What is a certificate of deposit? What's different with passbook?

What is a certificate of deposit? What is the difference between Certificate of Deposit and Passbook? This is a question that a lot of people ask recently. So in today's article section we want to help people answer this question. Let's find out together.

What is a certificate of deposit?
What is a certificate of deposit?

See more:

  • What is a bank headquarters?

  • What is a bank account?

What is a certificate of deposit?

Certificate of deposit is a valuable document similar to a passbook for the purpose of raising capital from organizations and individuals. Certificate of Deposit is issued by the Bank to certify the ownership of the customer when depositing an amount at the Bank.

Certificate of deposit issued by the Bank
Certificate of deposit issued by the Bank

In other words, you can understand this is the type of document issued by the bank to the sender. The person who owns this document means that person has deposited money in the bank. So just based on this type of text you will easily know if someone has deposited money in the bank.

A certificate of deposit is actually a certificate of payment to the sender at a certain time. In some countries such as the US and UK, this type of paper is considered a type of bond. So you can use this type of bond to exchange and transfer to buyers.

Therefore, when depositing money in the bank, this type of bond has a high solvency for the owner. The bank also ensures a fixed capital source for a period of time.

Reference: What is a bank guarantee?

Information written on certificate of deposit

According to Clause 3, Article 11 Circular 01/2021/TT-NHNNthe contents recorded on the certificate of deposit include:

  • Issuing bank name;

  • The name of the document (certificate of deposit);

  • Par value, validity period, issue date, maturity date;

  • % interest rate, interest payment method, interest payment time, place of principal and interest payment;

  • Indicate registered or anonymous certificates of deposit;

  • The name of the organization, the number of the establishment license or the business registration certificate, and the address of the organization purchasing the valuable papers (if the buyer is an organization) must be clearly stated;

  • Full name, identity card number or passport number, address of the buyer of the certificate of deposit (if the buyer is an individual);

  • The symbol, the serial number of the certificate of deposit issue;

  • The attached coupon must have details related to valuable papers (serial number, par value), interest rate, amount of interest received, term of interest receipt;

  • Signature of the legal representative of the credit institution, the issuing foreign bank branch or the authorized person in accordance with the law and other signatures prescribed by the credit institution, foreign bank branch. determined;

  • Other content related to or supplementing the certificate of deposit information.

  • The design and printing of the certificate of deposit must be resistant to forgery.

Find out what is maturity?

Classification of certificates of deposit

There are many popular types of sending certificates available today. Each certificate type will have its own functions and tasks. So in addition to understanding the nature of What is a certificate of deposit?? You also need to distinguish each type of certificate of deposit.

Types of certificates of deposit
Certificate of Deposit

Registered Certificate of Deposit

Is a valuable paper issued in the form of a certificate or a book with the owner's name written on it.

Anonymous certificate of deposit

This is the type of document with a price issued by the form of an unnamed certificate. This means that the main type only does not include the owner's name. Anonymous certificates of deposit are always owned exclusively by their holders. This type of certificate is now very popularly applied today.

Recorded Certificate of Deposit

This type of certificate possesses very different characteristics from the type of deposit above. This certificate is non-transferable. Alternatively it can be sold at par and pays interest on the maturity date.

See also: What is CIC?

What are the benefits of a certificate of deposit?

Owning a certificate of deposit brings many great benefits to the sender.

First it is a risk-free investment asset. Because both principal and interest of the deposit are absolutely safe during the deposit period. To put it simply, this type of certificate is like a savings account. Profitable even when sending.

The second benefit is deposit interest. Specifically, certificates of deposit often enjoy high interest rates. It is much higher than when you deposit savings. Therefore, if the depositor wants to maximize his account profits, a certificate of deposit is the best choice.

Benefits of having a sending certificate
Benefits of having a sending certificate

Especially when choosing this deposit method, you can easily manage when you need capital. Specifically, buyers can transfer or sell these valuable papers to borrow capital when needed. The flexibility of this type of document gives the sender many choices when the payment term is not yet due.

You can give, donate, donate, inherit, authorize others according to the provisions of law and issuer and it is very simple to do this.

See also: What is profit margin?

Advantages and limitations when investing in certificates of deposit


  • Thanks to the guarantee provided by the issuing bank, the investment in certificates of deposit does not bring any risk to the investor.

  • Principal and interest when investing in certificates of deposit are always guaranteed within the term.

  • Interest rates on certificates of deposit may be higher than savings rates when compared within the same term.

  • With certificates of deposit, customers can use to raise capital by pledging, selling or transferring…


  • Prepayment is not allowed.

  • Low liquidity.

  • Long-term interest rates are not high.

See also: What is money laundering?

Conditions for purchasing certificates of deposit

In order to purchase a certificate of deposit, the following conditions must normally be met:

  • Vietnamese or foreigners living and working legally in Vietnam;

  • Be 18 years or older;

  • Have full identification documents;

  • There is a transaction at the bank to buy a certificate of deposit.

