4. Forms and features of certificates of deposit
a. Forms
- Certificate of registered deposit: Is the certificate which is wrote the name of the owner.
- Certificate of anonymous deposit: Do not write owner's name, it is owned by holder of valuable papers.
- certificate of book entry deposit : the bank opens to the owner  a certificate account and provides to the holder the content of the certificate account.
b. Features
- Currency: VND, foreign currency.
- Minimum and Maximum face value of CDs: depend on each Bank
For example: on April 9, 2018, Sacombank issued certificates of deposit in VND for individual customers and organizations. This is a one-year term deposit certificate with minimum face value of 1 million VND, term of seven years (84 months) at the interest rate of 8.5% per year (in the first year).
Meanwhile, VIB has just completed the issuance of certificates of deposits in VND, interest rates up to 8.7% per year for individual customers and micro enterprises with minimum  face value is 10 millions VND with two maturity options of 61 months and 84 months

5. Advantages and disadvantages of CDs:
a. Advantages
- Certificate of Deposit is a risk-free investment because it is usually secured by governments.
For instance, in the US, the bank's deposit certificate is guaranteed by the Federal Deposit Insurance Corporation, and the certificate of deposit issued by a credit institution is guaranteed by the National Credit Union Administration. Both principal and interest are guaranteed for the entire duration of the investment. This is very attractive for investors looking for safety.
- CDs usually has higher interest rate than ordinary savings account. Individuals who want to maximize their savings can look to deposit certificates, which is better than depositing in a savings account or participating in the money market.
Example: The interest rate of a 3-month maturity deposit certificate will usually be higher than that of a 3-month note in the currency market. You can also use the amount when the certificate of deposit maturity to buy a certificate of deposit for another 3 months instead of withdrawing cash.
- CDs is becoming one of the “preferred " product to raise capital of banks. Because the bank attracts a large amount of capital to operate and knows ahead of time of payment to customers, the bank will be more comfortable using the funds.
b. Disadvantages
- The biggest disadvantage of the CD is its liquidity is not as high as the savings account.
- CDs have penalties if you want to withdraw your money before maturity. Not only will you lose the interest you can get, but also you will lose 10% of your original assets. This is called withdrawal penalties for investors.
- In the long term, CDs pay interest rates lower than corporate bonds. If you want to deposit your money within 5 years, it is best to look for a top rated bond. Although they will not be guaranteed by the government, their interest rates are still much higher than the certificates of deposit.