Decision 419/QD-NHNN in 2020 on the maximum interest rate for deposits in Vietnam dong of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular 07/2014 /TT-NHNN issued by the State Bank of Vietnam

DECISION

MAXIMUM INTEREST RATES OF DEPOSITS IN VIETNAM DONG OF ORGANIZATIONS AND INDIVIDUALS AT CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES ACCORDING TO CIRCULAR NO. 07/2014/TT-NHNN DATED MARCH 17, 2014

THE GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16, 2010 and the Law No. 17/2017/QH14 dated November 20, 2017 providing amendments to the Law on credit institutions;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Circular No. 07/2014/TT-NHNN dated March 17, 2014 of the Governor of the State Bank of Vietnam prescribing maximum interest rates of deposits in Vietnam Dong of organizations and individuals at credit institutions;

At the request of the Director of the Monetary Policy Department;

HEREBY DECIDES

Article 1. Maximum interest rates of deposits in Vietnam Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014 are as follows:

1. The maximum interest rate of demand deposits and deposits with a term less than 1 month is 0.5%/year.

2. The maximum interest rate of deposits with a term from 1 month to less than 6 months is 4.75%/year; in particular, people's credit funds and microfinance institutions shall adopt the maximum interest rate of 5.25%/year with respect to deposits with a term from 1 month to less than 6 months.

Article 2. 

1. This Decision comes into force from March 17, 2020 and supersedes Decision No. 2415/QD-NHNN dated November 18, 2019 of the Governor of the State Bank of Vietnam prescribing maximum interest rates of deposits in Vietnam Dong of organizations and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014.

2. Interest rates of term deposits in Vietnam Dong of organizations and individuals at credit institutions and foreign bank branches made before the effective date hereof shall continue to be applied until these term deposits reach their maturity dates; in case these term deposits are not withdrawn at their maturity dates, the interest rates of these term deposits shall be calculated according to this Decision.

Article 3. Chief of the Ministry’s Office, the Director of the Monetary Policy Department, Heads of units affiliated to the State Bank of Vietnam, Directors of branches of the State Bank of Vietnam in provinces and central-affiliated cities, Chairpersons of the Boards of Directors, Chairpersons of the Boards of Members and General Directors (Directors) of credit institutions and foreign bank branches shall implement this Decision./.

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