Core Viewpoint - The article discusses the significant decline in large-denomination certificate of deposit (CD) interest rates, with many banks offering rates below 1% for one-year and shorter products, while a substantial amount of deposits, approximately 75 trillion yuan, is set to mature in 2026, leading to a "deposit migration" trend among savers [3][10]. Group 1: Interest Rate Trends - Large-denomination CD rates are rapidly entering the "0% era," with most banks' new one-year and shorter products falling below 1%, and three-year rates generally below 2% [3][4]. - The trend towards shorter-term products is evident, with five-year options nearly disappearing, and some banks raising minimum deposit requirements to 1 million yuan [4][6]. - The average interest rates for various terms have dropped significantly, with the average rate for three-month deposits at 0.944% and one-year deposits at 1.277% as of September 2025 [8]. Group 2: Deposit Maturity and Migration - An estimated 75 trillion yuan of residential fixed-term deposits will mature in 2026, with a notable increase in the amount maturing compared to 2025 [10][11]. - Many savers are opting to transfer their funds from large banks to smaller banks, which typically offer slightly higher rates, rather than moving to equity markets [11][12]. - Younger savers are creatively splitting their deposits among different banks to take advantage of promotional offers, likening it to a game [12]. Group 3: Bank Strategies to Retain Deposits - In response to the pressure of deposit outflows, banks are launching various initiatives to retain funds, including temporarily raising interest rates to around 2% and enhancing customer service through personalized strategies [13][14]. - Some banks are offering promotional products with rates above 2% to attract new customers, while others are implementing pre-reminder mechanisms and tailored renewal plans for existing customers [16][17]. - The focus has shifted from merely selling products to deepening customer relationships and providing precise recommendations based on competitive analysis of deposit rates [17].

Core Viewpoint - The banking sector is experiencing a "New Year" deposit rush, with small and medium-sized banks facing pressure to attract deposits despite a decrease in the overall enthusiasm compared to previous years [2][5]. Group 1: Deposit Rate Adjustments - Several small and medium-sized banks have recently raised their fixed deposit rates, albeit by limited margins compared to previous years, reflecting a balance between managing funding costs and maintaining market competitiveness [2][4]. - For instance, the DeShang Village Bank in Henan increased its one-year and three-year fixed deposit rates from 1.50% and 1.70% to 1.55% and 1.73%, respectively [3]. - Other banks, such as the Jiangsu Bank and Shenyang Bank, have also introduced higher interest rate products, with some three-year fixed deposits offering rates as high as 1.90% [3][4]. Group 2: Marketing Strategies and Competitive Pressures - To attract deposits, some banks are employing promotional strategies, such as offering shopping vouchers for depositors, indicating a competitive environment among small banks [4]. - Analysts suggest that the recent rate increases by small banks are primarily short-term marketing tactics to meet year-end deposit targets, rather than indicative of a long-term trend [5]. Group 3: Large Banks' Strategies - Major state-owned banks have not followed suit in raising deposit rates but have adjusted the minimum deposit thresholds for their products, indicating a strategic shift towards customer relationship management [6][7]. - For example, the Industrial and Commercial Bank of China has set a minimum deposit of 1 million for certain high-yield products, while the Agricultural Bank of China has varied its minimum deposit requirements significantly across different products [6]. Group 4: Future Outlook - Industry experts predict that banks may continue to lower funding costs, with potential downward adjustments in deposit rates as net interest margins remain under pressure [8]. - The average cost of deposits may decrease by approximately 35 basis points in 2026, potentially improving net interest margins by 10 to 15 basis points, which could provide more room for future interest rate cuts by the central bank [8].

Core Viewpoint - The recent surge in deposit rates among small and medium-sized banks reflects a competitive landscape and the pressures of market dynamics, despite a general trend of declining interest rates in the banking sector [2][12]. Group 1: Deposit Rate Adjustments - Several small and medium-sized banks have recently raised their fixed deposit rates, albeit by limited margins compared to previous years, indicating a cautious approach to managing funding costs and market competitiveness [2][4]. - Specific examples include: - DeShang Village Bank in Henan raised its 1-year and 3-year fixed deposit rates from 1.50% and 1.70% to 1.55% and 1.73% respectively [4]. - Jiangsu Bank's new 3-year fixed deposit products offer rates of 1.85% and 1.90%, reflecting a competitive strategy to attract deposits [6]. - The overall trend shows that most banks increasing rates are smaller institutions, which are actively using promotional strategies to attract deposits [7]. Group 2: Market Dynamics and Strategies - Analysts suggest that the recent rate hikes by small banks are a response to year-end deposit targets and the need for liquidity, but these adjustments are seen as temporary marketing tactics rather than a long-term trend [8][12]. - Larger state-owned banks, while not increasing rates, are adjusting minimum deposit thresholds, indicating a shift towards maintaining customer relationships rather than competing on interest rates [10][12]. - The banking sector is facing dual pressures: the need to attract deposits while managing costs, leading to a potential future decrease in deposit rates as banks seek to stabilize their net interest margins [11][12]. Group 3: Regulatory and Compliance Considerations - Recent regulatory actions highlight the challenges faced by some banks in balancing growth and compliance, with penalties imposed for practices that violate operational standards [11]. - The trend of increasing deposit rates among smaller banks may be short-lived, as the overall market is expected to continue moving towards lower deposit rates in response to economic conditions [12][13].

Core Viewpoint - The current trend in the banking sector shows that while small and medium-sized banks are raising deposit rates to attract funds, the overall enthusiasm for deposit collection has decreased compared to previous years, reflecting a balance between managing funding costs and maintaining market competitiveness in the context of deepening interest rate marketization [1][8]. Group 1: Deposit Rate Adjustments - Several small and medium-sized banks have recently raised their fixed deposit rates, albeit by limited margins compared to previous years, indicating a cautious approach to managing funding costs [3][4]. - For instance, the DeShang Village Bank in Henan raised its one-year and three-year fixed deposit rates from 1.50% and 1.70% to 1.55% and 1.73%, respectively [3]. - The Yangling Rural Commercial Bank has unified its personal fixed deposit rates to a range of 1.1% to 1.6%, with three-year and five-year rates set at 1.6% [4]. Group 2: Competitive Landscape - The competitive landscape among banks is intensifying, particularly for small and medium-sized banks, which are under pressure to stabilize liabilities and attract deposits, leading to temporary increases in deposit rates [5][7]. - Major state-owned banks, while not increasing deposit rates, are adjusting the minimum deposit thresholds for their products, indicating a strategic shift towards customer relationship management [6][8]. - The Agricultural Bank of China has raised the minimum deposit for a three-year certificate to 5 million yuan, while still offering products with a lower threshold of 200,000 yuan [6]. Group 3: Future Trends - Analysts predict that banks will continue to lower funding costs due to pressure on net interest margins, suggesting that deposit rates may further decline in the future [8][9]. - The net interest margin for commercial banks has narrowed to 1.42%, with expectations that the average cost of deposits may decrease by approximately 35 basis points as high-interest deposits mature [9]. - The overall trend indicates that banks may adopt varied pricing strategies for deposits, balancing between lowering rates and adjusting minimum deposit requirements [8][9].