Guangzhou Daily News (All-media reporter Wang Chuhan) On June 6, it was reported that the state-owned bank was about to cut the interest rate of time deposits again. The Guangzhou Daily all-media reporter learned that banks have received relevant notices.

"Just received the latest notice that the interest rate of time deposit products will be reduced in the near future." A relevant person of a state-owned bank in Guangzhou told reporters. Another staff member of a state-owned bank in Guangdong also said that he had received relevant notices, but the specific adjustment plan had not yet been determined.

A relevant person from a state-owned bank in Guangzhou also said: "I have heard relevant news, but I have not received official documents. The staff member told reporters that the annual interest rate of three-year RMB time deposit products with deposits of more than 5,3 yuan is 0.2%, but it is estimated that it is only 85.15% after this round of reduction, a decrease of <>BP.

"The inevitable trend of lowering bank deposit interest rates or marketization of interest rates is in line with market laws. Falling deposit rates help control banks' deposit costs and avoid idle arbitrage and balance sheet inflation. From a market perspective, this can reduce the cost of trading in financial markets and speed up the flow of funds, thereby improving the efficiency of capital and market operations. A banker reminded that for investors, a decline in deposit interest rates means a decrease in interest income, and it is no longer feasible to rely solely on deposits to preserve assets. For prudent investors, you can choose low-risk products such as monetary funds, cash management wealth management, and short-term debt funds. If there is money that is not used in the medium and long term, you can also appropriately allocate annuity insurance and increased whole life insurance to lock in long-term income in advance.

In fact, since the establishment of the interest rate market-oriented mechanism, the deposit interest rate has undergone several rounds of reduction. Recently, many village and town banks in Sichuan, Jilin, Inner Mongolia, Shandong and other places announced that they will reduce the interest rates of some term time deposits from June, and the decline is mostly 6BP~5BP.

In May this year, the relevant departments issued a notice to adjust the upper limit of bank call deposits and agreed deposit interest rates from May 5, 2023. Among them, the large state-owned banks (especially the four major banks of industry, agriculture, China and construction) implement the benchmark interest rate plus point of no more than 5 BP, and other financial institutions implement the benchmark interest rate plus point of no more than 15 BP.

As early as April last year, the People's Bank of China established a market-oriented adjustment mechanism for deposit interest rates under the guidance of the interest rate self-discipline mechanism, and the member banks of the self-discipline mechanism reasonably adjusted the deposit interest rate level by referring to the bond market interest rate represented by the 4-year treasury bond yield and the loan market interest rate represented by the 10-year LPR.

In September last year, state-owned banks lowered their listing rates, and the interest rates on time deposits of all maturities have been lowered to less than 9%. Among them, the 3-year fixed deposit has been lowered to 3.2% and the 6-year fixed deposit has been lowered to 5.2%. Since then, some stock banks have successively lowered the deposit listing interest rate, and in the following months, a number of city commercial banks have also lowered the deposit listing interest rate.