"I had all my money ready and wanted to wait until Saturday to open my card and save my pen for five years on a regular basis. Who knows if the rate will be cut today, or a step late, it would have been good to have known that it would have gone two days ago. On the morning of May 5, Ms. Zhang, a citizen, called a branch of Bank of Dalian in Beijing and learned that the bank had just lowered the fixed deposit rate on the same day, and the five-year interest rate was dropped from 19% to 4.3%. The Beijing Youth Daily reporter learned that in addition to Dalian Bank, another "net red bank" Jiangsu Bank lowered the deposit interest rate this week, falling below 3.3% across the board. In the past two months, Bank of Jiangsu has attracted a large number of Jiangsu customers to deposit across cities because its interest rate in Shanghai is much higher than that in Jiangsu, and its popularity on social platforms has soared.
Since last year, domestic banks have set off several rounds of interest rate cuts in deposit rates. At present, the deposit interest rate of many national banks has entered the two-character era, and it is rare for the interest rate of local banks to exceed 2.3%. An investigation by a reporter from Beiqing News found that only a few local banks and foreign banks in the Beijing market can maintain the fixed deposit interest rate of more than three years at the level of 5.3% to 5%. Some experienced depositors say interest rates vary too much from bank to bank now that they have to shop around to save money.
Bank of Dalian and Bank of Jiangsu cut interest rates sharply this week
Since the fixed deposit interest rate is significantly higher than that of their peers, Bank of Jiangsu and Bank of Dalian were previously among the more popular banks on social platforms. Bank of Jiangsu, in particular, has lower interest rates in Jiangsu than in Shanghai, Beijing and Shenzhen. Since March, many Jiangsu customers have taken the high-speed train to Shanghai to save money, causing heated discussions.
"We just cut interest rates on Monday and now there is no 3.5% rate." On the morning of the 19th, the lobby manager of a branch of Jiangsu Bank told the Beiqing News reporter. Previously, Bank of Jiangsu's three-year and five-year fixed deposit rates in Beijing were both 3.5%, with a minimum deposit of 3,4 yuan. Now the latest interest rate is still the same for three and five years, but the minimum deposit amount is divided into three levels, and the maximum is only 5.2%. Specifically, if it is less than 8,5 yuan (excluded), the annual interest rate is 30.3%; 3.30% from 3,4 yuan (inclusive) to <>,<> yuan (excluded), and <>.<>% above <>,<> yuan (inclusive).
"I just opened the card, and before I could deposit it, it dropped. Just missed it. Netizen Xiaomi just opened an account in Jiangsu Bank last week, and wanted to wait for a wealth management to expire on Wednesday before depositing it, but received the news of interest rate cuts. She originally planned to save only 3,3 yuan, but now the annual interest rate has been reduced directly from 5.2% to 8.210%, which is 3 yuan less interest per year, and 630 yuan less in three years.
On the morning of the 19th, the Beiqing News reporter learned from a branch of Bank of Dalian in Beijing that, as reflected by Ms. Zhang, the bank did officially implement the latest fixed deposit rate on May 5. The five-year interest rate has been reduced from 19% to 4.3%, and the interest of 3,70 yuan deposit is 350 yuan less per year, 20 yuan less in five years, and if you deposit 7000,3 yuan, it will be 5,3 yuan less interest in five years; The three-year interest rate was reduced from 3.20% to 60.20%, 1200,<> yuan less interest a year is <> yuan less, <> years less <> yuan, <>,<> yuan saved for three years to earn <>,<> yuan less interest.
The interest rate of the same bank varies from city to city
In fact, not only Beijing, but also Bank of Jiangsu and Bank of Dalian have recently lowered interest rates in other cities.
Previously, Bank of Jiangsu's three-year fixed deposit interest rate in Jiangsu was 3.1%, while in Shanghai, Beijing, Shenzhen and other cities, it was as high as 3.5%. Therefore, many customers in Jiangsu specially take the train to Shanghai to deposit. The Beiqing News reporter learned that since May 5, the interest rate of the Bank of Jiangsu in Shanghai and Beijing has been lowered simultaneously, with the highest three-year and five-year interest rates being 15.3% and the lowest 4.2%, but Shenzhen's interest rate has not been adjusted for the time being.
On the afternoon of the 19th, the Beiqing News reporter called a branch of Jiangsu Bank in Shenzhen, and the staff said that the bank's three-year and five-year fixed deposit interest rates have not been adjusted temporarily, and the annual interest rate is still 1.3%.
Bank of Dalian did not only lower the fixed deposit rate in Beijing on the 19th. On the 18th, a number of Dalian Bank customers in Shanghai, Hunan, Jiangsu and other places said on social platforms that they received a reminder text message from the account manager in the morning: "Our bank will reduce the deposit interest rate from tomorrow, the 3-year and 5-year term is 3.3% (from 1,<>), the interest rate remains unchanged today, and I want to buy as soon as possible!" ”
Regarding the difference in interest rates between different cities, Bank of Jiangsu recently responded that the bank has comprehensively considered cost factors, regional factors, customer group factors and market competition factors in deposit pricing, and the deposit interest rate level of Shanghai branches is generally consistent with the pricing level of commercial banks in different cities, and is in line with the consistent behavior of the national banking industry driven by the self-discipline mechanism. For future plans, the bank said that it will continue to actively and dynamically adjust the deposit interest rate reasonably in combination with the interbank deposit interest rate situation and the bank's situation.
