Interest rate cuts at banks: who offers the best conditions in June?

Interest rate cuts at banks: who offers the best conditions in June?

Today, June 1, 2025, current developments in the banking sector show a noticeable decline in interest rates in Vietnam. A reporter survey has shown that the number of banks that have cut their interest rates from late February to May has been steadily decreasing. This follows a period in which deposit rates increased in 2023 and 2024 to increase deposit volumes. However, banks are preparing for possible interest rate hikes in the first two months of 2025 as inflation pressures remain under control and monetary policy eases.

The Prime Minister recently ordered stricter controls on banks that had previously increased their deposit rates. Bank management is required to comply with rules and regulations and violations are to be punished consistently. According to the State Bank, 30 banks have already significantly reduced their deposit rates, from 0.1 to 1.05% per year. This trend continues: the decline in interest rates slowed through May, with only four banks cutting rates last month.

Current interest rates at a glance

Currently, one bank, Vikki Bank, offers the highest interest rate of 6% per annum for a term of 12 months. The largest state-owned commercial banks – Agribank, Vietcombank, VietinBank and BIDV – are the main players in setting the interest rate level. Interest rates vary, with the highest currently being 5% and the lowest being 1.6% per annum. Private banks usually offer interest rates between 5.1% and 5.6% per year for a term of 12 months.

• Höchster Zinssatz: 6 % pro Jahr (Vikki Bank)
• Höchster Zinssatz bei anderen Banken: 5 % pro Jahr
• Niedrigster Zinssatz: 1,6 % pro Jahr
• Üblicher Zinssatz bei Privatbanken: zwischen 5,1 % und 5,6 % pro Jahr

Financial expert Nguyen Quang Huy notes that interest rates could be nearing near-term bottom. However, a possible adjustment in savings rates could still occur in the fourth quarter, depending on lending and exchange rate pressures. Dr. Nguyen Huu Huan predicts that deposit rates will remain low until the end of the year.

Influences of monetary policy

In the context of global monetary policy, the role of the European Central Bank (ECB), which sets the key interest rate, is also considered. The ECB's decisions have a significant influence on the economy in the euro area. Their interest rate policy is based on an in-depth analysis of the economic situation and inflation. ECB interest rate cuts typically make credit cheaper for consumers and businesses, which can boost economic growth.

One of the reasons for the ECB to cut interest rates may be to stimulate economic growth, especially during periods of economic slowdown. A lower interest rate also means that banks receive less compensation for parked liquidity, which motivates them to lower interest rates on loans and thus encourage consumption and investment.

In summary, the ECB's actions and the reactions of banks in Vietnam need to be monitored in the context of global economic developments. These interactions shape the current situation of interest rates in both Asia and Europe. While local banks deal with interest rate policy within Vietnam, the ECB remains a key player in the monetary policy game, which also has an impact on global markets through its decisions in the Eurozone, LBBW's analysis shows.