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 start 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 conducted on-site visits to branches of the five major banks, some joint-stock banks, and city commercial banks, discovering a clear differentiation in deposit gathering: the five major banks remain “standing firm,” with no adjustments to deposit interest rates and no special deposit campaigns; meanwhile, joint-stock and city commercial banks leverage their consistent advantage in interest rates, with fixed deposit rates generally higher than those of the five major banks, and they launched various deposit promotion activities during the festival.

Additionally, Times Weekly reporters found that banks are undergoing a transformation from “deposit gathering as king” to “asset allocation.” For investors with different risk preferences, capital strengths, occupational backgrounds, and return expectations, wealth managers need to match investment products precisely. 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 deposit interest rates unchanged, strategically abandoning high-interest deposit campaigns, shrinking the deposit and loan spread, and shifting toward activities that enhance assets through points or instant discounts—customers can receive rewards by meeting comprehensive asset targets such as deposits, wealth management, and funds.

According to on-site visits by Times Weekly reporters, the deposit interest rates of ICBC, ABC, BOC, and CCB 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 has no special deposit campaigns or promotions during the Spring Festival, but we give some deposit customers 福字 (Fu character) and couplets as gifts, which are festive rewards and help create a holiday atmosphere.” Other state-owned banks also did not run specific deposit campaigns.

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 with large banks for reliability. However, her children tend to prefer joint-stock banks when choosing banks.

A wealth manager from Bank of China explained: “We are promoting a third-generation social security card campaign that offers instant discounts. The third-generation social security card functions as a bank card, and there are gifts for applying at Bank of China. Once activated, it becomes a type-1 card, replacing the previous social security card.” The manager also noted that Beijing is one of the later cities to implement the third-generation social security card linked with banks.

Times Weekly learned that China Construction Bank also promotes a campaign offering instant discounts for third-generation social security card applications, with discount amounts 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; customers with other needs can also exchange the discount for goods.

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

From inquiries with Industrial Bank, Times Weekly learned that the bank’s “Fortune 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. For fixed deposits, you can contact a branch wealth manager or handle online via mobile banking.”

In the first quarter of 2026, Industrial Bank launched the “Asset Enhancement Speed Up” campaign, which includes two activities. The basic rewards for Activity One are: deposit 10,000 yuan to get 9.9 Jingxi beans or 10,000 gold beans; deposit 100,000 yuan to get 29.9 Jingxi beans or 25,000 gold beans; deposit 300,000 yuan to get 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 features advanced rewards for deposits ranging from 100,000 to 4 million yuan, requiring the amount to be maintained for 90 days.

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

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 with the five big banks for stability, but if I want higher interest, I prefer city or joint-stock banks. It’s a matter of choice—depends on what I value more.”

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

From “deposit gathering as king” to “asset allocation” transformation

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

Post-transition, wealth managers provide clients with professional asset allocation plans, investing funds across wealth management, insurance, funds, government bonds, and savings products, aiming to optimize asset structures and enhance overall returns, helping clients grow their wealth.

Traditional deposit-driven models focus on liabilities, emphasizing deposit scale; whereas asset allocation models are client-centric, offering comprehensive financial solutions covering wealth management, insurance, and funds based on risk and return preferences. Banks thus shift from mere “credit intermediaries” to “financial service advisors.”

The Times Weekly found that banks differ in their focus areas for asset allocation. Most investors are risk-averse, prioritizing stability.

A branch manager at China Construction Bank told Times Weekly: “Currently, wealth management products do not guarantee principal. If you buy them, you 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 fixed rates long-term, effectively countering reinvestment risk, and they also have a forced savings feature that helps plan for the future.”

Another wealth manager from China Construction Bank said: “For conservative investments, products with risk levels R1 or R2 are suitable. We have products with 2.3%-2.4% returns over two years. Savings-type insurance is also an option. For slightly higher risk, bond funds or mixed funds can be considered.”

“Avoid principal risk but want steady returns? R1 or R2 risk-level wealth management products are suitable,” said a wealth manager at Bank of China. The bank’s low-risk products offer interest rates of 1%-1.3%, with some reaching 2%-3%, often linked to fixed income plus securities. Products with over 3% risk tend to be higher risk and require some risk tolerance.

A wealth manager at Bank of Communications said: “If you want stability, fixed deposits are suitable. Our fixed deposit rates are among the highest among the five major banks, offering better returns on conservative 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 life insurance, while seniors might choose annuity products. Lifelong life insurance locks in long-term rates and hedges against downturns, helping asset appreciation; annuities convert a lump sum into a lifelong, stable cash flow, avoiding savings erosion in old age.”

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

Gu Shiliang noted that, in the context of deposit wars, more banks are actively shifting from “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 rises, and deposit gathering goals are achieved indirectly.

Overall, the shift from “deposit gathering as king” to “asset allocation” encourages banks to prioritize 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.