After several adjustments, the current time deposit interest rates of major state-owned banks and joint-stock banks have dropped to low levels. However, as the end of the year draws to a close, when small and medium-sized banks start a “war to acquire deposits”, some banks choose to “go against the trend.”
Recently, some small and medium-sized banks have bucked the trend and raised deposit interest rates, and even the interest rates on some bank deposit products have rarely returned to the 3% level. Faced with the pressure of a “good start”, different banks’ end-of-year customer acquisition strategies have also seen a mixed trend of upward and downward adjustments.
Some banks raise deposit interest rates in stages
“Currently, I still have 10 fixed deposit quotas with guaranteed principal and interest, and the interest rate is around 2.95%-3%. Is anyone interested?” Wang Yu (pseudonym), who works as a teller in a local commercial bank, has recently been working for Work hard on your own performance.
Wang Yu said that compared with major state-owned banks, the deposit interest rate of his bank has always been relatively high. Now that we are in the end-of-year sprint, we are also increasing the attractiveness of our deposits by raising deposit interest rates.
“Generally speaking, the main factors that affect the interest rate are the amount of principal and whether it is a new customer. If you want to achieve the highest level, you basically need to be a new user and there is a time limit. You also need the bank manager to help reserve a quota in advance.” Wang Yu said.
She also mentioned that in previous years, the company would have some activities such as sending rice, flour, grains and oils to absorb savings, but now more and more people prefer to handle it directly online instead of going to the business office, so they have given up these fancy activities. Directly increase deposit interest rates.
According to the average interest rates of time deposits of various banks monitored by Rong360 Digital Technology Research Institute in November, state-owned banks had fewer interest rate adjustments, while joint-stock banks had more adjustments to 3-year and 5-year deposit interest rates, with some rising and falling, and many rising. in a falling situation. Overall, the average interest rates for deposits of 1 year and above all increased month-on-month, with the 3-year period seeing a larger increase, rising 9.5 basis points (BP) month-on-month.
Recently, many media have also paid attention to the fact that many small and medium-sized banks such as Henan Huaibin Rural Commercial Bank, Henan Gushi Rural Commercial Bank, Guilin National Rural Bank, etc. have issued announcements that they will raise some term deposit interest rates in the near future. Earlier, Guangdong Heshan Zhujiang Rural Bank, Guangxi Xing’an Minxing Rural Bank, etc. made this move to give profits in November.
Why does this situation often occur in rural commercial banks and village banks? Liu Yinping, an analyst at Rong360 Digital Technology Research Institute, explained that small and medium-sized banks are inferior to large banks in terms of branch coverage, number of customers, and social credibility. The stability of deposits is relatively poor, and the source of liabilities is relatively single, often through more advantageous interest rates. to attract savers.
From a comprehensive review, the increase in the “profit margin” of these banks is about 5-15 basis points, which is a phased measure and has certain threshold requirements for the minimum deposit amount. Guangxi Xing’an Minxing Rural Bank even stated in the notice that the move was “to promote the marketization of deposit interest rates.”
Heshan Zhujiang Rural Bank announced the adjustment of time deposit interest rates.Screenshot from the WeChat official account of Heshan Zhujiang Rural Bank
Industry: Deposit interest rates are still on a downward trend overall
“Raising the deposit interest rate at this point is a ‘good start’ measure launched by a few banks. This is a phased and seasonal phenomenon, which is equivalent to a marketing method to attract deposits.” Regarding the phenomenon of raising deposit interest rates against the trend, the chief researcher of China Merchants Union Dong Ximiao said that this move will have little impact on the entire banking system.
“The increase in deposit interest rates is mainly due to the intensification of the ‘deposit relocation’ phenomenon of individual banks.” Ming Ming, chief economist of CITIC Securities, also mentioned that small and medium-sized banks are under greater pressure to acquire deposits due to factors such as geographical limitations and less security than large banks. As the end of the year approaches, with increased assessment pressure, small and medium-sized banks need to increase deposit interest rates to increase their attractiveness to depositors.
Facing similar pressure, some small and medium-sized banks have continued to lower deposit interest rates. For example, Beihai Rural Credit Cooperative and Guang’an Hengfeng Rural Bank recently issued announcements to lower some of the listed deposit interest rates. Industry experts also pointed out that overall, most bank deposit interest rates are still showing a downward trend.
“Because loan interest rates have been falling, deposit interest rates will definitely fall as a whole. Although I have also heard about some bank interest rates rising, we have no plans to launch similar policies here.” Cheng Peng, a staff member of a state-owned bank ( (pseudonym) told reporters from Sino-Singapore Finance.
Cheng Peng also mentioned that his bank’s year-end mobilization meeting was held in early December. In addition to deposits, I and my colleagues will also be provided with multiple indicators such as personal pensions, inclusive benefits, and agency distribution. “Bank funds are usually tight at the end of the year, and various means to attract depositors, including raising deposit interest rates, are intended to alleviate some pressure on the increase in liabilities in the coming year.”
“Deposit interest rates rise and fall, which reflects the functioning of the domestic deposit market mechanism, which is a normal phenomenon.” Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank, said, but the premise is that the domestic deposit market maintains a normal competitive order, and each bank’s deposit interest rate adjustment must be Meeting the requirements of self-regulatory organizations and adjusting deposit interest rates must be consistent with actual operating conditions such as bank liabilities and net interest margins.
Dong Ximiao said that under the background that the Central Economic Work Conference pointed out that “promoting the stability and decline of comprehensive social financing costs”, it is expected that in the next stage, as the cost of bank funds decreases, the deposit interest rate is more likely to fall. Small and medium-sized banks must rationally expand deposit business based on their own assets and liabilities. They must not only maintain appropriate growth in deposits, but also keep liability costs within a reasonable range.