Consolidated Document number 34/VBHN-NHNN stipulates the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches.

CIRCULAR

Provisions on the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches

Circular No. 04/2022/TT-NHNN dated June 16, 2022, issued by the Governor of the State Bank of Vietnam, concerning the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches, shall take effect from August 1, 2022, and has been amended and supplemented by:

Circular No. 47/2024/TT-NHNN dated September 30, 2024, issued by the Governor of the State Bank of Vietnam, amending Clause 3 of Article 3 of Circular No. 04/2022/TT-NHNN dated June 16, 2022, issued by the Governor of the State Bank of Vietnam, concerning the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches, shall take effect from November 20, 2024.

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

On the basis of the Law on Credit Institutions organization credit institution dated June 16, 2010;

Pursuant to the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to Decree No. 16/2017/NĐ-CP dated February 17, 2017, At the proposal of stipulating the functions, tasks, powers and structure organization of the State Bank of Vietnam;

At the proposal of the Departmentưởof Monetary Policy;

The Governor of the State Bank of Vietnam issues this Circular on the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches[1].

Article 1. Scope of Regulation

1. This Circular provides for the application of interest rates for early withdrawal, early payment, or early settlement of deposits as agreed (hereinafter referred to as early withdrawal of deposits) by organizations (excluding credit institutions and foreign bank branches), individuals depositing money at credit institutions and foreign bank branches.

2. For pledged funds deposited with a term at credit institutions and foreign bank branches to ensure the performance of obligations under the law, the application of interest rates for early withdrawal of deposits shall be carried out in accordance with separate documents of the Government and the State Bank of Vietnam. In cases where separate documents of the Government and the State Bank of Vietnam do not specify interest rates for early withdrawal of deposits, they shall be implemented according to agreements between the parties in compliance with the provisions of this Circular.

Article 2. Applicability

1. Credit institutions and foreign bank branches (hereinafter referred to as credit institutions) operating in Vietnam in accordance with the Law on Credit Institutions, excluding policy banks.

2. Organizations (excluding credit institutions), individuals depositing money at credit institutions (hereinafter referred to as customers).

Article 3. Forms of Early Withdrawal Deposits

1. Term savings deposits.

2. Term deposits.

3.[2] Deposit certificates issued by credit institutions.

4. Other forms of accepting term deposits as prescribed by the Law on Credit Institutions.

Article 4. Early Withdrawal of Deposits

1. Early withdrawal of deposits refers to the case where a customer withdraws part or all of the deposit before the maturity date, payment date, or settlement date of the deposit.

2. Credit institutions and customers agree on early withdrawal of deposits in compliance with specific regulations of the State Bank of Vietnam for each type of deposit. The interest rate for early withdrawal of deposits shall be agreed upon in compliance with the provisions of Article 5 of this Circular. In the absence of an agreement on early withdrawal of deposits, the credit institution shall apply the interest rate for early withdrawal of deposits in compliance with the provisions of this Circular.

Article 5. Interest rate for early withdrawal of deposits

1. In case the customer withdraws the entire deposit before maturity: the credit institution shall apply the maximum interest rate equal to the lowest interest rate for demand deposits applicable to the customer category and/or currency type at the time of early withdrawal.

2. In case the customer withdraws part of the deposit before maturity:

a) For the portion withdrawn early, the credit institution shall apply the maximum interest rate equal to the lowest interest rate for demand deposits applicable to the customer category and/or currency type at the time of early withdrawal;

b) For the remaining portion, the credit institution shall apply the current interest rate applicable to the deposit from which the customer has withdrawn part of the amount.

Article 6. Implementation clause[3]

1. This Circular takes effect from August 1, 2022, and replaces Circular No. 04/2011/TT-NHNN dated March 10, 2011, issued by the Governor of the State Bank of Vietnam on the application of interest rates in cases where organizations and individuals withdraw deposits before maturity from credit institutions.

2. As for interest rate agreements for early withdrawal of deposits prior to the effective date of this Circular, credit institutions and customers shall continue to implement according to the agreed terms until the due date, payment date, or settlement date of the deposit or in accordance with the provisions of this Circular.

Article 7. Implementation Organization

The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam, credit institutions, and foreign bank branches are responsible for organizing the implementation of this Circular./.

----------------------------------------

[1] Circular No. 47/2024/TT-NHNN dated September 30, 2024 amending Clause 3 of Article 3 of Circular No. 04/2022/TT-NHNN dated June 16, 2022, issued by the Governor of the State Bank of Vietnam on the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches is based on the following grounds:

“Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

On the basis of the Law on Credit Institutions organization credit institution on January 18, 2024;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022, At the proposal of stipulating the functions, tasks, powers and structure organization of the State Bank of Vietnam;

At the proposal of the Departmentưởof Monetary Policy;

The Governor of the State Bank of Vietnam issues this Circular amending Clause 3 of Article 3 of Circular No. 04/2022/TT-NHNN dated June 16, 2022, issued by the Governor of the State Bank of Vietnam on the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches".

[2] This provision is amended pursuant to Article 1 of Circular No. 47/2024/TT-NHNN dated September 30, 2024, amending Clause 3 of Article 3 of Circular No. 04/2022/TT-NHNN dated June 16, 2022, issued by the Governor of the State Bank of Vietnam on the application of interest rates for early withdrawal of deposits at credit institutions, taking effect from November 20, 2024.

[3] Articles 2 and 3 of Circular No. 47/2024/TT-NHNN dated September 30, 2024, amending Clause 3 of Article 3 of Circular No. 04/2022/TT-NHNN dated June 16, 2022, issued by the Governor of the State Bank of Vietnam on the application of interest rates for early withdrawal of deposits at credit institutions, take effect from November 20, 2024, as follows:

“Article 2. Implementation clause

This Circular takes effect from November 20, 2024.

Article 3. Implementation Organization

The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam, credit institutions, and foreign bank branches are responsible for organizing the implementation of this Circular./.”