Core Viewpoint - Many small and medium-sized banks are adopting a "long rise, short drop" interest rate adjustment strategy to gain a competitive edge during the 2026 "opening red" period, despite most deposit rates remaining below 2% [1][2][8] Group 1: Interest Rate Adjustments - Small and medium-sized banks are increasing long-term deposit rates while decreasing short-term rates, with some banks lowering demand deposit rates to as low as 0.05% [2][4] - The bank where Chen Hao works has seen fluctuations in interest rates, with the 3-year fixed deposit rate initially rising to 2.20% before being reduced to 1.80% [3][4] - Several banks have adjusted their deposit rates multiple times since January, reflecting a trend of differentiation among banks [3][4] Group 2: Customer Acquisition Strategies - Due to limited appeal of deposit rates, banks are resorting to gifts, subsidies, and cash-back offers to attract customers, with some offering cash-back of 50 yuan for every 10,000 yuan deposited [6][7] - Customer managers are often required to subsidize costs for gifts and rewards to meet their deposit targets, leading to financial strain on employees [7][8] - Some banks are offering special rates for new funds, with promotional rates reaching up to 1.85% for specific deposit products [5][6] Group 3: Regulatory Concerns - The practice of offering cash-back and gifts for deposits has raised regulatory concerns, as it may violate guidelines set by financial authorities aimed at maintaining fair competition in the deposit market [7][8] - The pressure on small and medium-sized banks to expand their scale and meet deposit targets is creating a cycle of challenges that may persist during their transformation [8]