The State Bank of Vietnam (SBV) on September 28 issued a new circular focusing on abuses by banks trying to apply deposit interest rates higher than the permitted ceiling level of 14% per annum. Circular 30 continues tightening ceiling interest rates Under Circular 30, the ceiling interest rate for dong deposits with no term or terms shorter than one month is 6%. The ceiling on deposits with a one-month term or longer remains unchanged at 14% per year. People's credit funds are allowed to apply the highest deposit rate for one-month term or longer at 14.5% per annum. The new circular will come into force from October 1. The SBV has also banned banks from offering promotions for deposits such as cash and preferential interest rates. Earlier, the SVB issued Circular 02, requesting all commercial bank to apply a ceiling deposit interest rate of 14% per year. However, a number of them, including Western Bank and An Binh Bank, sought ways to attract customers by offering a maximum rate of 14% per year for deposits of one-day, two-day, one-week or two-week terms. Vietnam tours
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