Foreigners: Allowed to get saving deposits in Vietnam or not?

Currently, many foreigners are living and working in Vietnam. Within that, many people want to get savings to stabilize their lives. 

Who is allowed to get savings in Vietnam?

In accordance with Clause 1, Article 5 of Circular No. 48/2018/TT-NHNN, “savings deposit” means an amount of money that a depositor deposits at a credit institution following the principle that principal and interest will be paid in full under an agreement with the credit institution. Within that, in accordance with the Article 3, Circular 48, the subjects of the savings deposit, including:

1. Vietnamese citizens who are 18 years of age or older and have the full civil capacity as per the law.

2. Vietnamese citizens who are 15 years of age to under 18 years of age and have not had limited legal capacity or lack of legal capacity as per the law.

3. Vietnamese citizens who have limited legal capacity or lack of legal capacity as per the law or are under 15 years and have their savings deposit transactions conducted by their legal representatives; Vietnamese citizens with limited cognition or behavior control by law who have their savings deposit transaction conducted by their guardians

In accordance with law provisions as above, foreigners are not allowed to take saving deposit in Vietnam. However, credit institutions also supply many products of term savings deposit besides the savings deposit service.

In accordance with Clause 1, Article 4 of the Circular No. 49/2018/TT-NHNN, “term deposit” means a sum of money of a customer held at a credit institution for a fixed term as agreed upon between the customer and the credit institution with the principle of full payment of principal and interest to the customer.

Are foreigners allowed to get saving deposits in Vietnam? (Illustration)

Not the same with the savings deposit, the term depositor shall not receive the savings book, all the savings deposit shall be saved in the bank system. Besides, the interest rate of the term deposit shall be agreed before or after the term or period payment, the interest rate of savings deposit is agreed to pay monthly, quarterly or at the end of period.

Term deposit-making entities prescribed in the Article 3, Circular 49 include:

1. Residents being organizations or individuals

2. Non-residents including:

a) Diplomatic missions, consulates, representative bodies of international organizations in Vietnam; representative offices, project offices of foreign organizations in Vietnam;

b) Vietnamese citizens not prescribed in Point e and g Clause 2 Article 4 of the Ordinance on Foreign Exchange (amended);

c) Foreign individuals permitted to reside in Vietnam for at least 6 months.

Therefore, in accordance with law provisions, foreign individuals who are permitted to reside in Vietnam for at least 6 months are allowed to get the term deposit in Vietnam.

Some notes for term deposit

Agreement on term deposit

In accordance with the Clause 1, Article 6 of the Circular 49, an agreement on a term deposit between a credit institution and a customer must be made in writing, at least containing:

a) Details of customer:

(I) As for an individual customer: Full name, nationality, resident or non-resident, number and issuing date of his/her identity proof and details of his/her legal representative in a case where the term deposit is made through the legal representative;

(ii) As for an organization customer: Name, resident or non-resident, number and issuing date of its identity proof; details of its legal representative, including: full name, number and issuing date of his/her identity proof;

(iii) As for a joint term deposit:  details of all customers jointly owning such joint term deposit;

b) Details of credit institution: Name of credit institution; full name and position of credit institution’s legal representative who enters into the term deposit transaction with the customer;

c) Amount, currency, deposit term, deposit date, maturity date;

d) Interest rate, interest payment method;

dd) Agreement on premature withdrawal, deposit term extension;

e) Details of the checking account of the customer used to make a term deposit and receive payment thereof include:  name of checking account holder, number of checking account, name of credit institution which opens such checking account;

g) Actions taken in a case where the customer’s checking account is frozen, closed, temporarily locked and the checking account’s status is changed;

h) Method of access to term deposit account;

i) Actions against the case where the agreement on term deposit is crumpled, torn, or lost;

k) Rights and obligations of customer, credit institution;

l) Validity of agreement.

Apart from that, Article 6 also prescribes that parties can agree the other contents which are suitable with law provisions.

Interest rate, in accordance with Article 7, Circular 49, Each credit institution may set forth term deposit interest rates in conformity with regulations of the State Bank of Vietnam on interest rates in every period.

At the same time, the deposit term interest payment method shall be determined according to the agreement made between the credit institution and the customer.

Deposit term extension

In accordance with Article 9, Circular 49, The deposit term extension upon the maturity date of the term deposit shall be carried out according to the agreement made between the credit institution and the customer.

Within that, as for a non-resident who is a foreign organization or individual and a resident who is a foreign individual, the agreement on deposit term extension shall be made.

Actions to be taken upon risks

In accordance with Article 14 of the Circular 49, the credit institution shall provide guidelines for actions against crumpled, torn or lost agreement on term deposit and other risks as to term deposits in accordance with relevant law provisions, management model, business characteristics and conditions of the credit institution and protect legitimate rights of the customer.
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