In the wave of deposit interest rate reductions started by large banks, small and medium-sized banks are continuing to follow up. However, in the context of general cuts, some banks have recently raised deposit rates against the trend.
According to the data monitored by the Rong 360 Digital Technology Research Institute, in November 2023, the average interest rate of banks' 3-month, 6-month, and 1-year deposits remained flat month-on-month, and the average interest rate of deposits with a maturity of 2 years and above rose and fell, of which the average interest rate of 2-year and 5-year deposits fell by 0.2BP and 1.3BP month-on-month, and the average interest rate of 3-year deposits increased by 4.3BP month-on-month. At present, there has been an inversion of the interest rates of 3-year deposits and 5-year deposits, and the situation is most obvious in joint-stock banks and city commercial banks.
Some banks have raised their deposit rates
A few days ago, Henan Huaibin Rural Commercial Bank announced that it will raise the interest rate of new individual lump sum deposit and lump sum time deposit in stages from December 12, and the minimum deposit amount is greater than or equal to 10,000 yuan. Specifically, the interest rates on one-year, two-year and three-year fixed deposits were raised from 1.80%, 2.00% and 2.35% to 1.95%, 2.15% and 2.40%. Among them, the 1-year and 2-year tenors of individual lump sum deposits and withdrawals were both raised by 15 basis points.
Huaibin Rural Commercial Bank said that the interest rate adjustment began on December 12 this year and will last until March 31 next year, after which it will return to the original interest rate.
Henan Gushi Rural Commercial Bank also issued an announcement on the official WeChat platform on December 1, starting from December 1, the bank will implement a new interest rate for new account opening individuals with a minimum deposit amount of more than 10,000 yuan, and the interest rates on 3-month, 6-month, 1-year, 2-year and 3-year fixed deposits will rise from 1.40%, 1.65%, 1.80%, 2.0% and 2.35% respectively to 1.50%, 1.70%, 1.95%, 2.15% and 2.40%, and the 5-year fixed deposit interest rate will remain unchanged.
According to the Financial Times, as early as November 1, Guangdong Heshan Zhujiang Village Bank adjusted the one-year execution interest rate of lump sum deposit and withdrawal from 2.1% to 2.25%, raising it by 15 basis points, and Guangxi Xing'an Minxing Village Bank raised the six-month and one-year "county-exclusive time" deposit rates by 30 basis points and 15 basis points respectively from November 21.
It is understood that from the end of the year to March next year, the three-year fixed deposit interest rate of Haikou Sunan Village Bank is 3.45%, and the five-year term is 3.65%. At present, the maximum interest rate of Shandong Weifang Bank's 3-year and 5-year fixed deposit of 50,000 yuan can reach 3.2%, and the interest rate of 3-year and five-year deposit of 10,000 yuan can also reach 3.1%.
Industry insiders: The overall trend is downward
According to the Financial Times, industry experts say this is a phased, temporary measure. Some small and medium-sized banks have raised their deposit interest rates mainly because of their limited ability to attract deposits, and the increase in deposit interest rates has attracted depositors and made an effort to achieve a "good start".
"Local banks have relatively weak debt capacity and high competitive pressure, and their performance at the end of the year is more aggressive, and the beginning of the year is often the peak period for credit delivery. Zhou Maohua, a macro researcher at the financial market department of Everbright Bank, told reporters.
According to the Financial Associated Press, Liu Yinping, a researcher at the Rong 360 Digital Technology Research Institute, told reporters 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.
"However, the overall trend of bank deposit rates is declining. A financial manager of a joint-stock bank told reporters. 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.
Editor|He Xiaotao, Du Hengfeng
Proofreading|Liu Siqi
Cover picture source: Photo by Liu Guomei, Daily Economic News
Daily Economic News, Financial Times, Financial Associated Press, 21st Century Business Herald
National Business Daily