From April 3, 2023, The deposit interest rates in Vietnam continue to decrease

From April 3, 2023, The deposit interest rates in Vietnam continue to decrease (Image from the Internet)

On March 31, 2023, the State Bank of Vietnam issued Decision 575/QD-NHNN on the maximum interest rate for deposits in Vietnamese Dong of organizations, individuals at credit institutions, branches of foreign banks as prescribed in Circular 07/2014/TT-NHNN.

The State Bank of Vietnam has made adjustments to the deposit interest rates as follows:

From April 03, 2023, the deposit interest rates in Vietnam continue to decrease

Specifically: In Decision 575/QD-NHNN, the maximum interest rate for deposits in Vietnamese Dong of organizations (except credit institutions, branches of foreign banks) and individuals at credit institutions, branches of foreign banks as prescribed in Circular 07/2014/TT- NHNN is adjusted as follows:

- The maximum interest rate applicable to demand deposits and deposits with terms of less than 1 month is 0.5%/year.

(Currently, under Decision 1812/QD-NHNN dated October 24, 2022, the interest rate applied to demand deposits and deposits with terms of less than 1 month is 1.0%/year)

- The maximum interest rate applicable to deposits with terms from 1 month to less than 6 months is 5.5%/year; for People's Credit Funds and Microfinance Institutions, the maximum interest rate for deposits with terms from 1 month to less than 6 months is 6.0%/year.

(Compared to Decision 1812/QD-NHNN, the interest rates currently applied are as follows:

- The maximum interest rate applicable to deposits with terms from 1 month to less than 6 months decreases from 6% to 5.5%/year;

- People's Credit Funds and Microfinance Institutions apply the maximum interest rate for deposits with terms from 1 month to less than 6 months decreasing from 6.5% to 6.0%/year.)

Guidance on applying deposit interest rates in Vietnam before April 03, 2023

For interest rates on deposits in Vietnamese Dong with terms of organizations, individuals at credit institutions, branches of foreign banks arising before April 03, 2023, they are applied until the end of the term;

In case the agreed term expires and the organization, individual does not come to withdraw the deposit, the credit institution, branch of the foreign bank shall apply the interest rate for the deposit according to the provisions in Decision 575/QD-NHNN.

Decision 575/QD-NHNN is effective from April 03, 2023 and replaces Decision 1812/QD-NHNN dated October 24, 2022 of the Governor of the State Bank of Vietnam on the maximum interest rate for deposits in Vietnamese Dong of organizations, individuals at credit institutions, branches of foreign banks according to the provisions in Circular 07/2014/TT-NHNN.

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