In addition to the above conditions, banks may set other requirements such as: Not paying before maturity, not performing re-deposit...

Benefits of investing in certificates of deposit

Certificate of deposit is a safe deposit, high interest rate, easy to transfer, will help customers feel secure and meet flexible capital sources for future plans. Outstanding benefits when buying certificates of deposit such as:

  • Earn interest on the amount purchased: Similar to savings deposits, monthly interest will be on the amount deposited by customers. However, with long-term certificates of deposit, customers will enjoy higher interest rates than regular savings deposits.

  • Transferred: If the customer has an urgent need to use the money or does not want to own the certificate of deposit anymore, he can completely transfer his certificate of deposit to another person, the transfer price shall be mutually agreed upon by the two parties. At that time, the bank will act as an intermediary to confirm the transfer of ownership of that money certificate.

  • To be given, given, given, inherited or authorized for another person in accordance with the law and the issuer: Customers can completely give or give back to their children, parents, acquaintances... Not too complicated like inheritance, need an inheritance, a lawyer, a witness... For evidence For long-term deposits, customers only need to go to the bank to confirm, donate, or authorize others. The bank will support simple and quick procedures for giving or giving gifts.

Find out what is debt ratio?

Interest rates on certificates of deposit at some banks today

BankTerm (month)CCTG interest rate (%/year)

In particular, Vietcombank is the bank with the highest interest rate on certificates of deposit today. As noted, Vietcombank's certificate of deposit interest rate fluctuates at 10%/year.

From the table above, we can see some points as follows:

  • 16 – 60 months is the most common term for certificates of deposit.

  • The interest rate for certificates of deposit ranges from 6.68% - 10.2%/year depending on the issuing bank.

See also: What is profit?

Compare certificate of deposit and passbook

FactorsSavingCertificates of deposit

Interest rate

Depending on the term and each bank, the current highest savings interest rate is about 6-7%.Compared with savings, certificates of deposit usually have higher and more stable interest rates, also depending on the long or medium term, the highest interest rate of certificates of deposit is also close to 9%.


Short term from 1, 2, 3, medium term from 6, 9 months and long term from 12, 24, 36 months,...Certificates of deposit with longer maturities; It can be 6 months, 9 months, 12 months, 18 months, 24 months, 36 months or 84 months... depending on the bank and the issuance.


  • Withdrawals can be made easily when due.

  • It is possible to withdraw early but must bear the low interest rate of 0.1-0.2%/year.

In theory, customers who buy certificates of deposit cannot withdraw before maturity, if any, they have to wait after half the term (depending on the bank), so the liquidity will be worse than the savings deposit form.

see more: Agribank savings interest rate

Should I invest in a certificate of deposit or a passbook?

There is no single yardstick to answer this question, depending on the specific case that you consider between saving or buying a certificate of deposit.

Certificates of Deposit will yield higher interest rates if you have large amounts of money idle for long periods of time. On the contrary, if you just want to make a profit in a short time because you have to use the capital later, saving is the more optimal solution.

Some investors choose to split their capital in half to both invest in certificates of deposit and deposit in savings. This is also a good idea to refer to.

See also: What is a fund certificate?

Learn about MB certificates of deposit

What is MB Certificate of Deposit?

MB Certificate of Deposit is issued by Military Bank (MBBank) by the bank for the purpose of certifying the ownership of customers when depositing money at the bank. MB is the first bank to apply an increase in the interest rate on certificates of deposit according to the basic interest rate of the State Bank.

What are the conditions to buy new MB deposit certificate?

Customers buying certificates of deposit can be individuals or organizations established and operating in accordance with the law. Or it can be a customer in the country of establishment in accordance with the provisions of Vietnamese law, meeting the following conditions:

  • Certificates of deposit must have a longer maturity than a savings account.

  • Citizens who are full 18 years of age or older with identity cards and identification papers.

  • There are transactions at MB Bank.

What regulations does MBBank have on certificates of deposit?

Certificate of deposit at MB Bank has the following regulations:

  • Currencies that can be used to participate in MB Bank certificates of deposit include: USD, VND, EUR,…

  • The term of the certificate of deposit is from 2-60 months and must be full month.

  • When joining, customers need to determine the amount of money they have to participate, the minimum amount is: 1,000,000 VND / 100 USD / 100 EUR.

  • Customers participating in certificates of deposit are paid interest on the due date.

  • Each issuance of bank deposit certificates will have regulations on the interest rate, par value of the certificate, currency, issuance time, end time, ....


Thus, it can be seen that certificates of deposit are somewhat more flexible and valuable than passbooks. Therefore, it is only natural that this form of deposit is attracting many people to choose. And for those of you who don't understand What is a certificate of deposit? Hope you can find your answer through this article.

If you have a problem that you do not understand or want to find out more financial information, please contact Banktop for support.

Information edited by: banktop.vn

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