Article 10 of Circular 48/2018/TT-NHNN stipulates the currency for receiving and paying savings deposits at banks as follows:

1. The currency used to receive savings deposits is Vietnamese Dong or foreign currency. The credit institution determines the foreign currency used to receive savings deposits.

2. The currency used to pay savings deposits is the currency in which the depositor has deposited. Payments for odd foreign currencies are made according to the instructions of the credit institution.

3. For savings deposits in Vietnamese Dong of Vietnamese citizens who are residents, the depositor and the credit institution may agree on the payment of principal and interest into the depositor's own Vietnamese Dong payment account.

4. For savings deposits in Vietnamese Dong of non-resident Vietnamese citizens deposited from the depositor's payment account, the depositor and the credit institution shall agree to pay the principal in the amount deposited and the corresponding interest into the depositor's own payment account in Vietnamese Dong.

5. For foreign currency savings deposits of Vietnamese citizens who are residents deposited from the depositor's payment account, the depositor and the credit institution shall agree to pay the principal in the amount deposited and the corresponding interest into the depositor's own foreign currency payment account.

According to the above regulations, Vietnamese individuals can deposit savings in foreign currency at banks. However, the money used to pay interest is also the foreign currency deposited. Therefore, customers cannot deposit money in US dollars and receive interest in Vietnamese currency.

Advantages of saving in US Dollars

Instead of keeping US dollars yourself, saving in a bank helps protect your money better with a tight security system and strict information verification process.

Besides, saving USD can help generate good profits if you know how to take advantage of the exchange rate difference. Customers can save USD at the bank and wait for the USD/VND exchange rate to increase to sell for profit.

Limitations when saving US dollars

In addition to the above advantages, USD savings still have some limitations such as:

- Low interest rate : According to the State Bank's regulations, the USD deposit interest rate is 0%/year. Meanwhile, VND savings deposits of 6 months or more can receive interest rates of up to 6%/year, much higher than USD interest rates.

- Mostly no insurance included : When saving in USD, customers will not receive savings insurance like in VND. This means that customers will not have their savings rights guaranteed by the state if the bank they deposit money in goes bankrupt.

However, in Vietnam, the rate of bank bankruptcy is almost zero, so customers do not have to worry too much about this risk.

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