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 visited branches of the five major banks, some joint-stock banks, and city commercial banks, discovering clear differentiation in deposit gathering: the five major banks “stand firm,” with no adjustments to deposit interest rates and no special deposit campaigns; meanwhile, joint-stock and city commercial banks maintain an advantage 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 holiday.

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 spread between deposits and loans, and shifting toward activities that enhance assets through points or instant 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 holiday, 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, two, and three-year terms.

An ICBC wealth manager told Times Weekly: “ICBC did not run any special deposit campaigns or promotions during the Spring Festival. We distributed 福字 (Fu characters) and couplets to some deposit customers as holiday gifts, which is part of the festive atmosphere and customer appreciation.” Other state-owned banks also 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 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 from Bank of Communications said that usually, wealth managers encourage customers to use the discount for mobile banking top-ups, but other exchanges are also possible.

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 big five. Customers interested in fixed deposits can contact their relationship managers or handle it directly via mobile banking.”

In the first quarter of 2026, Industrial Bank launched the “Asset Growth 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 1 million 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 over 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 example, a three-year fixed deposit with a minimum of 10,000 yuan offers a rate of 1.85%; with a minimum of 100,000 yuan, 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 big five 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 the “Opening Red” or first-quarter campaigns.

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

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

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

Amid the deposit war, 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 professional asset allocation plans, investing funds across wealth management, insurance, funds, government bonds, and savings products, offering clients suitable financial solutions to optimize their asset structure and enhance overall returns, aiming for wealth appreciation.

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

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

A branch manager from China Construction Bank told Times Weekly: “Currently, wealth management products do not guarantee principal. If customers buy them, 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 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 seek steady investment? R1 or R2 risk-level wealth management products are suitable,” said a China Bank wealth manager. 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, with higher-risk products exceeding 3%, requiring some risk tolerance.

A wealth manager from Bank of Communications said: “If you want a steady approach, fixed deposits are suitable. Their rates are among the highest in the big five, offering more returns on a stable basis. Also, wealth management products with interest rates 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 seniors might choose annuity products. Lifelong insurance locks in long-term rates and resists downward risks, helping asset growth; annuities convert a lump sum into a lifelong, stable cash flow, avoiding savings erosion due to poor financial management in old age.”

A wealth manager from Nanjing Bank 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 to meet emergency needs. Medium- and low-risk products are also suitable.”

Guo Shiliang noted that as deposit wars intensify, more banks are actively transforming 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 is indirectly achieved.

Overall, the shift from “deposit gathering as king” 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.