Three-year fixed deposit interest rate up to 1.9%! During the Spring Festival, state-owned banks hold steady while small and medium-sized banks are fiercely competing.

This article is sourced from: Times Weekly Report Author: Li Qiannan, Lu Yongzhi

Source: TuChong Creative

At the beginning of the new year, during the peak period of year-end bonus distribution and capital recovery, people who have been busy all year are planning how to invest and strategize their asset allocation for the new year. For banks, “deposit gathering” has become a key task at present.

During the Spring Festival, Times Weekly reporters visited branches of the five major banks, as well as some joint-stock banks and city commercial banks, and found clear differentiation in deposit gathering: the five major banks “remain steady,” with no adjustments to deposit interest rates and no special deposit campaigns; while joint-stock banks and city commercial banks have maintained their usual advantages in interest rates, with fixed-term deposit rates generally higher than those of the five major banks, and they launched various deposit promotion activities during the Spring Festival.

Additionally, Times Weekly reporters also observed that banks are undergoing a transformation from “dominating deposit gathering” to “asset allocation.” For investors with different risk preferences, capital strengths, occupational backgrounds, and return expectations, financial managers need to precisely match investment products. The focus of business also varies among banks.

The five major banks focus on asset management scale, while joint-stock and city commercial banks are actively gathering deposits

During the Spring Festival, the five major banks kept their deposit interest rates unchanged, strategically abandoning high-interest deposit campaigns, shrinking the spread between deposits and loans, and shifting towards activities that enhance assets through points or cash discounts. Customers who meet certain thresholds in deposits, wealth management, and funds can receive rewards.

According to on-site visits by Times Weekly reporters during the Spring Festival, the deposit interest rates of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank remained unchanged, with one-year, two-year, and three-year fixed deposit rates at 1.1%, 1.2%, and 1.55%, respectively. In contrast, Bank of Communications offers higher fixed deposit rates: 1.3%, 1.4%, and 1.65% for one-year, two-year, and three-year terms.

An ICBC wealth manager told Times Weekly: “ICBC did not have any special deposit campaigns or promotions during the Spring Festival. They distributed 福字 (Fu characters) and couplets to some deposit customers as a form of festive gift and to add a holiday atmosphere.” Times Weekly also noted that other state-owned major banks did not have special deposit gathering activities.

A customer of Bank of China said that most of her deposits are with the five major banks because of their strong background, operational strength, and good customer base. She prefers to keep her funds in large banks for greater security. However, her children tend to prefer joint-stock banks when choosing banks.

A wealth manager from Bank of China told Times Weekly: “Bank of China is promoting a third-generation social security card that offers discounts and cash rewards. The third-generation social security card functions as a bank card, and there are gifts for those who apply for it at Bank of China. Once activated, it becomes a type-1 card, replacing the previous social security card.” The manager also revealed that among many cities, Beijing was relatively late in linking the third-generation social security card with banks.

Times Weekly learned that China Construction Bank also promotes activities offering discounts and cash rewards for applying for the third-generation social security card, with the amount of discounts generally between 70 and 150 yuan. A lobby manager at Bank of Communications said that typically, wealth managers encourage customers to use the discount for mobile banking top-ups; if customers have other intentions, they can also exchange the discount for goods.

In stark contrast to the five major banks, during the Spring Festival, joint-stock banks, city commercial banks, and rural commercial banks are actively promoting deposit campaigns, some of which are extensions of the “Opening Red” campaigns. These banks’ fixed deposit rates are generally higher than those of the five major banks.

Times Weekly learned from Industrial Bank that its “Fuyun Gold” RMB fixed deposits for one, two, and three years have rates of 1.30%, 1.40%, and 1.75%. A lobby manager said: “Industrial Bank’s deposit rates are higher than the five major banks. If you want to open a fixed deposit, you can contact a branch wealth manager or handle it directly via mobile banking.”

In the first quarter of 2026, Industrial Bank launched the “Asset Enhancement Speed Up” campaign, which includes two activities. In the basic rewards of Activity One, increasing deposits by 10,000 yuan earns 9.9 Jingxi beans or 10,000 gold beans; increasing by 100,000 yuan earns 29.9 Jingxi beans or 25,000 gold beans; increasing by 300,000 yuan earns 59.9 Jingxi beans or 45,000 gold beans. Achieving these levels and maintaining them for three days entitles the customer to the rewards. Activity One also includes advanced rewards for deposit increases between 100,000 and 4 million yuan, which require maintaining the level for 90 days.

Activity Two offers benefits for new diamond-tier customers, with deposit increase levels of below 1 million, 1-3 million, 3-6 million, and above 6 million yuan, earning between 1,288 and 3,888 Jingxi beans, and 1 million to 3 million gold beans.

