Following the implementation of the deposit interest rate cuts of six large state-owned banks and China Merchants Bank, a number of joint-stock banks have followed up and adjusted. On December 25, a reporter from Beijing Business Daily combed through and found that 11 joint-stock banks, including Shanghai Pudong Development Bank, China CITIC Bank, Everbright Bank, Huaxia Bank, Minsheng Bank, Guangfa Bank, Ping An Bank, Bohai Bank, Hengfeng Bank, Zheshang Bank and Industrial Bank, have adjusted the listed interest rates of RMB deposits, with a reduction of about 10-25 basis points. For depositors' future deposit plans, analysts suggest that depositors should choose banks with longer fixed deposit tenors, such as three-year or five-year tenors, to obtain higher interest rates, and at the same time, spread their deposits across different banks to reduce risk.
The stock banks have all been downgraded
On December 25, a reporter from Beijing Business Daily noticed that 11 joint-stock banks, including Shanghai Pudong Development Bank, China CITIC Bank, Everbright Bank, Huaxia Bank, Minsheng Bank, Guangfa Bank, Ping An Bank, Bohai Bank, Hengfeng Bank, Zheshang Bank and Industrial Bank, have lowered the listed interest rates of RMB deposits. So far, national commercial banks, including six state-owned banks and 12 joint-stock banks, have joined the ranks of this round of deposit interest rate reduction.
The downgraded deposit product categories cover short-term, medium- and long-term issues. Among them, the listed interest rates of three-month, six-month and one-year time deposits were generally lowered by 10 basis points, the listed interest rates of two-year time deposits were generally reduced by 20 basis points, and the listed interest rates of three-year and five-year time deposits were generally reduced by 25 basis points. However, due to the difference in the previous listed interest rates, there are still differences in the listed interest rates of various joint-stock banks after this round of interest rate reductions.
Taking Hengfeng Bank as an example, the bank's adjusted three-month, six-month, one-year, two-year, three-year and five-year fixed deposit interest rates were 1.20%, 1.45%, 1.65%, 1.90%, 2.30% and 2.30% respectively, and the interest rates before adjustment were 1.3%, 1.55%, 1.75%, 2.10%, 2.55% and 2.55%.
The adjusted interest rates of three-month, six-month, one-year, two-year, three-year and five-year time deposits of Ping An Bank are 1.20%, 1.45%, 1.65%, 1.90%, 2.00% and 2.05% respectively.
The adjusted listed interest rates of three-month, six-month, one-year, two-year, three-year and five-year time deposits are 1.20%, 1.45%, 1.65%, 1.80%, 2.00% and 2.05% respectively, with reductions of 10 basis points, 10 basis points, 10 basis points, 10 basis points, 20 basis points, 25 basis points and 25 basis points.
The latest three-month, six-month, one-year, two-year, three-year and five-year fixed deposit interest rates implemented by China CITIC Bank are 1%, 1.2%, 1.3%, 1.6%, 1.85% and 1.9% respectively.
Prior to this, the Bank of China, the Agricultural Bank of China, the Industrial and Commercial Bank of China, the China Construction Bank, the Bank of Communications, the Postal Savings Bank of China, and the China Merchants Bank had collectively "taken action" to lower the interest rates on deposits, and after the adjustment, the three-year time deposit interest rates of the seven banks were reduced from 2.2 percent to 1.95 percent, and the five-year time deposit interest rates were reduced to 2 percent.
Liu Yinping, an analyst at the Rong 360 Digital Technology Research Institute, said in an interview with a reporter from Beijing Business Daily that as the market interest rate continues to decline, the interest rate spread space is being squeezed, and the profit margin of the bank is also narrowing, and it is imperative to reduce the cost of the debt side.
How do savers take care of their "money bags"?
The reduction of deposit interest rates will help stabilize the net interest margin of the banking industry and improve the ability of the banking industry to prevent risks.
Taking Minsheng Bank's "Safe Deposit" special product as an example, a customer manager of the bank said, "The interest rate of the three-year fixed deposit of 'Safe Deposit' before the reduction was 2.75%, and the interest rate after the reduction was 2.6%. According to the bank's account manager, the bank's two-year interest rate on large certificates of deposit was 2.35% before the adjustment, while the CITIC Bank's mobile banking app shows that the current two-year interest rate on large certificates of deposit has been changed to 2.15%.
In terms of large state-owned banks, taking the Industrial and Commercial Bank of China as an example, the bank's personal pension exclusive deposit five-year, three-year, and three-year deposit rates for new customers were 2.4%, 2.35%, and 2.35% respectively, all of which were 25 basis points lower than before, and the three-year interest rate on large certificates of deposit with a minimum deposit of 200,000 yuan was 2.35%, down 30 basis points from the previous 2.65%. On December 25, the maximum annual interest rate of CCB's minimum deposit of 200,000 yuan for one month to three years was 2.35%, down 30 basis points from before the adjustment.
Horizontal comparison found that after multiple rounds of reduction, deposit products with interest rates of more than 3% have disappeared, and the interest rate of most banks' long-term characteristic deposits and large certificates of deposit is concentrated at about 2.3%-2.7%, in addition, the Beijing Business Daily reporter found that there are still about 2.9% of the products on sale for pension exclusive five-year time deposits.
Bai Wenxi, chief economist of IPG China, pointed out that lowering the deposit rate can reduce the financing cost of enterprises and individuals, help stimulate market vitality, and promote investment and consumption, while the decline in bank deposit interest rate will cause more funds to flow into the market, which is conducive to expanding money supply and supporting the development of the real economy. In the future, the trend of deposit interest rates will remain stable for a period of time, but it will also be moderately adjusted according to the economic situation and policy needs.
At the same time that the deposit interest rate is falling in an all-round way, how can depositors take good care of their money bags? Bai Wenxi further suggested that after the deposit interest rate is lowered, depositors can consider the following ways to optimize their deposit strategy: First, choose a bank with a higher interest rate for deposits; second, choose a bank with a longer term of fixed deposits, such as a three-year or five-year term, to obtain a higher interest rate; and third, disperse their deposits among different banks to reduce risks. At the same time, depositors can also consider consulting a bank financial advisor to understand the wealth management products that are suitable for them and achieve asset diversification. In the context of the continuous development of the mainland financial market, depositors can grasp the opportunity to rationally allocate assets and achieve wealth appreciation.
Beijing Business Daily reporter Song Yitong
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