What is the current bank interest rate? What will the interest rate be if the entire bank deposit is withdrawn before maturity?
What is the current bank interest rate?
The State Bank has issued Decision 1812/QD-NHNN of 2022 on the maximum interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches according to the provisions of Circular 07/2014/TT-NHNN.
The maximum deposit interest rates in Vietnamese Dong of organizations (excluding credit institutions, foreign bank branches) and individuals at credit institutions, foreign bank branches according to the provisions of Circular 07/2014/TT-NHNN are as follows:
- The maximum interest rate applicable to demand deposits and term deposits of less than 1 month is 1.0% per year.- The maximum interest rate applicable to term deposits from 1 month to less than 6 months is 6.0% per year; specifically, People's Credit Funds and Microfinance Institutions apply a maximum interest rate for term deposits from 1 month to less than 6 months of 6.5% per year.
What is the current bank interest rate? What will be the interest rate if the entire deposit is withdrawn prematurely?
Can individuals withdraw the entire bank deposit prematurely?
According to Article 4 of Circular 04/2022/TT-NHNN, the regulations are as follows:
Premature Withdrawal of Deposits
1. Premature withdrawal of deposits refers to cases where customers withdraw part or all of the deposit before the due date, payment date, or maturity date of the deposit.
2. Credit institutions and customers agree on the premature withdrawal of deposits in accordance with the regulations of the State Bank of Vietnam for each specific type of deposit. The interest rate for premature withdrawal of deposits is agreed upon in accordance with the provisions of Article 5 of this Circular. In the absence of an agreement on premature withdrawal of deposits, credit institutions shall apply the interest rate for premature withdrawal of deposits in accordance with the provisions of this Circular.
Thus, customers can withdraw part or all of the deposit in the bank before the due date, payment date, or maturity date of the deposit.
What will be the banking interest rate if the entire deposit is withdrawn prematurely?
According to Article 5 of Circular 04/2022/TT-NHNN, the banking interest rate for premature withdrawal of the entire deposit is regulated as follows:
Interest Rates for Premature Withdrawal of Deposits
1. In the case of customers withdrawing the entire deposit prematurely: credit institutions shall apply a maximum interest rate equal to the lowest demand deposit interest rate of that credit institution according to customer categories and/or the type of currency deposited at the time the customer withdraws the deposit prematurely.
2. In the case of customers withdrawing part of the deposit prematurely:
a) For the part of the deposit withdrawn prematurely, credit institutions shall apply a maximum interest rate equal to the lowest demand deposit interest rate of that credit institution according to customer categories and/or the type of currency deposited at the time the customer withdraws the deposit prematurely;
b) For the remaining part of the deposit, credit institutions shall apply the current interest rate for the deposit from which the customer withdraws part prematurely.
When the entire deposit is withdrawn prematurely from the bank, the maximum interest rate that the customer receives will be equal to the lowest demand deposit interest rate of the credit institution according to customer categories, based on the deposited currency at the time the customer withdraws prematurely.
What is the interest rate for prematurely withdrawing part of the bank deposit?
According to Article 5 of Circular 04/2022/TT-NHNN, the interest rate for prematurely withdrawing part of the bank deposit is regulated as follows:
Interest Rates for Premature Withdrawal of Deposits
1. In the case of customers withdrawing the entire deposit prematurely: credit institutions shall apply a maximum interest rate equal to the lowest demand deposit interest rate of that credit institution according to customer categories and/or the type of currency deposited at the time the customer withdraws the deposit prematurely.
2. In the case of customers withdrawing part of the deposit prematurely:
a) For the part of the deposit withdrawn prematurely, credit institutions shall apply a maximum interest rate equal to the lowest demand deposit interest rate of that credit institution according to customer categories and/or the type of currency deposited at the time the customer withdraws the deposit prematurely;
b) For the remaining part of the deposit, credit institutions shall apply the current interest rate for the deposit from which the customer withdraws part prematurely.
Thus, in the case of prematurely withdrawing part of the deposit from the bank, the portion of the deposit withdrawn prematurely will be subject to a maximum interest rate equal to the lowest demand deposit interest rate of that bank.
The remaining portion of the deposit (the part not withdrawn prematurely) will continue to be applied with the prevailing interest rate of the bank for the deposit from which the customer withdraws part prematurely.
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