Dong Ximiao, chief researcher of CMF Finance, pointed out that the difference in deposit interest rates of the same bank in different regions is mainly caused by three reasons. First, the deposit increase and upper limit agreed upon by the market interest rate self-regulatory pricing mechanism in different regions may be different; Second, the relationship between supply and demand in the deposit market in different regions is different, and customers' investment preferences and savings habits are different, which affects the pricing of deposit interest rates. Third, different branches of the same bank have different asset and liability situations and market competition strategies, and the demand and pricing for deposits are naturally not completely consistent.
The fixed deposit rate enters a downward channel, and the inventory shop is around
It is understood that since April, many banks across the country have announced a reduction in the listed interest rate of RMB deposits, with the overall reduction ranging from 4 to 10 basis points. After several rounds of adjustment, the listing interest rate of three- and five-year deposits of most large state-owned banks and joint-stock banks has been reduced to less than 45%. However, there are also some banks in the market that have a fixed deposit interest rate of more than 3.3%, which is significantly higher than that of their peers.
Ms. Li, a citizen who has only been accustomed to saving and managing money for many years, believes that deposits within 50,3 yuan have deposit insurance coverage no matter which bank, and under this premise, it is best for everyone to shop around and go to a bank with a higher interest rate to deposit money. According to her understanding, there are only a few local banks and foreign banks left in the Beijing market, and there are still deposit interest rates of more than 5.4%, or even <>%, and she believes that "it should be less and less in the future."
According to the clues provided by Ms. Li, the Beiqing News reporter called Xiamen International Bank, Bank of Nanjing and Hana Bank, and found that the three-year and five-year deposit interest rates of these three banks are indeed higher.
A staff member of a branch of Xiamen International Bank said that the three-year interest rate of the bank's deposit of 1,3 yuan is still 5.1%; The five-year interest rate is divided into several levels, 3.8% of the deposit starting at 10,3 yuan; 85.100% of the minimum deposit of 3,90 yuan; 300.3% of the minimum deposit of 95 million yuan; 600.4% of the minimum deposit of <> million yuan; <>% of the minimum deposit of <> million.
Bank of Nanjing staff said that the bank had lowered the interest rate once not long ago, but now the five-year fixed deposit interest rate starting at 1,3 yuan is still 5.30%; The three-year fixed deposit interest rate starting at 3,5 yuan is also <>.<>%.
Although Hana Bank is a foreign bank, its RMB fixed deposit interest rate is significantly higher than that of Chinese banks. At present, the annual interest rate of the bank's three-year large-sum certificate of deposit is 3.45%, and the five-year period is 3.95%. For fixed deposits of more than 5,3 yuan, the three-year term is 40.3%, and the five-year period is 9.<>%.
Where will resident deposits go after interest rates fall?
As deposit rates fall, residents' willingness to save continues to decline. Data released by the central bank a few days ago showed that resident deposits, which have continued to increase year-on-year for 13 consecutive months, fell off a cliff in April. In April, RMB deposits fell by 4.4 billion yuan, down 4609.5524 billion yuan from the same period last year. Among them, household deposits decreased by 1.2 trillion yuan, a year-on-year decrease of 4968.<> billion yuan.
Dong Ximiao pointed out that in 2023, with the macroeconomic recovery and the recovery of effective financing demand, the demand for funds in the banking system will increase, and the deposit interest rate is expected to remain basically stable. However, in the long run, the decline in the market's risk-free interest rate is the general trend. For individual residents, if there are more medium- and long-term deposits in asset allocation, the yield may decline. Residents should balance the relationship between risk and return, if they want to obtain higher returns, they must bear higher risks, and if they do not want to take higher risks, they should accept lower returns. If you pursue stable returns, you can appropriately allocate cash management wealth management products and monetary funds in addition to deposits.
In fact, bank wealth management products, which caused many investors to "leave the market" after sharp fluctuations last year, have shown signs of recovery. According to the data of Puyi Standard, the average annualized returns of open-ended fixed income wealth management products (excluding cash management products) and closed-end fixed income wealth management products of wealth management subsidiaries in April were 4.4% and 43.5% respectively in the past month, which was significantly higher than the interest rate of one-year time deposits, and the size of the wealth management market in April increased by 35.4% month-on-month to 5.14 trillion yuan.
Tianfeng Securities Research Report believes that benefiting from the strengthening of the bond market, the performance of the wealth management market has gradually improved this year. The net breakdown rate of wealth management products continued to decline from a peak of 2022.12% in December 29 to 2.2023% as at May 5, 12, and the decline in deposit rates during this period made wealth management products increasingly attractive to residents. From the perspective of wealth management scale in May, with the net breakdown rate falling further, residents continue to increase the allocation of wealth management products.
Xue Hongyan, vice president of Star Map Financial Research Institute, believes that at this stage, residents' consumer confidence and investment confidence have not fully recovered, risk appetite is low, in the short term, deposit products lack of financial alternatives that investors can trust, and the reduction of deposit interest rates also makes prepayment more cost-effective, or will trigger a new round of prepayment boom. In the medium term, the recovery of the stock market and the increase in the earning effect will become a catalyst for deposit moving, triggering the transfer of deposits to public funds, fixed income + wealth management and other rights-containing assets, which in turn will further drive the stock market to pick up, produce a positive feedback effect, and restart the trend of residents' deposits flowing to the capital market.
Text/Reporter Cheng Jie (Source: Beijing Youth Daily)