Core Insights - Deposit rates continue to decline, with average rates for various terms entering the "1 era" in 2023 [1] - The average rates for different deposit terms are as follows: 3-month at 0.944%, 6-month at 1.147%, 1-year at 1.277%, 2-year at 1.367%, 3-year at 1.688%, and 5-year at 1.519% [1] - There is a notable inversion in rates, where the 3-year average rate is higher than the 5-year average rate, indicating a shift in depositor behavior [1] Deposit Rate Trends - The downward trend in deposit rates has been consistent throughout the year, with long-term deposit rates being particularly affected [1] - The inversion of rates between the 3-year and 5-year terms highlights a significant change in the banking sector's approach to deposit products [1] Bank Strategies - Banks are lowering medium to long-term deposit rates to optimize their liability structure and manage rising costs associated with fixed-term deposits [1] - There is a strong willingness among depositors to maintain long-term deposits, which influences banks' strategies in adjusting rates [1]

Group 1 - The People's Bank of China conducted a 138.2 billion yuan 7-day reverse repurchase operation at an interest rate of 1.40%, maintaining the previous level, resulting in a net injection of 94.7 billion yuan after 43.5 billion yuan of reverse repos matured on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) showed slight declines in the 7-day and 14-day tenors, with the 7-day Shibor down by 0.40 basis points to 1.4220% and the 14-day Shibor down by 5.20 basis points to 1.4520% [1][2] - The overnight Shibor increased by 0.10 basis points to 1.3180% [2] Group 2 - In the interbank pledged repo market, short-term rates showed minor fluctuations, with DR001 and R001 weighted average rates rising by 0.3 basis points and 0.6 basis points, respectively, while DR007 and R007 rates had mixed movements [5] - The total transaction volume for DR001 decreased by 108.4 billion yuan, while DR007 saw a decrease of 216 billion yuan [5] - The overall funding environment was balanced and slightly loose, with overnight rates showing a slight decline throughout the day [12]

Group 1 - The phenomenon of 5-year deposit rates being lower than 3-year rates is observed, indicating a significant shift in bank deposit interest rates [3][5] - As of March 2025, the average interest rates for various deposit terms are as follows: 3-month at 1.249%, 6-month at 1.449%, 1-year at 1.566%, 2-year at 1.666%, 3-year at 2.042%, and 5-year at 1.883%, showing a widening gap between 3-year and 5-year rates [3][4] - The decline in long-term deposit rates is attributed to banks' strategies to optimize their liability structure in response to rising costs from fixed-term deposits [5][7] Group 2 - The current economic environment shows strong deposit willingness among savers, while loan demand remains weak, leading to a compression of banks' net interest margins [7][9] - Banks are adopting a "short-term high rate" strategy to encourage customers to shift funds from long-term to short-term deposits, thereby improving their funding structure and net interest margin [7][10] - Banks anticipate further declines in interest rates, prompting them to implement inverted interest rates to mitigate risks associated with future rate drops [9][10] Group 3 - The inverted interest rate structure allows banks to reduce the absorption of long-term deposits, avoiding high funding costs in a declining interest rate environment [10] - By increasing the proportion of short-term deposits, banks can enhance liquidity and allocate funds to higher-yielding, more liquid asset projects [10] - The inverted rates may also stimulate consumer spending as depositors reconsider their investment strategies, potentially reallocating funds from savings to consumption [10][12] Group 4 - Individuals are encouraged to reassess their asset allocation strategies in light of the inverted interest rate phenomenon, moving away from traditional reliance on bank deposits for stable returns [12] - Diversification into various investment channels, such as stocks, funds, and fixed-income products, is recommended to achieve better returns while managing risks [12] - A proactive approach to asset management, incorporating liquidity management, yield stratification, and risk hedging, is essential in a low-interest-rate environment [12]

Group 1 - The overall trend indicates that bank deposit rates are rapidly entering the "1 era," with deposits offering rates above 2% becoming scarce [1] - As of March 2025, the average deposit rates for various terms are as follows: 3-month at 1.249%, 6-month at 1.449%, 1-year at 1.566%, 2-year at 1.666%, 3-year at 2.042%, and 5-year at 1.883% [1] - There is a notable decline in the average deposit rates for 3-year and 5-year terms, while short-term rates have seen slight increases [1] Group 2 - Banks are reducing long-term deposit rates to mitigate the risk of high-interest liabilities during future interest rate declines, indicating an expectation of continued market rate decreases [2] - Since February 2025, bank deposit rates have generally declined, influenced by central bank policies aimed at curbing high-interest deposit acquisition [2] - The trend suggests that there is still room for further reductions in bank deposit rates due to multiple factors, including low market rates and the need for banks to control liability costs [2] Group 3 - Market interest rates are expected to remain on a downward trend, with potential further declines in deposit rates [3] - Individuals are advised to consider their risk tolerance and investment needs when allocating assets, with suggestions to diversify into cash management products, money market funds, and government bonds for stable returns [3] - For those with higher risk tolerance, it is recommended to consider increasing allocations to stocks, equity funds, and gold [3]

Core Viewpoint - The deposit interest rates are rapidly entering the "1.0" era, with a notable widening of the interest rate gap between 3-year and 5-year deposits [1] Summary by Relevant Categories Deposit Interest Rates - As of March 2025, the average interest rates for various deposit terms are as follows: 3-month at 1.249%, 6-month at 1.449%, 1-year at 1.566%, 2-year at 1.666%, 3-year at 2.042%, and 5-year at 1.883% [1] Interest Rate Spread - The interest rate spread between 3-year and 5-year deposits has further increased, indicating a growing disparity in deposit rates for these terms [1]

Core Viewpoint - The average deposit rates for various terms are declining, with a notable increase in the spread between short-term and long-term deposit rates, indicating a shift in banks' strategies to optimize their liability structures [1][4][9]. Deposit Rate Trends - As of March 2025, the average rates for different deposit terms are as follows: 3-month at 1.249%, 6-month at 1.449%, 1-year at 1.566%, 2-year at 1.666%, 3-year at 2.042%, and 5-year at 1.883% [1][3]. - The month-on-month changes show slight increases in short-term rates (3-month, 6-month, 1-year, and 2-year) while the 3-year and 5-year rates have decreased significantly [4]. Long-term vs Short-term Deposits - There is a strong willingness among depositors to store long-term deposits, leading banks to lower long-term deposit rates to manage the risks associated with high-interest liabilities [4][8]. - Analysts suggest that banks are adopting a "short-term pressure long-term" strategy to guide customers towards shorter-term deposits, reflecting a proactive approach to managing interest rate risks [4][5]. Large Certificate of Deposit (CD) Trends - The average rates for large CDs have also shown a downward trend, with the 3-month rate at 1.386%, 6-month at 1.610%, 1-year at 1.719%, 2-year at 1.867%, 3-year at 2.197%, and 5-year at 2.038% [5][6]. - The decline in large CD rates has led to a situation where the rates for 3-year and 5-year CDs are inverted, indicating a market shift [5][6]. Market Dynamics - The narrowing interest rate spread between large CDs and regular term deposits has resulted in decreased sales of large CDs, as customers find little incentive to choose them over regular deposits [7]. - Factors contributing to the decline in large CD rates include the need for banks to optimize their liability structures, the central bank's rate cuts, and a relatively relaxed market liquidity environment [7]. Structural Deposit Trends - The average term for structured deposits is 89 days, with a slight increase in the average expected yield to 1.96% [8]. - Different types of banks show varying average terms and yields for structured deposits, with state-owned banks having the shortest average term [8]. Future Outlook - Analysts predict that deposit rates are likely to continue declining due to multiple factors, including market expectations, policy rate adjustments, and the need for banks to control funding costs [9].