On June 16, 2022, the State Bank of Vietnam issues the Circular No. 04/2022/TT-NHNN providing for the application of interest rates upon premature withdrawal of deposits from credit institutions and foreign bank branches.

Accordingly, deposits eligible for premature withdrawal include: Time saving deposits; Time deposits; Certificates of deposit, promissory notes, treasury bills and bonds issued by the credit institutions; Other forms of receiving time deposits in accordance with the Law on Credit Institutions. In case where customers prematurely withdraw the entire deposits, credit institutions shall apply the maximum interest rate equal to their lowest interest rate applicable to demand deposits of customers and/or in the type of currency deposited at the time of premature withdrawal.

Besides, the Circular also provides regulations in case where customers prematurely withdraw a part of deposits. To be specific: For the deposits withdrawn before the date of maturity, credit institutions shall apply the maximum interest rate equal to their lowest interest rate applicable to demand deposits of customers and/or in the type of currency deposited at the time of premature withdrawal; For the remaining deposits, credit institutions shall apply the available interest rate applicable to the deposits that customers partially withdraw.

This Circular takes effect from August 01, 2022.

Circular No. 04/2022/TT-NHNN

 
 

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