Headlines 28/06/2022 14:03 CH

New regulations of Vietnam on interest rates on premature withdrawal of deposits

Uyên Vũ

On June 16, 2022, the State Bank of Vietnam promulgated Circular No. 04/2022/TT-NHNN on the application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches.

According to Circular No. 04/2022/TT-NHNN , regulations on premature withdrawal of deposits from credit institutions and foreign bank branches in Vietnam (hereinafter referred to as “credit institutions”) are as follows:

- When a client withdraws all of the deposit: credit institutions shall apply a maximum interest rate equal to their lowest interest rate on demand deposits based on the type of client and/or the currency of the deposit when such client withdraws it.

- When a client withdraws a part of the deposit:

+ Regarding the part of withdrawn deposit before maturity, credit institutions shall apply a maximum interest rate equal to their lowest interest rate on demand deposits based on the type of client and/or currency of the deposit when such client withdraws it;

+ Regarding the remaining deposit, credit institutions shall apply the interest rate equal to the interest rate applied to the deposit that the client has withdrawn a part.

(Compared to the current regulations, Circular No. 04/2022/TT-NHNN has separate regulations on interest rates on premature withdrawal of deposits when a client withdraws all or a part of it)

Circular No. 04/2022/TT-NHNN comes into force as of August 1, 2022 and replaces Circular No. 04/2011/TT-NHNN dated March 10, 2011.

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