Can You Withdraw Savings Before Maturity? Answers to Your Questions

Loans

08/05/2025

Answering the question: Can you withdraw savings before maturity? Learn about the regulations, how interest is calculated for early withdrawal, and important tips to optimize your finances!

Saving money is a secure and popular investment method for effective financial accumulation. However, in certain emergencies, you might need to withdraw your savings before their maturity date. So, is this permissible, and what should you be aware of? In this article, VPBank will provide detailed answers and useful related information for your reference.

1. Can You Withdraw Savings Before Maturity?

Whether you can withdraw savings before their maturity date depends on the specific savings product offered by the bank. In some cases, you can withdraw early, while in others, it's not possible. Here are specific scenarios to clarify the question, "Can I withdraw my savings before maturity?"

1.1. Cases Where Early Withdrawal is Permitted

When you deposit money into a time-deposit savings account at a bank, customers can typically withdraw funds early, either partially or fully, depending on the terms of the specific savings product. However, the interest rate applied to the portion withdrawn early will vary according to the specific savings solution.

Cases where early withdrawal of savings is allowed.

1.2. Cases Where Early Withdrawal is Not Permitted

While most customers can withdraw savings before maturity, there are a few situations where this is not possible:

Savings Passbook is Collateral for a Loan: If you are using your savings passbook as collateral for a loan at the bank, the funds in the savings account will be frozen. You can only withdraw the money early once you have fully repaid that loan.
Frozen Account: If your bank account is frozen for any reason, you will not be able to withdraw money from your savings account. You will need to wait until the account freeze period ends to perform withdrawal transactions.

2. Do You Lose Interest When Withdrawing Savings Before Maturity?

According to Article 5 of Circular 04/2022/TT-NHNN, customers who withdraw savings before maturity will still receive interest. However, the applicable interest rate will vary depending on the amount you wish to withdraw. Specifically:

2.1. In Case of Full Early Withdrawal

The interest will be calculated at the lowest demand deposit interest rate that the bank is applying at that time.

The interest earned when withdrawing the entire deposit

2.2. In Case of Partial Early Withdrawal

For the portion of the deposit withdrawn early, the interest rate will be calculated in the same way as a full early withdrawal. For the remaining principal, the interest rate will be calculated according to the agreed-upon time-deposit interest rate.

Example: You have VND 5,000,000 deposited for a 30-day term at an annual interest rate of 4%, and the demand deposit interest rate is 0.5% per annum. If you withdraw the money early after 15 days, there will be two scenarios for interest calculation:

Scenario 1: You withdraw the entire VND 5,000,000. The interest will be calculated at the demand deposit interest rate: Interest = VND 5,000,000 x 0.5% / 365 x 15 = VND 1,027.
Scenario 2: You withdraw VND 2,000,000 and keep VND 3,000,000 until maturity. The interest will be calculated as follows: Interest on the withdrawn amount: VND 2,000,000 x 0.5% / 365 x 15 = VND 410. Interest on the remaining amount: VND 3,000,000 x 4% / 365 x 30 = VND 9,863. Total interest you receive after 30 days is: VND 410 + VND 9,863 = VND 10,273.

Thus, you will receive a total interest of VND 10,273 if you withdraw a portion and keep the remainder until maturity.

3. How to Withdraw Savings Before Maturity

If you need to withdraw your savings before maturity, you can do so through one of the following methods:

3.1. Withdrawing Savings at a Transaction Counter

When withdrawing money at a bank counter, you need to bring essential documents such as: your savings passbook, a withdrawal slip with a signature matching the one on file, a copy of your CMND/CCCD, and proof of representation (if you are an authorized representative). After submitting all necessary documents, the bank staff will guide you through completing the procedures.

Note: Procedures and document requirements may vary depending on the specific bank

Go to the transaction counter to withdraw your deposit.

3.2. Withdrawing Money at an ATM via Bank Card

To withdraw savings at an ATM, you only need your ATM card and PIN. The steps for early savings withdrawal in this case are:

Go to an ATM and insert your card.
Select your language, enter your PIN, and choose "Confirm."
Select "Withdraw Savings" and the account from which to withdraw.
After the machine confirms the transaction, take your cash and card.

Depending on the bank, you may be able to withdraw a portion or the entire savings amount via ATM, with transaction fees ranging from VND 2,000 to VND 10,000. Remember to shield the keypad when entering your PIN for security.

3.3. Withdrawing Money via Mobile Banking

With this method, you only need to use your bank's mobile application on your phone, eliminating the need for physical documents. The withdrawal steps are simple, including entering your password, OTP code, and other security measures to complete the transaction. Once authenticated, the money will be transferred from your savings account to your main bank account.

4. Are There Penalties for Early Savings Withdrawal?

Whether penalties apply for early withdrawal of savings depends on the agreement between the depositor and the bank, specifically:

When there is a prior agreement: If both parties have agreed on a penalty for early withdrawal, the depositor will incur the penalty as stipulated in the agreement. However, currently, most banks do not apply such penalties.
When there is no prior agreement: According to Circular 04/2022/TT-NHNN of the State Bank of Vietnam, if there is no agreement regarding penalties for early withdrawal, the depositor will not be subject to any penalty.

Regulations on Penalties for Early Withdrawal

5. How to Retain Interest When Withdrawing Early?

If you urgently need funds but want to avoid losing the initial interest rate on your savings, a viable solution is to use a mortgage loan against your savings passbook. In this scenario, your savings passbook serves as collateral for a loan with a lower interest rate. This method helps you address urgent financial needs while preserving the interest earned on your savings.

Guide on how to retain interest when withdrawing savings before maturity.

However, if you decide to withdraw your savings before maturity, regardless of the savings product, the withdrawn amount will only be calculated at the demand deposit interest rate. This will undoubtedly reduce the interest you receive. Therefore, before making a decision, you should carefully consider the necessity of the withdrawal and the associated financial impacts.

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We hope that this article from VPBank has provided you with a clearer understanding of early savings withdrawals and important considerations. Understanding the regulations and procedures shared by VPBank will help you make decisions appropriate for your financial situation. For more detailed information on current savings products, please visit our website at www.vpbank.com.vn or call our hotline at 1900.54.54.15.