Spring Festival Deposit Gathering Divergence: State-Owned Major Banks Prioritize Stability, Small and Medium Banks Compete with High Interest Rates to Attract Customers and Accelerate Transformation

At the start of the new year, with the peak of year-end bonus distributions and capital inflows, major banks are actively planning their asset allocation and deposit gathering strategies for the year. A visit to several bank branches revealed that state-owned large banks and joint-stock banks, city commercial banks, are showing clear differences in their deposit-raising tactics, while the banking industry as a whole is accelerating its shift from “deposit gathering as the main focus” to “asset allocation” models.

In the state-owned large bank sector, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank maintained stable deposit rates during the Spring Festival period, with one-year, two-year, and three-year fixed deposit rates at 1.1%, 1.2%, and 1.55%, respectively. Bank of Communications offered slightly higher rates than the other four, at 1.3%, 1.4%, and 1.65% for the same terms, but did not launch any special deposit promotion activities. An ICBC financial manager stated, “There are no special offers this Spring Festival, only some holiday gifts like 福字 couplets for select customers.” Bank of China attracted customers by offering 70-150 yuan discounts when applying for the third-generation social security card. China Construction Bank also launched similar activities, but the limits vary by bank.

In stark contrast to the cautious strategies of state-owned banks, joint-stock banks and city commercial banks are more active in the deposit market. Industrial Bank’s “Fuyun Gold” fixed deposit rates reach 1.3%, 1.4%, and 1.75%, and they have introduced the “Asset Enhancement Speed Up” campaign: customers who increase their assets by 10,000 yuan can earn 9.9 Jingxi beans; a 300,000 yuan increase can earn 45,000 gold beans. After meeting the target, customers need to maintain the increase for three days to receive rewards. Bohai Bank’s three-year fixed deposit rate can go up to 1.9%, with higher rates available for customers with a minimum deposit of 100,000 yuan. City commercial banks like Nanjing Bank and Hangzhou Bank offer one-year rates of 1.5% and 1.6%, and three-year rates of 1.9%, with activities such as new customer lotteries and small gift giveaways.

This differentiation reflects the varying operational pressures faced by different types of banks. Financial commentator Guo Shiliang pointed out, “State-owned large banks have a strong customer base and stable deposits, so their need to adjust rates before the Spring Festival is low; whereas joint-stock and small to medium-sized banks need to attract depositors through rate discounts and promotional activities to cope with capital pressures.”

Alongside this deposit-raising divergence, the banking industry is undergoing a deeper transformation. The narrowing interest rate spread caused by market-based interest rate reforms, combined with diversified household wealth management needs, is pushing banks to shift from simply pursuing deposit volume to offering comprehensive asset allocation solutions. A wealth management manager at a branch of China Construction Bank explained, “We now tailor asset allocations based on clients’ risk preferences, including products like wealth management, insurance, and funds. For example, bancassurance products can lock in interest rates for life, suitable for risk-averse clients; while risk levels R1 and R2 wealth management products can yield 2.3%-2.4% over two years.”

Different banks are also establishing distinct positioning in the asset allocation space. A wealth manager at Bank of Communications recommended conservative investors choose fixed deposits or wealth management products with yields of 2.3%-2.8%; Bank of China offers low-risk products at 1%-1.3% and fixed income plus securities products at 2%-3%. For specific groups, ICBC recommends young people purchase lifelong life insurance to lock in long-term rates, and suggests elderly clients opt for annuity insurance to ensure cash flow; Nanjing Bank focuses on short-term, flexible pure fixed income wealth management products that support quick redemption for emergencies.

This transformation is reshaping the banking landscape. Guo Shiliang believes, “The asset allocation model not only helps banks expand fee-based income and reduce capital consumption but also enhances customer stickiness through improved experience. When banks develop stronger asset allocation capabilities, they indirectly achieve deposit growth goals.” As household wealth management needs continue to evolve, the path toward high-quality banking development is becoming increasingly clear.