Recently, many private banks have collectively lowered their deposit interest rates.
Wind data shows that as of now, there are 19 private banks in China. Since the beginning of this year, Zhejiang MYbank, Jiangxi Yumin Bank, Liaoning Zhenxing Bank, Sichuan Xinwang Bank, etc. have updated their deposit interest rates on their official websites.
Another bank announced a downward adjustment.
On March 1, the official website of Wuhan Zhongbang Bank updated its RMB deposit interest rate table. The annual interest rates of the bank's 2-year, 3-year and 5-year time deposits (all refer to lump sum deposits and withdrawals) are respectively. 65% and 270%, both of which are 30 basis points lower than the previous listed rate.
Source: Zhongbang Bank's official website The last time Zhongbang Bank updated the RMB deposit interest rate table was on August 1, 2023, when the annual interest rates of 2-year, 3-year, and 5-year lump sum deposits were listed respectively. 00%。
Private banks still have an advantage over banks with larger interest rates.
It is worth mentioning that although many private banks have recently lowered the listed interest rates of some term deposits, they still have an interest rate advantage compared with the listed interest rates of most large state-owned banks and joint-stock banks with the same maturity.
According to Sino-Singapore Jingwei, among the 19 private banks, 12 have a five-year lump sum deposit and withdrawal product with a listed interest rate of more than 3%.
For example, the annual interest rates of Huatong Bank and Fumin Bank are respectively listed for five-year lump sum deposits and withdrawals. 75%, compared to 2% for the big four, which is 190 basis points and 175 basis points higher, respectively. Among the 19 private banks, 12 have an annual interest rate of more than 3%, accounting for more than half. Among them, the top three with the highest deposit interest rates are Huatong Bank, Zhenxing Bank and Minshang Commercial Bank, respectively. 3%。Among them, the listed interest rate of Zhenxing Bank's 5-year time deposit is 160 basis points higher than 2%; MYbank's 3-year fixed deposit interest rate is 195% is 65 basis points higher.
The listed interest rates of major state-owned banks have been lowered before.
According to the previous news of the 21st Century Business Herald reporter, in December 2023, the listed interest rate of deposits of large state-owned banks will be lowered, and the listed interest rate of different types and maturities of deposits will be reduced by 01 to 025 percentage points. After the adjustment, the listed interest rates of 2-year, 3-year and 5-year fixed deposits of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank have all been reduced. 00%。
Image source 21 Data Journalism Lab.
According to China's ** newspaper, although the listed interest rate has declined, in the eyes of some depositors, they are more concerned about the real interest rate of time deposits. "Although the listed interest rate of the 3-year deposit of a state-owned bank is below 2%, the actual deposit interest rate will be about 30 basis points higher when it is actually saved. An office worker in Beijing said.
A number of small and medium-sized banks have also made intensive adjustments.
Starting in 2024, urban commercial banks, rural commercial banks, and village and township banks have also joined the downward adjustment army, and at present, small and medium-sized banks such as Xinjiang Yili Rural Commercial Bank, Dujiangyan Jindu Village and Township Bank, Guangxi Baise Youjiang Rural Cooperative Bank, and Qingnong Commercial Bank have successively announced the reduction of deposit interest rates. Recently, many banks, including Suixi Rural Commercial Bank, Changji Rural Commercial Bank, Hailun Huifeng Village Bank, Tuyouqi Mengyin Village Bank, etc., have lowered the interest rates of various fixed deposit products to varying degrees. Changji National Village Bank announced that it will adjust some RMB deposit interest rates from March 1, such as the three-year interest rate for corporate and private fixed periods from 295% adjusted to 275%, and the five-year period was adjusted from 3% to 275%, down one basis point each;The interest rate on private steps to win three months is increased by 185% adjusted to 17%, and the six-month interest rate is increased by 205% to 19%, respectively, down by one basis point.
Meizhou Hakka Village Bank announced on February 29 that the listed interest rates of one- to five-year lump sum deposit products have been adjusted, of which the one-year interest rate has been increased from 205% to 195%, the biennium by 24% to 23%, three-year period by 27% to 265%, five-year period by 27% to 25%, and the interest rate of other products remains unchanged.
In February, more small and medium-sized banks issued adjustment announcements
Yushu Rural Commercial Bank said that according to the market-oriented demand of interest rates, the bank decided to adjust the upper limit of the interest rate on demand deposits, three-year and five-year lump sum deposits from 0:00 on February 22, 2024, and the interest rate on demand deposits was lowered to 02%；The three-year and five-year interest rates were lowered to 27%。According to the announcement of Bank of Liuzhou, the bank adjusted the interest rate of some deposit products on February 21, of which the one-year fixed deposit interest rate was increased from 225% to 215%, the interest rate on three-year fixed deposits is from 34% to 32%, the five-year fixed deposit rate is from 38% to 32%。Guilin's banking industry issued an adjustment announcement.
The general trend of interest rate cuts has not changed.
Will deposit rates be further lowered in the future? Wang Pengbo, a senior analyst in the financial industry at Broadcom Consulting, believes that in the long run, this behavior will not continue. After all, the reduction of deposit interest rates is the trend of the times, and there is still room for deposit interest rates to be lowered this year. Xiao Yu, chief fixed income analyst of Zhongtai, said that there is a need for further reduction in deposit rates. In his view, on the one hand, the overall net interest margin of half of the listed banks and commercial banks is already at a low level, and some banks need to expand the net interest margin by raising the loan interest rate or reducing the deposit rate. On the other hand, some small and medium-sized banks have launched a "first-class war" in order to attract savings, resulting in high deposit interest rates, and the net interest margin of rural commercial banks is at a high level, and there is still room for decline. A picture to understand the impact of the reduction in deposit rates
*: 21st Century Business Herald.