Circular No. 30/2011/TT-NHNN on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches

Article 1. Financial institutions shall set the interest rate for deposits in Vietnamese dong of organizations (excluding financial institutions) and individuals including promotional expenses under all forms as follows:

1. The maximum interest rate applicable to demand deposits and time deposits with terms less than one month is 6% per annum.

2. The maximum interest rate applicable to time deposits with terms of one month or more is 14% per annum; specifically, for People's Credit Funds, the maximum interest rate for time deposits with terms of one month or more is 14.5% per annum.

3. Deposits include demand deposits, time deposits, savings deposits, deposit certificates, bills, promissory notes, bonds, and other deposit forms of organizations (excluding financial institutions) and individuals as provided for in Clause 13, Article 4 of the Law on Financial Institutions.

Article 2. The maximum interest rate for deposits prescribed in Article 1 of this Circular applies to end-of-period interest payment methods and other interest payment methods converted to end-of-period interest payment methods.

Article 3. Financial institutions shall publicly display the interest rate for deposits in Vietnamese dong at locations accepting deposits in accordance with the regulations of the State Bank of Vietnam. Strictly prohibit financial institutions from conducting promotions in any form (in cash, interest rates, and other forms) that do not comply with the provisions of the law and this Circular when accepting deposits.

Article 4. Implementation

1. This Circular takes effect from October 1, 2011 and replaces Circular No. 02/2011/TT-NHNN dated March 3, 2011 of the Governor of the State Bank of Vietnam stipulating the maximum interest rate for depositing capital in Vietnamese dong.

2. For interest rates on time deposits in Vietnamese dong of organizations and individuals at financial institutions arising before the date this Circular takes effect, they shall be implemented until the end of the agreed term; if the term has expired and the organization or individual does not withdraw the deposit, the financial institution shall set the interest rate for the deposit in accordance with this Circular.

3. Banking inspection and supervision agencies and State Bank of Vietnam branches in provinces and centrally-administered cities shall conduct inspections, audits, and supervision of the implementation of regulations on deposit interest rates in Vietnamese dong; apply measures within their authority to handle violations by financial institutions as stipulated in this Circular.

4. The Director of the Office, Heads of the Monetary Policy Department and other units under the State Bank of Vietnam, Governors of State Bank of Vietnam branches in provinces and centrally-administered cities; Chairmen of Management Boards, Members of Boards of Directors, and General Managers (Directors) of financial institutions and related organizations and individuals are responsible for implementing this Circular./.