Early withdraw of term deposit in banks

22 June 2022
Nguyen Tuan Minh

#VietnamLaw #BankingLaw #LawUpdate

Vietnamese depositors will soon have fairer term deposit deals with financial institutions and banking lawyers shall not have to try nevigating through the jungle of banking regulations to find some way to make deposit deals fairer for their customers.

Under the current regulations, if a term depositor has the need to early withdraw a part of his term deposit in a bank, he will have to close such term deposit and only earn current interest rate for the entire deposit amount.

Under the new State Bank of Vietnam Circular No.04/2022/TT-NHNN, from 1 Aug 2022 the term depositor can early withdraw part(s) of his term deposit and earn the lowest current interest rate published by the bank for the withdrawn part(s) and can continue the remaining portion of the term deposit on the same terms until it become due and payable.

We guess some of local banks may need to customize their corebanking systems so they can provide term depositors such new benefits

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