Draft Circular guiding savings deposit transactions issued by the Governor of the State Bank of Vietnam is currently in the period of collecting opinions and approval.
Article table of contents
Saving deposit is an individual's money deposited at a credit institution for a specified term based on the principle of full repayment of principal and interest. Saving deposit transactions include the transactions of deposit/acceptance, payment/withdrawal of the saving deposit, and other related transactions.
Individuals performing saving deposit transactions must be:
- Individuals aged 18 years and older with full civil act capacity according to the regulations of Vietnamese law;- Individuals aged from 15 to under 18 years, who are not restricted in civil act capacity, are able to independently establish and execute civil transactions according to the Civil Code;- Individuals under 15 years, incapacitated individuals, individuals with cognitive difficulties, individuals with limited civil act capacity according to Vietnamese law, who conduct saving deposit transactions through their legal representatives.
The subjects depositing savings in Vietnamese dong and in foreign currency are residents who are Vietnamese citizens. Performing savings deposit transactions in foreign currency must comply with the regulations of Forex management laws.
Subjects accepting savings deposits include:
- Credit institutions, branches of foreign banks (excluding non-banking credit institutions) established and operating in Vietnam according to the Law on Credit Institutions (hereinafter referred to as credit institutions);- Policy banks performing the acceptance of saving deposits according to the regulations of the Government of Vietnam on the organization and operation of policy banks and as specified in this Circular;- Microfinance institutions performing the acceptance of saving deposits according to the regulations on the organization and operation of microfinance institutions and as specified in this Circular.
The acceptance of foreign currency savings deposits is only applicable to credit institutions authorized to engage in Forex trading and service provision.
Credit institutions publicly post the interest rates of saving deposits, premature withdrawal interest rates in compliance with the regulations of the State Bank on interest rates from time to time. The method of paying interest is conducted as agreed between the credit institution and the customer on the Savings Card.
Customers are allowed to withdraw savings deposits prematurely unless otherwise agreed between the credit institution and the customer on the Savings Card and must notify the credit institution in advance of the premature withdrawal according to the regulations. Moreover, when the saving deposit matures, if the customer neither settles the account nor has any other request, the credit institution will include the interest in the principal and extend the term for another period as agreed upon on the Savings Card.
The procedure for depositing and paying saving deposits is as follows:
For customers conducting saving deposit transactions for the first time, the customer must directly perform the deposit transaction at the transaction location of the credit institution and present the following documents:
- Documents verifying the customer’s personal information;- In case the individual deposits money through a legal representative, the legal representative’s personal information documents and documents proving their legal status must be presented;- In case of a joint saving deposit, documents verifying the personal information of all individuals named on the Savings Card and the agreement specifying the rights and obligations of the individuals jointly named must be presented.
The credit institution guides the customer in filling out the customer identification information in accordance with the anti-money laundering laws; register a sample signature; register fingerprints (if required by the credit institution).
After completing the said regulations, the credit institution performs the procedures for accepting the saving deposit and issuing the Savings Card to the customer.
Procedure for accepting saving deposits in subsequent deposits:
- The customer must directly perform the deposit transaction at the transaction location of the credit institution and present documents as in the first transaction;- The credit institution guides the customer in updating the customer identification information in accordance with anti-money laundering laws;- After completing the steps above, the credit institution performs the procedures for accepting saving deposits and issuing the Savings Card to the depositor.
If the customer wishes to deposit savings through electronic means, the credit institution will guide them on the principles and procedures for depositing savings via electronic means, in accordance with the business conditions of the institution and the regulations on electronic transactions, anti-money laundering, and relevant laws, ensuring accurate and secure saving deposit transactions.
For the payment of principal and interest on savings deposits, the credit institution makes payments at its transaction locations following these procedures:
- Request the customer to present documents verifying personal information;- The customer performs the procedures for withdrawing the saving deposit and signs the withdrawal document. In the case of a joint saving deposit, each individual jointly depositing can authorize another person to withdraw the savings deposit on their behalf, provided there is written consent from the remaining individuals;- The credit institution checks and matches the customer's signature and identification information, ensuring they correspond to the customer information stored at the credit institution;- After completing the points a, b, and c of clause 1 of this Article, the credit institution performs the payment of the principal and interest of the saving deposit to the customer accurately and safely. Should the payment date coincide with a public holiday or legal weekday off, the payment is carried out on the next working day.
The currency for paying the principal and interest is the same as the currency initially deposited by the customer. For foreign currency saving deposits, upon the customer's request, the credit institution may pay the principal and interest in Vietnamese dong at the exchange rate defined by the credit institution. The payment for odd amounts in foreign currency is conducted according to the credit institution's regulations.
If customers request to transfer savings in Vietnamese dong to another account in their name at the same credit institution after liquidating the saving deposit or paying off their loan at the same credit institution, the institution will comply with the customer's request, in accordance with the relevant legal regulations. Customers cannot transfer foreign currency saving deposits to a payment account or other accounts per the current regulations on Forex management.
The payment of saving deposits for customers who are absent from their residence, declared missing, or declared deceased must comply with the regulations of the Civil Code.
For customers using electronic means to deposit savings, the credit institution will guide customers on the principles and procedures for paying savings through electronic means, ensuring sufficient information for verifying customer identity and ensuring the accurate, secure payment of saving deposits to the customer.
Draft Circular on Guidelines for Saving Deposit Transactions is currently open for public commentary. If this Circular comes into effect, Decision 1160/2004/QD-NHNN, Decision 47/2006/QD-NHNN shall cease to be effective.
