The State Bank of Vietnam (SBV) is drafting a Circular regulating the application of interest rates on US dollar (USD) deposits of organizations and individuals at credit institutions and foreign bank branches.

The draft Circular stipulates the application of maximum interest rates to deposits in US dollars of organizations (excluding credit institutions and foreign bank branches), individuals at credit institutions and foreign bank branches; deposits include forms of receiving deposits as prescribed in Clause 27, Article 4 of the Law on Credit Institutions 2024.

Applicable subjects: Credit institutions, foreign bank branches operating in Vietnam under the provisions of the Law on Credit Institutions, excluding policy banks; organizations (excluding credit institutions, foreign bank branches), individuals depositing money at credit institutions.

According to the draft, credit institutions apply interest rates on US dollar deposits not exceeding the maximum interest rate decided by the Governor of the State Bank of Vietnam in each period for: Deposits of organizations (excluding credit institutions); Deposits of individuals.

The maximum interest rate for deposits in US dollars 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 US dollars at legal transaction locations within the credit institution's network of operations and post them on the credit institution's website (if any). Credit institutions are strictly prohibited from conducting promotions in any form (in cash, interest rates and other forms) that are not in accordance with the provisions of law when receiving deposits.

For USD deposit interest rate agreements before the effective date of this Circular, credit institutions and customers shall continue to implement the signed agreement until the end of the term; in case the agreed term expires and the organization or individual does not come to receive the deposit, the credit institution shall apply the deposit interest rate according to the provisions of this Circular.

TM