"Start-up Savings" deposits fully insured


Aligning with deposit insurance (DI) policy’s goal of protecting the majority of depositors, especially those with limited access to information, Vinh Thanh People’s Credit Fund (PCF) (in Vinh Thanh district, Can Tho city) has launched a product called "Start-up savings" with the commitment to returning to depositors their deposited money in full including the principal and interest in case the PCF encounters operational risks which may lead to insolvency or dissolution.

Vinh Thanh PCF has recently organized an event for the "announcement of copyright and DI policy" in Vinh Thanh district, Can Tho city with the participation of more than 250 delegates, including: representatives of local authorities, organizations, associations, and the PCF’s members and depositors. Due to the complicated development of the Covid-19 pandemic, the representative of the Deposit Insurance of Vietnam (DIV), Deputy General Director Vu Van Long, attended the event online from Hanoi.

The startup program of Vinh Thanh PCF was granted the copyright registration certificate by the Copyright Office of the Ministry of Culture, Sports and Tourism on June 10, 2020. The full name of the program is "Hệ thống đầu tư tiền tệ công chúng Việt Nam 4.0" in Vietnamese, or "Vietnam 4.0 Community Money Investment System " in English, abbreviated as VN-CMIS 4.0, commonly known as "Start-up savings ”.

According to the start-up program, depositors at Vinh Thanh PCF can choose one of four following fixed savings levels: VND 500,000, VND5 million, VND50 million and VND100 million. The interest rates are announced by Vinh Thanh PCF in each period of time but do not exceed 0.75% per year with the minimum term of 12 months. In addition to earning the interest just like other traditional savings, with the "startup savings" product, the depositor can also enjoy 02 extra income sources: direct income when successfully introducing 03 other depositors for this program; and indirect income based on the total of deposits under the program (each depositor in this program is allowed to introduce only 03 other depositors for the program).

The advantage of the "start-up savings" product is that the depositor can earn extra incomes apart from the interest on his deposit by introducing depositors for Vinh Thanh PCF (directly introducing 03 customers and supporting the lower level to attract more customers). At the same time, Vinh Thanh PCF also commits to applying a deposit limit suitable for each period for the product so that the depositor is fully refunded his deposit (principal and interest) if liquidation or dissolution occurs as stipulated in the law on DI. Currently, Vinh Thanh PCF is applying a deposit limit of VND 50 million for each individual with a fixed 12- month term for the "start-up savings” product. In the time to come, when the Government approves a new DI coverage limit of VND 125 million (according to the draft Decision of the Prime Minister on the DI coverage limit dated July 31, 2020), Vinh Thanh PCF will put into effect a deposit limit of VND 100 million for this savings product.


Mr. Nguyen Thanh Hoai,Vinh Thanh PCF’s Director, introduces the "Start-up savings" product

At the event, through 02 video clips, the participants had access to basic information about DI policy and the DIV such as the objective of DI policy, the concept of DI, DI organizations, insured institutions, insured deposits, DI coverage limits, the time to trigger a reimbursement process, the deadline for reimbursement, the DIV, the DIV’s core operations, the achievements of DI policy implementation over the past 20 years.

Besides, via online platform, the DIV’s Deputy General Director, Dr. Vu Van Long answered some questions on DI policy raised at the event, such as: insurable deposits, whether or not Vinh Thanh PCF is a member of the DI system, how to identify an insured institution, how to contact the deposit insurer and the deadline for reimbursement.

Vinh Thanh PCF’s staff advise customers how to deposit money

With the deposit limit of VND 50 million per individual and the fixed 12-month term of the “start-up savings” product provided by Vinh Thanh PCF, all deposits (including principal and interest) in this program are fully guaranteed if the DIV has to make payouts as legally prescribed, except deposits of the individuals specified in Article 19 of the Law on DI. However, depositors also need to strictly comply with the depositing processes at PCFs in particular and other insured institutions in general to be best protected by the law. This is also the legal basis for the DIV to reimburse depositors when an insurance payment obligation arises./.

Research and International Cooperation Department