Vietnam’s new regulation on interest calculation period for deposits

11:00, 13/10/2017

On September 29, 2017, the State Bank of Vietnam issued Circular No. 14/2017/TT-NHNN on methods of calculating interest on depositing and credit extension transactions between credit institutions and customers.

Circular No. 14/2017/TT-NHNN of the State Bank of Vietnam annuls regulation on monthly or annual interest rates applicable to savings deposits of Clause 2 Article 13 of Decision No. 1160/2004/QĐ-NHNN, instead, regarding deposits or loans with a term of one day or more, the credit institution may negotiate with the client on the interest duration and the date of determination of the balance for the calculation of interest by employing either of the following 2 methods:

- The interest duration is determined from the day following the day of disbursement of the loan or the day following the day of receipt of the deposit until the end of the last day of full payment for the deposit and loan (deleting the first day, including the last day of the interest duration).

- The interest duration is determined from the day following the date of disbursement of the credit extension or the day following the date of receipt of the deposit until the end of the day immediately preceding the date of full payment for the deposit and credit extension (including the first day, omitting the last day of the interest duration).

The time to determine the balance for interest calculation is at the beginning of any day within the interest duration.

View more details at Circular No. 14/2017/TT-NHNN of the State Bank of Vietnam, effective from January 01, 2018.

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