Additionally, Bohai Bank promotes the slogan “Fixed deposits, steady and secure,” with slightly higher fixed deposit rates than Industrial Bank. For a three-year fixed deposit with a minimum of 10,000 yuan, the rate is 1.85%; for deposits of 100,000 yuan or more, the rate is 1.90%, approaching 2.0%.

In city commercial banks, Nanjing Bank and Hangzhou Bank offer fixed deposit rates of 1.5%, 1.6%, and 1.9% for one, two, and three years, respectively, higher than those of the five major and joint-stock banks. During the Spring Festival, Nanjing Bank offers small gifts for new deposits over 1,000 yuan; Hangzhou Bank conducts lottery activities for new customers. These activities are mostly continuations of “Opening Red” or early-year campaigns.

A customer of a city commercial bank told Times Weekly: “I keep my deposits in the five major banks for stability, but if I want higher interest income, I would choose city or joint-stock banks. It’s a matter of choice—depends on what I value most.”

Financial commentator Guo Shiliang told Times Weekly: “During the Spring Festival, deposit gathering shows clear differentiation. State-owned major banks experience limited deposit outflows and face less pressure, maintaining stable deposit interest rates before the holiday. Meanwhile, joint-stock and smaller banks face greater deposit pressure and use deposit campaigns to increase their savings scale.”

From “dominating deposit gathering” to “asset allocation”

Amid the deposit competition, many banks are undergoing a profound shift from “dominating deposit gathering” to “asset allocation.” This change is driven by the narrowing interest rate spreads caused by marketization and the increasingly diversified wealth management needs of residents.

After shifting to asset allocation, financial managers provide professional asset allocation plans, investing funds across wealth management, insurance, funds, government bonds, and savings products, offering clients suitable financial solutions, optimizing asset structures, and enhancing overall returns to achieve wealth appreciation.

Traditional deposit-gathering models focus on liabilities, aiming to increase deposit volume; whereas asset allocation models are client-centered, offering comprehensive financial solutions based on risk and return preferences, including wealth management, insurance, and funds. Banks thus shift from mere “credit intermediaries” to “financial service consultants.”

Times Weekly found that banks have different focuses in asset allocation. Most investors are risk-averse, seeking stability.

A branch manager at China Construction Bank told Times Weekly: “Currently, wealth management products do not guarantee principal. If customers buy these products, they should be prepared for potential capital loss. For safer options, customers can consider bank insurance products, which are safe and have principal and interest guarantees. In a declining interest rate environment, insurance products can lock in a fixed rate for life, effectively countering reinvestment risk, and also serve as a form of forced savings and future planning.”

Another wealth manager from China Construction Bank said: “For conservative investments, products with risk levels R1 or R2 are suitable. The bank offers products with yields of 2.3%-2.4% over two years. Savings-type insurance can also be considered. For slightly higher risk, bond funds or mixed funds are options.”

“Avoid principal risk but want steady investment? R1 or R2 risk-level wealth management products are suitable,” said a China Bank wealth manager. The bank’s low-risk products have interest rates between 1% and 1.3%, with some reaching 2%-3%, often linked to fixed income plus securities. Those with interest rates above 3% tend to carry higher risks and require some risk tolerance.

A wealth manager at Bank of Communications said: “If you want a conservative approach, fixed deposits are suitable. Bank of Communications’ fixed deposit rates are among the highest among the five major banks, offering more returns on stable investments. Also, wealth management products with yields between 2.3% and 2.8% are worth considering.”

An ICBC wealth manager told Times Weekly: “For steady returns, young people can consider lifelong insurance products, while older clients might prefer annuity products. Lifelong insurance locks in long-term rates and hedges against downward risks, helping asset growth; annuities convert a lump sum into a stable, lifelong cash flow, avoiding savings erosion in old age.”

A wealth manager from Nanjing Bank explained: “For conservative investments, short-term flexible pure fixed-income products are good options. These are like a ‘cash wallet,’ offering higher yields than savings accounts, with quick redemption options for emergencies. Medium- and low-risk wealth management products are also suitable.”

Guo Shiliang noted that amid the deposit war, more banks are actively transforming from “dominating deposit gathering” to “asset allocation.” Focusing on asset allocation helps banks develop new profit channels and competitiveness. Their asset management capabilities improve significantly, asset quality is enhanced, and deposit gathering is indirectly achieved.

Overall, the shift from “dominating deposit gathering” to “asset allocation” encourages banks to focus more on customer experience and long-term value, helping clients preserve and grow wealth through precise asset allocation, expanding intermediary business income, reducing capital consumption, and promoting high-quality, sustainable banking development.