The big four banks – Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank – have simultaneously adjusted their interest rates on large certificates of deposit. It's not just a numbers game, it's about the wallets of many savers.
So, after entering 2024, what is the latest deposit interest rate of large banks' large-denomination certificate of deposit products?
01.
Why are large certificates of deposit popular?
Generally speaking, it means that the depositor deposits a large sum of money of no less than 200,000 yuan in the bank for a fixed period of time. Because of the large amount and the flexible tenor, the bank will usually give a more attractive interest rate than a regular deposit, which is like saying to the depositor: "Since you trust me, keep your money here, and I will give you more in return." ”
For a long time, the four major banks have become the first choice for many depositors seeking stable income because of their stability and reliability, coupled with outlets all over the country.
However, starting in 2023, the four major state-owned banks have cut deposit rates three times in a row. After entering the Spring Festival in 2024, major state-owned banks have begun to reduce deposit interest rates. Affected by this, the interest rate of large-denomination certificates of deposit has also been adjusted accordingly, and the interest rate of large-denomination certificates of deposit is getting lower and lower.
At present, the situation of large-denomination certificates of deposit of the four major banks is as follows:
1. ICBC's large-value certificates of deposit are 200,000 yuan. Certificates of Deposit are divided into 7 tranches: (1) 1-month with an annual interest rate of 1.5% ;(2) 3-month with an annual interest rate of 1.5% ;(3) 6-month with an annual interest rate of 1.7% ;(4) 1-year with an annual interest rate of 1.8% ;(5) 2-year with an annual interest rate of 1.9% ;(6) 3-year with an annual interest rate of 2.35%. (7) 5-year term, the annual interest rate is 2.4%.
2. The large-value certificate of deposit of the Agricultural Bank of China is 200,000 yuan. Certificates of Deposit are divided into 6 tranches: (1) 1-month term with an annual interest rate of 1.5% ;(2) 3-month term with an annual interest rate of 1.5% ;(3) 6-month term with an annual interest rate of 1.7% ;(4) 1-year term with an annual interest rate of 1.8% ;(5) 2-year term with an annual interest rate of 1.9% ;(6) 3-year term with an annual interest rate of 2.35%. Compared with ICBC, ABC does not have a 5-year large-denomination certificate of deposit product.
3. Bank of China's large-value certificates of deposit are 200,000 yuan. Certificates of Deposit are divided into 5 tranches: (1) 1-month term with an annual interest rate of 1.49% ;(2) 3-month term with an annual interest rate of 1.5% ;(3) 6-month term with an annual interest rate of 1.7% ;(4) 1-year term with an annual interest rate of 1.8% ;(5) 2-year term with an annual interest rate of 1.9%. Compared with ICBC and ABC, Bank of China's one-month deposit interest rate on large-denomination certificates of deposit is 1 basis point lower. At the same time, there are no 3-year and 5-year certificates of deposit.
4. CCB's large-value certificates of deposit for less than 3 years are all 200,000 yuan. Large certificates of deposit are divided into 6 tranches: (1) 1-month with an annual interest rate of 1.49% ;(2) 3-month with an annual interest rate of 1.5% ;(3) 6-month with an annual interest rate of 1.7% ;(4) 1-year with an annual interest rate of 1.8% ;(5) 2-year with an annual interest rate of 1.9% ;(6) 3-year with an annual interest rate of 2.35% (requires a minimum deposit of 800,000). CCB does not have a 5-year-old CDs product.
02.
Why are interest rates being adjusted?
After entering 2024, a number of banks have announced intensive cuts in deposit interest rates, and even 70 basis points for large certificates of deposit.
In fact, this adjustment is not a whim for the banks. It reflects changes in the larger economic environment, the needs of financial markets, and changes in the cost of funds for banks.
In general, there are three reasons for the reduction of the interest rate on large certificates of deposit:
1. The economic downturn may lower the interest rate on large certificates of deposit, and after the interest rate is lowered, the funds can be used for consumption, and consumption can stimulate the economy;
2. The interest rate of large-amount certificates of deposit is generally higher than the interest rate of ordinary time deposits, and large-amount certificates of deposit are a tool for banks to adjust liabilities.
3. The international situation is full of uncertainties, and internal factors such as the geopolitical situation, the epidemic, and the increasing downward pressure on the economy are also factors that have led to the reduction of interest rates on large certificates of deposit.
What about savers?
For our average savers, this means that if you prefer to earn steady interest on large CDs, you may need to rethink your strategy. Short-term CDs are less attractive, so you may want to consider investing in CDs with a longer maturity or looking for other ways to invest.
03.
Purchase large certificates of deposit from the four major banks
Precautions
1. Certificates of Deposit (CDs) are transferable. If you buy a 3-year certificate of deposit, hold it for 2 years, and suddenly use the funds in a hurry, then you can sell it on the secondary market, but this will also cause you to face some interest losses, but the interest is always higher than switching to current savings.
2. At present, the advantages of large certificates of deposit and fixed deposits of the four major banks are not obvious. On the surface, the listed interest rates of the four major banks are much lower than those of large-denomination certificates of deposit, but when it comes to the physical outlets of each bank, some of them will also raise the deposit interest rate appropriately in order to attract depositors.
For example, the interest rate of three-year fixed deposits, the fixed deposits of some branches of the four major banks are 2.35%, and the interest rate on large certificates of deposit is also 2.35%. Therefore, even if depositors cannot grab large certificates of deposit, the interest rate on time deposits is about the same.
04.
Looking to the future
While the current rate cut may feel a bit frustrating, it is also part of the ongoing changes in financial markets. There may be a sequel to this wave of bank adjustments, and with the changes in the economic environment and market demand, the interest rate policy will also be adjusted accordingly.
In fact, for us depositors, the key is to remain flexible, not only to understand the market dynamics, to be ready to adjust their investment strategies at any time, to grasp every investment opportunity, but also to avoid potential risks.
In a word, investment is also a technical job, want to enjoy the benefits of fishermen, obviously unrealistic, the better way is to continue to learn and improve themselves, and adapt to market changes, so as to move forward steadily in this magnificent financial sea. Therefore, in the face of interest rate adjustments, we should not panic too much, but should pay more attention to long-term investment goals and strategies.
Wan Ziwen said: Every word of the article was typed out by me, and I clicked "watching" to let me know that you are also "doing your best" for life.