On June 16, 2022, the State Bank issued Circular 04/2022/TT-NHNN providing for the application of interest rates upon premature withdrawal of deposits from credit institutions, foreign bank branches. Accordingly, the interest rates for premature withdrawal of deposits at credit institutions, foreign bank branches is regulated as follows:
– In case of entire withdrawal of the deposit: the maximum interest rate which is equal to the lowest demand deposit interest rate of that credit institution shall be applied according to the type of customer and/or the currency deposited at the time of premature withdrawal.
– In case of partial withdrawal of the deposit:
+ For deposits being prematurely withdrawn: the interest rate which is equal to the lowest demand deposit interest rate of that credit institution shall be applied according to the type of customer and/or the currency deposited at the time of premature withdrawal.
+ For the rest of the deposit: the applicable interest rate of the deposit that customers partly withdraw shall be applied.
(Compared with current regulations, Circular 04/2022/TT-NHNN has divided regulations on premature withdrawal interest rates in case of entire withdrawal and partial withdrawal).
Circular 04/2022/TT-NHNN comes into force from August 1, 2022 and replaces Circular 04/2011/TT-NHNN dated March 10, 2011.