Non-term deposit interest rates offered by commercial banks and other credit institutions will be capped at 6 percent per year, effective October 1, pursuant to Circular No 30/2011/TT-NHNN issued by the State Bank of Vietnam on Sept. 28.
The cap on deposit interest rates for term deposits of one month or more remains unchanged at 14 per cent, 14.5 percent at credit unions.
The new circular replaces Circular No 02 issued back on March 3. However, according to the State Bank, a number of commercial banks had flouted that regulation by offering higher interest or bonus interest to entice depositors. Some banks have also given depositors overnight interest of 14 percent.
These practices continued to introduce a high element of risk into the nation's banking system, the State Bank said./.
The cap on deposit interest rates for term deposits of one month or more remains unchanged at 14 per cent, 14.5 percent at credit unions.
The new circular replaces Circular No 02 issued back on March 3. However, according to the State Bank, a number of commercial banks had flouted that regulation by offering higher interest or bonus interest to entice depositors. Some banks have also given depositors overnight interest of 14 percent.
These practices continued to introduce a high element of risk into the nation's banking system, the State Bank said./.
