[LEGAL NEWSLETTER – NOVEMBER 2024 ] CIRCULAR NO. 48/2024/TT-NHNN

On September 30, 2024, the Governor of the State Bank of Vietnam promulgated Circular No. 48/2024/TT-NHNN, replacing Circular No. 07/2014/TT-NHNN dated March 17, 2014, on the application of interest rates for deposits in Vietnamese dong by organizations and individuals at credit institutions and foreign bank branches. Accordingly, the regulations on interest rates for deposits in Vietnamese dong are as follows: 

1. Maximum Interest Rates for Short-Term Deposits 

Credit institutions are required to apply interest rates for deposits in Vietnamese dong by organizations and individuals that do not exceed the maximum interest rates applicable to demand deposits, term deposits of less than one month, and term deposits from one month to less than six months as determined by the Governor of the State Bank of Vietnam from time to time and for each type of credit institution. 

2. Interest Rates Based on Market Capital Supply and Demand 

Credit institutions are permitted to apply interest rates for term deposits of six months or longer by organizations and individuals based on the supply and demand for capital in the market. 

3. Interest Rates Including Promotional Offers 

The maximum interest rate for deposits in Vietnamese dong stipulated in this Circular includes promotional expenses in all forms. It applies to the end-of-term interest payment method as well as other interest payment methods converted to the end-of-term basis. 

4. Disclosure of Interest Rates and Restrictions on Promotions 

Credit institutions must publicly disclose interest rates for deposits in Vietnamese dong at their legally operating transaction points and on their official websites (if available). When accepting deposits, credit institutions are prohibited from offering promotions in any form (including monetary, interest rate, or other incentives) that are inconsistent with the provisions of law.