Transactions at a branch of Vietcombank. Credit institutions are not allowed to offer promotional incentives in cash, interests or other forms, to lure depositors. — VNA/VNS Photo Trần Việt

Credit institutions are prohibited from offering promotional incentives in cash, interest, or other forms to attract depositors, according to new circulars on deposit interest rates for Vietnamese đồng and US dollars.

The circulars will take effect on November 20.

For Vietnamese đồng deposits with terms of less than six months, banks must apply interest rates that do not exceed the ceiling set by the Governor of the State Bank of Vietnam (SBV) for specific periods.

For deposit with terms from six months or higher, the rates will be determined by the market supply and demand.

The circulars regulate that the maximum interest rates cover promotional expenses. Therefore, banks are not allowed to offer any promotional incentives.

Banks must publicly list interest rates at their locations and websites.

This aims to prevent the facts that several banks are paying higher deposit rates than their listed rates through the forms of promotions.

Trần Ngọc Minh, Director of the HCM City-based SBV branch, previously said the fact that commercial banks offer discounts or gifts to draw customers is normal, but discounts were also considered a form of increasing interest rates. — VNS