Banks are not allowed to offer promotions to depositors.

Circular 48/2024 regulating the application of interest rates to deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches (collectively referred to as credit institutions) issued by the Governor of the State Bank, effective from today, November 20.

Accordingly, credit institutions apply interest rates on deposits in Vietnamese Dong of organizations and individuals not exceeding the maximum interest rates for demand deposits, term deposits of less than 1 month, and term deposits from 1 month to less than 6 months decided by the Governor of the State Bank in each period and for each type of credit institution.

In addition, credit institutions apply interest rates on deposits in Vietnamese Dong for deposit terms of 6 months or more of organizations and individuals based on market supply and demand.

According to Circular 48, the maximum interest rate for deposits in Vietnamese Dong prescribed in this Circular includes promotional expenses in all forms, applicable to the end-of-term interest payment method and other interest payment methods converted according to the end-of-term interest payment method.

Credit institutions shall publicly post interest rates on deposits in Vietnamese Dong at legal transaction locations within the credit institution's network of operations and post them on the credit institution's website (if any).

When receiving deposits, credit institutions are not allowed to conduct promotions in any form (in cash, interest rates and other forms) that are not in accordance with the provisions of law.

This Circular replaces Circular 08/2014 regulating interest rates on deposits in Vietnamese Dong of organizations and individuals at credit institutions.

For interest rate agreements in Vietnamese Dong before the effective date of this Circular (November 20, 2024), credit institutions and customers shall continue to implement the agreement until the end of the term. In case the agreed term expires and the customer does not come to receive the deposit, credit institutions shall apply the deposit interest rate according to the provisions of Circular 48.

To ensure consistency in legal basis during implementation, the State Bank of Vietnam issues decisions regulating deposit interest rates, in which the legal basis for issuance is revised and deposit interest rates are not changed, including:

Decision No. 2410 on maximum interest rates for deposits in US dollars of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 46. Accordingly, the interest rate applied to deposits of organizations and individuals is 0%/year.

Decision No. 2411 on maximum interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 48.

Accordingly, the maximum interest rate applied to demand deposits and deposits with terms of less than 1 month is 0.5%/year; the maximum interest rate applied to deposits with terms from 1 month to less than 6 months is 4.75%/year, and the maximum interest rate applied to deposits in Vietnamese Dong at people's credit funds and microfinance institutions is 5.25%/year.

In addition, interest rates on deposits with terms of 6 months or more are determined by credit institutions and foreign bank branches based on market supply and demand of capital.