INDIVIDUALS BUYING CERTIFICATE OF DEPOSIT, WHAT SHOULD BE NOTED?

Buying certificate of deposit is an attractive investment option for many individuals thanks to its high interest rates and safety. However, to ensure smart financial decisions and effective risk prevention, several important factors need to be considered carefully.

What is certificate of deposit?

Certificate of deposit is a type of financial instruments and foreign bank branches to mobilize capital within the territory of Vietnam. Simply summarized, a certificate of deposit is a type of confirmation on debt obligations of the issuance organization.

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Individuals can only buy certain types of certificate of deposit

Certificate of deposit can be issued by:

– Commercial Bank.

– Cooperative banks.

– Foreign bank branches (FBBs).

– Financial companies and finance lease companies.

Pursuant to current laws, Vietnamese individuals and foreign individuals are allowed to buy certificate of deposit, except for certificate of deposit issued by financial companies and financial leasing companies. Accordingly, certificate of deposit issued by financial companies and financial leasing companies can only transfer ownership between organizations.

Noted on the face value of the certificate of deposit

Certificate of deposit are issued in the form of certificates, book entries or other forms as prescribed by law.

In particular, the face value of the certificate of deposit is 100,000 (one hundred thousand) Vietnam Dong or a multiple of 100,000 (one hundred thousand) Vietnam Dong.

Individuals have the right to use certificate of deposit as collateral or transfer ownership

Certificate of deposit can be used as collateral, and ownership can be transferred upon demand. Transferring ownership of certificate of deposit is carried out in the forms of buying, selling, donating, donating, exchanging, inheriting and other forms in accordance with relevant legal provisions.

Certificate of deposit cannot be redeemed by the issuer before maturity.

The use of certificate of deposit in this case must comply with the instructions of credit institutions and foreign bank branches in accordance with the provisions of law on secured transactions.

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