In the wave of deposit interest rate reductions started by large banks, small and medium-sized banks are continuing to follow up. Guangxi Dongxing Rural Commercial Bank has lowered the interest rate of fixed deposits of many maturities since today, and Guangxi Pingle Rural Cooperative Bank has also said that it will adjust the interest rates of fixed deposits of some maturities from December 20. It is worth mentioning that in the context of general cuts, some banks have recently raised deposit rates against the trend.
A number of people in the banking industry told the Financial Associated Press that the bank's reduction of the deposit interest rate is aimed at reducing the cost of bank liabilities. Different banks have differences, and the adjustment situation and adjustment range mainly depend on the bank itself and the interest rate adjustment of similar banks. Towards the end of the year, banks are facing the year-end assessment and have begun to prepare for the "good start" marketing campaign, and the possibility of some banks raising deposit interest rates in stages cannot be ruled out in the short term. However, in the medium and long term, the interest rate on long-term deposits has been declining, and some deposit funds may flow into the wealth management field.
Small and medium-sized banks continue to follow up on the reduction of deposit interest rates, and some banks' characteristic deposits have also changed
Small and medium-sized banks continue to follow suit and cut deposit rates. Guangxi Pingle Rural Cooperative Bank said that on December 20, 2023, it will adjust individual demand deposits, six-month lump sum deposits, two-year lump sum deposits, three-year lump sum deposits, and five-year lump sum deposits, which will be adjusted to 0.2%, 1.85%, 2.3%, 3.0%, and 3.1% respectively. According to the information released by the bank in November 2022, the deposit interest rates for the above-mentioned tenors adjusted from November 3 of that year were 0.35%, 1.75%, 2.55%, 3.25% and 3.35% respectively. Judging from the data comparison, the long-term deposit interest rate of Guangxi Pingle Rural Cooperative Bank has been reduced.
Coincidentally, Guangxi Dongxing Rural Commercial Bank will adjust the listed interest rates of RMB deposits for products such as demand, lump sum deposit, lump sum deposit, lump sum deposit, lump sum deposit, principal deposit and interest withdrawal, agreement deposit, and call deposit from December 19, 2023. Among them, according to the bank's staff, the interest rates on 3-year and 5-year deposits have been adjusted from 3.25% and 3.35% to 2.6% and 2.65%. In addition, from December 15, Daan Huimin Rural Bank adjusted the interest rate of some deposits to 2.55% for two-year deposits and 3.0% for three-year and five-year deposits. Historical information shows that from June 1, the bank's three-year and five-year deposit execution rates are 3.15%, and two-year execution rates are 2.73%.
While some small and medium-sized banks followed up with the reduction of deposit interest rates, there were also changes in bank characteristic deposits, among which some bank characteristic deposits were closed. Since December 15, Tianjin Binhai Rural Commercial Bank's personal "profit increase" deposit business has ceased operation. In addition, from December 1, 2023, Bank of Communications will completely shut down the "Super Deposit" product. According to the customer service of Bank of Communications to the reporter of the Financial Associated Press, the bank has stopped signing new "super deposit" deposit products on December 18, 2019.
Prior to this, some banks also lowered the interest rate on special deposits. A customer manager of a joint-stock bank told the Financial Associated Press reporter that in late October, the bank's special deposit interest rate was lowered. Specifically, before the adjustment, the interest rate for a minimum deposit of 10,000 yuan was 2.85% for 3 years and 2.9% for 5 years. After the adjustment, the maximum interest rate for 3 years is 2.75% and the initial deposit amount is 50,000 yuan, and the minimum deposit amount for 5-year products with an interest rate of 2.9% is increased to 300,000 yuan. On the whole, some of the bank's characteristic deposit products have been adjusted in terms of deposit interest rate and minimum deposit amount.
"Featured deposits are the same type of deposits as ordinary deposits, and the minimum deposit amount is higher in comparison. On the whole, for the same deposit period, the types of deposits with interest rates from high to low are large-amount certificates of deposit, special deposits, and ordinary lump sum deposits. As the interest rate of ordinary time deposit continues to fall, the interest rate of special deposit products is decreasing. The above-mentioned account manager told the reporter of the Financial Associated Press.
The interest rate of individual banks is now rising against the trend Industry: the overall trend is declining Some deposit funds may flow to the wealth management field
It is worth mentioning that in the context of the overall decline in bank deposit rates, some banks have recently raised deposit rates against the trend. For example, from December 12, 2023, Huaibin Rural Commercial Bank will raise the interest rate of 3-month, 6-month, 1-year, 2-year, and 3-year new individual lump sum deposit and withdrawal time deposit in stages, with the original interest rate for the initial deposit amount less than 10,000 yuan, and the new interest rate for the initial deposit amount greater than or equal to 10,000 yuan, and the maximum increase in the interest rate is 15BP. From December 1, 2023, Gushi Rural Commercial Bank will raise the interest rates of 3-month, 6-month, 1-year, 2-year and 3-year individual lump sum deposit and withdrawal time deposits for newly opened accounts.
In fact, in the past, there have been cases where banks have raised the interest rates on deposits of certain maturities. For example, Xinjiang Fukang Rural Commercial Bank said on August 4 that from that day, the listed interest rate of RMB 3-year lump sum deposit and withdrawal will be adjusted from 2.6% to 2.86%, and the listed interest rate of other deposit products will remain unchanged. Prior to this, the bank adjusted the 3-month lump sum deposit and withdrawal interest rate from 1.43% to 1.5% and the 6-month lump sum deposit and withdrawal interest rate from 1.69% to 1.7% on July 13.
Liu Yinping, a researcher at the Rong 360 Digital Technology Research Institute, told the Financial Associated Press reporter that due to the strong willingness of residents to save and the lack of social credit demand, banks are generally not short of deposits, but near the end of the year, banks are facing the year-end assessment, and began to prepare for the "good start" marketing activities, and in the short term, it is not excluded that some banks may raise deposit interest rates in stages.
"The reduction of the listed deposit interest rate by banks aims to reduce the cost of bank liabilities and stabilize the interest rate spread of banks, and the long-term deposit interest rate has been lowered more to reduce the pressure on long-term liabilities of banks in the context of deposit regularization. A banking analyst believes that different banks are different, and the adjustment situation and adjustment range mainly depend on the bank itself and the interest rate adjustment of similar banks.
"However, the overall trend of bank deposit rates is declining. A financial manager of a joint-stock bank told a reporter from the Financial Associated Press. This year, the deposit interest rate has undergone two rounds of large-scale adjustments, and the banks have mainly lowered the long-term deposit interest rate. According to the data monitored by the Rong 360 Digital Technology Research Institute, the average interest rates of 2-year, 3-year, and 5-year deposits in November 2023 decreased by 27BP, 39.5BP, and 43.5BP respectively compared with the end of last year.
"In the future, the trend of bank deposits may ease. Part of the deposit funds may flow to the wealth management field, which is good for the wealth management market, but it also depends on the fluctuation of the net value of the wealth management product itself, and the stable income of the product can attract more deposit funds. Liu Yinping said. Looking forward to the future deposit interest rate, a major bank researcher said that it is expected that there will be a possibility that the deposit listing rate will fall next year as the LPR declines.
This article originated from the Financial Associated Press
![The interest rates on the deposits of workers and peasants, China Construction Communications, China Merchants Bank, and other banks were officially lowered today, and the large-amount certificates of deposit of some banks were also lowered[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)