You may consider choosing a longer deposit term to receive a higher interest rate.
• Receive interest at the end of the period: Between the form of bank savings with monthly interest and receiving interest at the end of the period, the interest rate applied at the end of the period will be higher. You can also consider this form of receiving interest to increase your benefits.
• Divide multiple savings books: With this method, your money will be sent into many books with different limits. Thereby helping you to ensure a source of profit. As well as always available capital that can be withdrawn when needed without affecting the total capital.

## Disadvantages of bank savings

### Inflationary

Inflation is one of the factors that strongly affect savings interest rates. At any given time, the savings interest rate can be positive real. That is, the interest rate on savings is higher than inflation. Or negative real means that the interest rate on savings is lower than inflation.

Overall, according to historical data for markets in the region, over a mean period of 10 years, bank deposits are negative real. That is, not higher than average inflation.

### Interest rates are low and volatile over time

This is the biggest disadvantage of customers when choosing a bank savings account. Savings will not be profitable as quickly and as much as other forms of financial investment. However, now banks have adjusted higher interest rates to attract customers.

However, the bank’s savings interest rate will not be much higher than inflation. During periods of high inflation, bank interest rates are much lower than inflation rates. Bank interest rates can fluctuate wildly over time. Or change according to macroeconomic factors.

For example: Bank interest rates in Vietnam market dropped rapidly to 14%/year in the middle of 2011. This interest rate dropped to only 5-7%/year in the first half of 2014.

## 1 billion investment? – Some other investment channels worth paying attention to

 Investment channel Advantage Defect Saving Safe, stable profit according to the committed interest rateLow risk: savings deposits are certified by a bank, have a written basis as a passbook, and are secured by deposit insurance. High liquidity: can be withdrawn easily when needed Savings interest rates are usually not highTerm savings are less liquid than demand savings. Customers should wait until the end of the period when the company closes the book. If you pay off before the period, you will receive the interest rate without term. This interest rate will be much lower than the original interest rate. Stock investment Don’t need a lot of capitalFast profit if invest at the right time Must have knowledge and expertise in securitiesCareful calculation is required to make the right decision to place ordersHigh risk of loss, even loss Real estate investment Ensure safety of capitalThe possibility of high price appreciation if investing in the right place and at the right timeReal estate can be used as collateral for bank loans Need to spend a lot of time researching the real estate marketLegal and political knowledge is requiredLow liquidity because it is difficult to trade real estate in a short time to recover capital when neededReal estate can take a long time to generate revenue and profit if you invest at the wrong time

## Epilogue

Thus, bank savings is a safe, low-risk investment channel that you can choose if you want to “make sure to wear durable”. How much interest 1 billion is in a bank deposit a month depends on many different factors such as interest rate, deposit bank, term, etc. So in addition to savings, investors can choose investment channels. other more effective. Good luck with your investment!