On March 17, 2014, the State Bank of Vietnam issued the Circular No. 06/2014/TT-NHNN providing for the maximum interest rate applicable to USD deposits of organizations, individuals at credit institutions.
Accordingly, credit Institutions; foreign bank branches shall apply interest rate applicable to USD deposits that is not higher than the maximum interest rate as announced by the Governor of the State Bank from time to time for deposits of entities (excluding credit institutions) and deposits of individuals.
Deposits shall include such forms as demand deposits, term deposits, savings deposits, deposit certificates, bills of exchange, bills, bonds and other forms of deposits received from entities (other than credit institutions), individuals.
The maximum interest rate applicable to deposits shall include payments for sale promotion in any form and be applied to the method of term-end interest payment and other methods of interest payment that are converted into the method of term-end interest payment.
Therefore, the maximum interest rate applicable to USD is 0.25% per annum for organization and 1.25% per annum for individual shall be annulled from March 18, 2014.
For interest rates applicable to term USD deposits of entities, individuals at credit institutions arising prior to March 18, 2014 shall be implemented until the expiry of the term; in the event where at the end of the agreed term, if the entities, individuals do not come for withdrawal, then the credit institutions shall apply interest rates for deposits in accordance with new provisions.
Credit institutions shall publicly post interest rates applicable to USD deposits at locations of deposit taking in accordance with provisions of the State Bank of Vietnam. It is strictly prohibited for credit institutions, in taking deposits, to offer sale promotion in any form (in cash, interest rate or other forms) that is contrary to provisions of applicable laws and of this Circular.
This Circular takes effects on March 18, 2014.
