The maximum interest rates on Vietnamese Dong deposits at credit institutions in Vietnam

The maximum interest rates on Vietnamese Dong deposits at credit institutions in Vietnam

The maximum interest rate on deposits in Vietnamese Dong for organizations (excluding credit institutions, foreign bank branches) and individuals at credit institutions and foreign bank branches is regulated under Circular 48/2024/TT-NHNN as follows:

- The maximum interest rate applicable for demand deposits and term deposits of less than 1 month is 0.5% per annum.

- The maximum interest rate applicable for term deposits from 1 month to less than 6 months is 4.75% per annum; specific for People's Credit Funds and Microfinance Institutions, the maximum interest rate for term deposits from 1 month to less than 6 months is 5.25% per annum.

Decision 2411/QD-NHNN takes effect from November 20, 2024, and replaces Decision 1124/QD-NHNN dated June 16, 2023.

For interest rates on deposits in Vietnamese Dong by organizations and individuals at credit institutions and foreign bank branches arising before November 20, 2024, such rates shall be implemented until the end of the term; in cases where the agreed term ends and organizations or individuals do not withdraw their deposits, credit institutions and foreign bank branches shall apply the deposit interest rates in accordance with Decision 2411/QD-NHNN.

Regulations on applying the maximum interest rate on deposits in Vietnamese Dong at credit institutions in Vietnam

Circular 48/2024/TT-NHNN stipulates the maximum interest rate on deposits in Vietnamese Dong at credit institutions in Vietnam as follows:

- Credit institutions shall apply interest rates on deposits in Vietnamese Dong by organizations and individuals not exceeding the maximum interest rate for demand deposits, deposits with a term of less than 1 month, and deposits with a term of 1 month to less than 6 months as decided by the Governor of the State Bank of Vietnam from time to time for each type of credit institution.

- Credit institutions shall apply interest rates on deposits in Vietnamese Dong for terms of 6 months or more by organizations and individuals based on market supply and demand.

- The maximum interest rate on deposits in Vietnamese Dong as regulated in Circular 48/2024/TT-NHNN includes all forms of promotional expenses, applicable to the method of paying interest at maturity and other interest payment methods converted into the maturity interest payment method.

- Credit institutions shall publicly list the interest rates on deposits in Vietnamese Dong at their lawful transaction locations within the operating network and post them on their websites (if any). Credit institutions, when receiving deposits, are prohibited from carrying out promotions in any form (in cash, interest rates, and other forms) not in compliance with the law.

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