Huan Qiu Wang·2025-06-20 02:07Core Insights - The report from Rong360 Digital Technology Research Institute indicates a comprehensive decline in commercial bank fixed deposit rates, with medium to long-term rates entering the "1% era" and significant month-on-month decreases exceeding 30 basis points [1][3]. Group 1: Deposit Rate Trends - The average interest rates for 3-year and 5-year fixed deposits have dropped to 1.711% and 1.573% respectively, with the 5-year rate lagging behind the 3-year rate by 13.8 basis points [3]. - All fixed deposit terms have now entered the "1% era," with average rates for terms ranging from 3 months to 2 years experiencing varying degrees of decline [3]. - The largest drop in large-denomination certificates of deposit occurred in the 5-year term, which fell by 28.33 basis points in May [3]. Group 2: Banking Sector Challenges - As deposit rates continue to decline, banks are facing increased pressure to attract deposits, leading to some institutions engaging in illegal deposit solicitation practices [4]. - A recent incident involving a bank offering a promotional gift for fixed deposits sparked regulatory scrutiny, prompting financial regulators to issue warnings against disorderly deposit solicitation practices [4]. - Industry experts note that with both loan and deposit rates in a downward trend, banks are under significant pressure on net interest margins, yet many are still competing aggressively for market share and customer resources, resulting in persistent high-interest deposit solicitation practices [4].