Core Viewpoint - The article provides a detailed analysis of the five-year fixed deposit interest rates offered by Agricultural Bank of China as of August 7, 2025, highlighting the potential returns and considerations for investors [1][2]. Summary by Sections Five-Year Fixed Deposit Earnings Calculation - The annual interest rate for a five-year fixed deposit is 1.95%. For an investment of 100,000 RMB, the total interest earned over five years would be 9,750 RMB, calculated using simple interest [1]. Important Considerations - **Official vs. Actual Rates**: The calculation is based on the official rate, but actual rates may vary by branch. It is essential to confirm the final rate with the bank before making a deposit [1]. - **Early Withdrawal Penalties**: If funds are withdrawn before the five-year term, interest will be calculated at the lower current savings rate, leading to significant losses [2]. - **Interest Rate Fluctuation Risks**: Choosing a five-year term locks in the interest rate, protecting against potential future declines [4]. - **Automatic Renewal Impact**: If the deposit is set for automatic renewal, the interest earned will be added to the principal for the next term at the new rate [4]. Comparison with Other Investment Options - **Three-Year Fixed Deposit**: A hypothetical three-year fixed deposit at 2.0% would yield 6,000 RMB in the first three years, with potential additional earnings if reinvested, but it carries the risk of changing rates upon renewal [5]. - **Large Denomination Certificates of Deposit**: For amounts starting at 200,000 RMB, these typically offer higher rates than standard fixed deposits [7]. - **Savings Bonds**: Currently, savings bonds offer rates that may exceed those of fixed deposits, backed by government credit, making them a secure investment option [7]. Recommendations - Investors are advised to confirm the actual interest rates with their local Agricultural Bank branch and to compare various financial products, including three-year fixed deposits, large denomination CDs, and low-risk options like government bonds, to find the best fit for their financial needs [6][7].

Core Viewpoint - Recent adjustments in deposit interest rates by small and medium-sized banks have led to a notable decline in long-term deposit rates, with some institutions offering five-year fixed deposit rates as low as 1.2%, which is below the state-owned banks' rates of 1.3% for the same period [1][2]. Group 1: Rate Adjustments - Several rural commercial banks and village banks have announced reductions in their fixed deposit rates, with Guangdong Qingxin Rural Commercial Bank lowering its five-year rate to 1.25% and Guangzhou Huadu Chouzhou Village Bank to 1.2% [2]. - The adjustments in small and medium-sized banks contrast sharply with the collective rate cuts by state-owned banks, which reduced their three-month to two-year rates by 15 basis points and five-year rates by 25 basis points [2][3]. Group 2: Market Dynamics - The decline in long-term deposit rates among small and medium-sized banks is attributed to a combination of narrowing net interest margins, maturity mismatch risks, and the transmission of policy changes [3][4]. - The net interest margin for commercial banks in China has decreased to 1.43% in the first quarter of this year, indicating pressure on profitability [4]. Group 3: Future Trends - The phenomenon of inverted interest rates, where short-term rates are higher than long-term rates, is expected to persist in the short term due to ongoing net interest margin pressures [4][5]. - Small and medium-sized banks are likely to adopt a pricing strategy that favors higher short-term rates while suppressing long-term rates to attract liquidity-sensitive customers [4][5]. Group 4: Strategic Recommendations - To address the challenges posed by the current interest rate environment, small and medium-sized banks are encouraged to implement differentiated pricing strategies, innovate deposit services, and accelerate digital transformation [5][6]. - Enhancing strategic research capabilities and refining deposit pricing strategies are essential for improving customer retention and managing funding costs effectively [5][6].