“From June 1, our bank’s five-year deposit rate will be lowered from 4% to 3.9%, and the three-year deposit rate will be lowered from 3.5% to 3.4%. It is not sure whether it will continue to be adjusted.” Dujiangyan Jindu Village Town Bank staff told China Securities Journal reporters.
Recently, a number of rural banks in Shanxi, Shandong, Sichuan, Guangdong, Jilin and other places have followed up and lowered their time deposit interest rates. Experts pointed out that this move will help rural banks reduce their debt costs and strengthen their debt cost control. Investors are advised to diversify their assets according to their own risk preferences, capital liquidity needs and other factors.
deposit rate cut
Recently, Shenzhen Luohu Lanhai Rural Bank, Dujiangyan Jindu Rural Bank, Daan Huimin Rural Bank, Jiaokou Rongdu Rural Bank, Heshun Guidu Rural Bank, Yibin Xingyi Rural Bank and many other banks have lowered the interest rates of some term deposits.
Shenzhen Luohu Lanhai Village Bank’s announcement shows that the bank will adjust the interest rate of time deposits with a period of one year or more from May 31. Specifically, the one-year, two-year, three-year, and five-year interest rates of time deposits (lump deposit and withdrawal) have been lowered from 2.25%, 2.85%, 3.50%, and 4.00% to 2.15%, 2.75%, 3.40%, and 3.40%, respectively. 3.90%.
“On May 15, we lowered the call deposit and agreement deposit interest rates. This time, the fixed deposit interest rate will be slightly lowered.” A staff member of a branch of Shenzhen Luohu Lanhai Village Bank told reporters that the adjusted deposit interest rate has no effect on newly deposited The deposit takes effect, and the time deposit deposited before the adjustment date is still executed at the quoted interest rate on the account opening date.
According to the announcement of Dujiangyan Jindu Rural Bank, the bank will adjust the implementation interest rate of RMB deposits from June 1, and the two-year, three-year, and five-year interest rates of time deposits (lump deposit and withdrawal) will be changed from 2.85%, 3.5%, and 4% respectively. % down to 2.8%, 3.4%, 3.9%.
Interest rates are still favorable
“The rate of reduction this time is not large. Compared with other banks, our bank’s deposit interest rate still has an advantage. If there is no large demand for money in recent years, it is recommended to buy 5-year deposit products. It is very cost-effective to realize an interest rate of 3.9% on the market.” A staff member of a branch of Dujiangyan Jindu Village Bank said.
In fact, some rural banks have lowered their deposit interest rates several times this year. Take Liaocheng Shanghai Rural Commercial Rural Bank as an example. On the basis of lowering the listed interest rate of RMB deposits on April 22, the bank lowered the agreed deposit rate from 1.50% to 1.35% on May 12, and the one-day and seven-day notices The deposit rate was lowered from 1.55% and 1.60% to 1.00% and 1.55% respectively. On May 26, the bank lowered the listed interest rate of RMB deposits again, and lowered the interest rate of three-year and five-year time deposits (lump deposit and withdrawal) from the previous 3.45% to 3.21%.
For a long time, rural banks have attracted depositors with higher deposit rates. Although the deposit interest rate has been lowered many times, overall, its deposit interest rate still has a clear advantage over state-owned banks and joint-stock banks. Taking Industrial and Commercial Bank of China as an example, on June 4, the two-year, three-year, and five-year interest rates of time deposits (lump deposit and withdrawal) displayed on the bank’s mobile APP were 2.15%, 2.6%, and 2.65%, respectively. Take Guangfa Bank, a joint-stock bank, as an example. On June 4, the two-year, three-year, and five-year fixed deposit interest rates displayed on the bank’s mobile app were 2.3%, 2.65%, and 2.7%, respectively.
Optimizing the structure of assets and liabilities
Dong Ximiao, chief researcher at China Merchants Union, said that lowering deposit rates will help banks reduce their debt costs. In the long run, the decline in the market risk-free interest rate is the general trend. In addition, the decline in medium and long-term deposit interest rates will help reduce the “spread” between short-term deposits and medium- and long-term deposits, help reduce arbitrage behavior, and make the maturity structure of bank deposits more reasonable.
In addition, in response to reducing costs on the bank’s liability side, the relevant person in charge of the financial department of Bank of Suzhou said a few days ago that the bank should continue to increase customer stickiness on the liability side and increase the contribution of settlement funds. Specifically, it includes expanding the scale of underwriting and custody business, gradually realizing the integrated effect of investment, underwriting, custody and funds, etc., and increasing the precipitation rate of low-interest funds; strengthening the expansion of basic accounts in the company’s lines, and firmly grasping customer settlement and salary payment , funds form internal circulation, etc.
In the context of falling interest rates, how should investors take care of their “money bags”? Weng Zichi, a senior investment consultant of Jufeng Investment Consulting, said that for medium and long-term stable investors, products such as bank wealth management with a longer closed period are better choices. From the perspective of asset allocation, the combination will be more reasonable. It is a good choice for investors to allocate assets proportionally among various products such as time deposits, bank wealth management, and bancassurance products.