What types of deposits are not insured?

Specifically, according to the provisions of Article 18 of the 2012 Law on Deposit Insurance on insured deposits as follows:

Insured deposits

Insured deposits are deposits in Vietnamese Dong of individuals deposited at organizations participating in deposit insurance in the form of term deposits, non-term deposits, savings deposits, deposit certificates, promissory notes, treasury bills and other forms of deposits as prescribed by the Law on Credit Institutions, except for the types of deposits prescribed in Article 19 of this Law.

Deposits are not insured

- Deposits at credit institutions of individuals who own more than 5% of the charter capital of that credit institution.

- Deposits at credit institutions of individuals who are members of the Board of Members, members of the Board of Directors, members of the Board of Supervisors, General Director (Director), Deputy General Director (Deputy Director) of that credit institution; deposits at foreign bank branches of individuals who are General Director (Director), Deputy General Director (Deputy Director) of that foreign bank branch.

- Money to buy anonymous securities issued by deposit insurance participating organizations.

Deposit insurance fee

Insurance premiums are fees that credit institutions must pay to the deposit insurance fund to protect customer deposits. However, credit institutions usually do not collect this fee directly from customers, but will calculate it into the deposit interest rate received by customers.

According to the regulations of the State Bank of Vietnam, deposit insurance premiums are calculated and paid periodically every quarter in the accounting year. Participating organizations must pay the premium before the 20th of the first month of the following quarter, late payment will not be accepted.

The fee is calculated monthly and the total amount of this fee will be deducted from the deposit interest rate to pay to the deposit insurance fund. Therefore, customers do not have to pay this insurance fee directly, but will receive a lower interest rate on the deposit amount compared to uninsured deposits.

Paying deposit insurance is the function of the Vietnam Deposit Insurance Fund. When a bank or credit institution goes bankrupt or cannot pay customer deposits, the fund will pay out an amount to each customer.

In case of an incident, customers can go to the bank where they registered to deposit money to request benefits for insured deposits. The verification and settlement process will be carried out by the Vietnam Deposit Insurance Fund.

To pay this money, the fund will repossess assets from banks or credit institutions that are bankrupt or unable to repay deposits. If the amount collected is not enough to pay customers, the fund will prioritize payments to customers with small deposits and lower incomes.

Deposit insurance is a financial mechanism that protects people's deposits at banks. If a bank has financial problems or goes bankrupt, deposit insurance ensures that depositors will be reimbursed in part or in full, depending on the prescribed insurance limit. In Vietnam, the Deposit Insurance of Vietnam (DIV) is the organization responsible for implementing this policy, ensuring the safety and protecting the interests of depositors.

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