New regulations on maximum interest rates for deposits in Vietnam from November 20, 2024

New regulations on maximum interest rates for deposits in Vietnam from November 20, 2024​ (Image from the internet)

New regulations on maximum interest rates for deposits in Vietnam from November 20, 2024

1. Maximum interest rates for VND deposits

The Governor of the State Bank of Vietnam issued Decision 2411/QD-NHNN on November 1, 2024, regarding the maximum interest rates for VND deposits of organizations and individuals at credit institutions and branches of foreign banks according to the provisions of Circular 48/2024/TT-NHNN.

The maximum interest rates for VND deposits of organizations (excluding credit institutions and branches of foreign banks) and individuals at credit institutions and branches of foreign banks according to Circular 48/2024/TT-NHNN are as follows:

- The maximum interest rate applied to demand deposits and term deposits under 1 month is 0.5%/year.

- The maximum interest rate for term deposits from 1 month to under 6 months is 4.75%/year; specifically, the People's Credit Funds and Microfinance Institutions apply a maximum interest rate of 5.25%/year for term deposits from 1 month to under 6 months.

2. Maximum interest rates for USD deposits

The Governor of the State Bank of Vietnam issued Decision 2410/QD-NHNN on November 1, 2024, regarding the maximum interest rates for USD deposits of organizations and individuals at credit institutions and branches of foreign banks in accordance with Circular 46/2024/TT-NHNN.

The maximum interest rates for USD deposits of organizations and individuals at credit institutions and branches of foreign banks according to Circular 46/2024/TT-NHNN are as follows:

- The interest rate applied to deposits of organizations (excluding credit institutions and branches of foreign banks) is 0%/year.

- The interest rate applied to individual deposits is 0%/year.

Forms of deposit reception by banks in Vietnam

According to Clause 27 Article 4 of the Law on Credit Institutions 2024, deposit reception is an activity of receiving funds from organizations and individuals in the form of demand deposits, term deposits, savings deposits, issuance of deposit certificates, and other forms of deposit reception based on the principle of fully refunding the principal and interest as agreed to the deponent (hereinafter referred to as the deponent).

Rights and obligations of persons insured for deposits in Vietnam

The rights and obligations of persons insured for deposits as per Article 11 of the Deposit Insurance Law 2012 are as follows:

- Insured for their deposits at institutions participating in deposit insurance according to the provisions of the Deposit Insurance Law 2012.

- Entitled to full and timely insurance payments according to the provisions of the Deposit Insurance Law 2012.

- Request institutions participating in deposit insurance, and deposit insurance organizations to provide comprehensive and accurate information, policies on deposit insurance.

- File complaints, reports, and lawsuits against agencies, organizations, and individuals related to deposit insurance as per the law.

- Obliged to provide complete and honest information regarding deposits as required by institutions participating in deposit insurance, and deposit insurance organizations when performing insurance payment procedures.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE