Large-denomination certificates of deposit are increasingly sought after.
Recently, a reporter from Beijing Business Daily found that after several cuts, the annual interest rate of long-term large-denomination certificates of deposit in many banks has dropped to about 3%, but investors’ enthusiasm for subscription has not diminished. Normally, compared with demand deposits, investors are more and more inclined to time deposits with a term.
According to analysts, next, banks should reasonably control fixed-term products, maintain the normal order of competition in the deposit market, increase the proportion of demand deposits, and meet the market's diversified financial service needs.
Need to fight hand speed to buy
After the implementation of the "New Asset Management Regulations", capital-guaranteed wealth management products have been cleared and withdrawn from the stage of history. As one of the channels for stable investment, large-denomination certificates of deposit have gradually become popular in the market and are also loved by investors with different risk preferences.
Recently, the capital market has fluctuated significantly. Yang Yang (pseudonym) decided to invest a sum of money in relatively stable large-denomination certificates of deposit after multiple evaluations. In the case of "one order is hard to find", not only do you need to queue up to make an appointment, but you may not be able to buy it with money.
A large-value certificate of deposit is a large-value deposit certificate issued by a bank to an individual or institution. Usually, an individual starts investing 200,000 yuan, and the term ranges from 3 months to 3 years. Like Yang Yang, investors are buying When you have a large certificate of deposit, you will feel that the amount is limited.
During the investigation, a reporter from Beijing Business Daily found that many banks are currently short on long-term large-denomination certificates of deposit. In addition to being sold out and offline, there are bank regulations that require appointments and capital verification when purchasing large-denomination certificates of deposit.
"The large-denomination certificate of deposit purchased starting at 200,000 yuan has a 3-year annual interest rate of 3.2%, and it will be offline immediately." A bank account manager released the recommendation information for large-denomination certificates of deposit. A reporter from Beijing Business Daily noticed that this is a joint-stock bank. The large-denomination certificate of deposit launched has a 3-year maturity annual interest rate of 3.2%.
The account manager said, "This is the long-term large-denomination certificate of deposit with the highest annual interest rate in our bank at present. It supports early withdrawal and transfer of deposit certificates, and it can be bought and cherished. The follow-up launch time is to be determined."
An account manager of a large state-owned bank also said, "At present, our bank has no quota for large deposit certificates, and the quota is only open on Wednesdays. Customers need to make an appointment in advance and come to the counter to verify the capital in advance."
In response to the phenomenon that buying large-denomination certificates of deposit has to be done quickly, a customer manager of a city commercial bank said, "It is a high-probability event that deposit interest rates will drop in the future, so there are currently more customers who buy large-denomination certificates of deposit and time deposits to lock in income. Our bank only The large-denomination certificate of deposit quota was opened at 9 am on Thursday, but there has been no quota recently, and it is difficult to grab large-denomination certificates of deposit now.”
Liu Yinping, an analyst at Rong 360 Digital Technology Research Institute, said in an interview with a reporter from Beijing Business Daily that the tightening of large-denomination certificates of deposit quotas may be due to the following reasons: First, near the end of the year, some banks have tight quotas for large-denomination certificates of deposits, and the number of issuances and quotas have declined ; Second, the cost of large-value certificates of deposit is higher than that of ordinary fixed deposits. From the perspective of cost reduction, some banks will control the issuance volume and price of high-cost deposits; third, as deposit interest rates fall, depositors tend to buy long-term deposits To lock in the current relatively high interest rate, long-term large-denomination certificates of deposit are more popular.
Interest rates still have room to fall
In addition to making an appointment through the offline counter, large-value certificates of deposit can also be purchased online directly through the mobile banking app.
A reporter from Beijing Business Daily sorted out and found that the current annual interest rate of large state-owned banks' three-year large-denomination certificates of deposit is generally around 3%, and the quota is relatively tight.
Taking Industrial and Commercial Bank of China as an example, the bank’s mobile banking app large-value certificate of deposit area shows investors a variety of large-value certificates of deposit, with an annual interest rate of about 1.6%-3.1%, and the deposit period is divided into 1 month, 3 months, and 6 months. Months, 1 year, 2 years, 3 years, the deposit threshold ranges from 200,000 to 2 million yuan.
Among them, many products are exclusive to new customers, and are only sold to new customers within 6 months from the date of becoming an ICBC customer.
The annual interest rate of large-denomination certificates of deposit in joint-stock banks is generally around 1.8%-3.3%. Some banks sell insufficient types of large-denomination certificates of deposit. For example, China Guangfa Bank only sells two types of large-denomination certificates of deposit. The annual interest rate for the 3-year deposit period is 3.3%; the other model starts at 1 million yuan, and the annual interest rate for the 3-year deposit period is also 3.3%.
There are no 3-year products on sale in the list of Minsheng Bank's large-denomination certificates of deposit.
During the investigation, several account managers revealed that there is still room for a reduction in interest rates on large certificates of deposit in the future.
A customer manager of a city commercial bank said, "It took less than 3 years for the annual interest rate of long-term large-denomination certificates of deposit to fall from 4% to 3%. The future decline in the interest rate of large-denomination certificates of deposit is a high probability event."
Another customer manager of a joint-stock bank also held the same view. She said, "Deposit interest rates may further drop in the future. If you want to lock in profits, it is recommended to plan early. Large-denomination certificates of deposit are a better choice."
In April this year, the market interest rate pricing self-discipline mechanism encouraged small and medium-sized banks to lower the upper limit of deposit interest rates. After bank fixed deposit interest rates were cut successively in September, interest rates on large certificates of deposit dropped again.
Today, the interest rate on long-term large-denomination certificates of deposits of some banks has dropped below 3%.
In this regard, Zhou Maohua, a macro researcher of the Financial Market Department of Everbright Bank, pointed out that the future trend of deposit interest rates is also related to the macro economy, policies, market supply and demand, and the operating conditions of various banks.
Next, when banks adjust deposit rates according to their own conditions, they will be more inclined to adjust the interest rates of long-term limited deposits, large certificates of deposit, and structured deposits first.
Liu Yinping predicts that since the beginning of this year, the deposit interest rates of large-denomination certificates of deposit have shown a downward trend, and the net interest margin of banks has continued to narrow. Reducing the volume and price of high-cost deposits is one of the strategies for many banks to optimize their deposit structure and reduce deposit costs. Interest rates on large certificates of deposit may further decline slightly.
Increase the proportion of demand deposits
Interest rates are falling, but large certificates of deposit are "difficult to find". All signs show that compared with demand deposits, investors are more and more inclined to fixed-term deposits with a term. The time has come.
"Generally speaking, an increase in the proportion of fixed-term bank deposits will significantly increase the comprehensive liability cost of deposits. This may be related to the overall macroeconomic and market fluctuations, and does not mean a long-term trend." In Zhou Maohua's view, banks should reasonably control the fixed-term products to maintain the normal order of competition in the deposit market and increase the proportion of demand deposits; digital transformation improves the efficiency of financial services; innovative financial products meet the market’s diversified financial service needs to promote the increase in demand deposits; actively promote the development of intermediary business to bring banks As many checking deposits as possible.
At the 2022 mid-term performance conference, many bank executives also said that the next step is to increase the proportion of demand deposits.
For example, Liu Jianjun, president of the Postal Savings Bank of China, said that in terms of liabilities, it is necessary to continue to reduce the cost of liabilities, especially to increase the proportion of demand deposits, increase the traction of wealth management assessment, and increase the proportion of demand deposits through wealth management. Medium and long-term deposit scale and interest rate.
However, increasing the proportion of demand deposits is a long-term and arduous task.
As Liu Yinping said, large and medium-sized banks have made an early deployment in this area, focusing on the long-term flow of water, which is conducive to continuous operation, such as increasing the proportion of housing loans, salary cards, merchant settlement, and resident payment, and supporting the automatic repayment function of credit cards, attracting ETC. , electronic social security card customers, etc., will all help to increase the proportion of demand deposits.
Some banks also cooperate with e-commerce platforms. There are certain preferential measures for choosing to pay with the bank’s savings card. The bank manages customers in different levels, and there are corresponding rewards for assets reaching different sizes, such as giving gas cards, coffee coupons, points, and lucky draws.
Beijing Business Daily reporter Song Yitong