Banks are once again lowering deposit interest rates, returning to normal management.

[Source: Huanqiu.com]

[Huanqiu.com Financial News Report] Since April, many small and medium-sized banks have been intensively lowering their deposit listing interest rates. According to an announcement from Xiamen Bank, starting April 1, the annualized interest rates for fixed deposits of 1 year, 3 years, and 5 years will be reduced to 1.2%, 1.4%, and 1.4% respectively, down by 10, 20, and 20 basis points from previous levels.

Jilin Bank also announced that from April 1, the three-year fixed deposit rate for whole deposit withdrawal will be lowered from 1.75% to 1.7%, a decrease of 5 basis points. Fujian Haixia Bank also lowered the rates for negotiated deposits and notice deposits, with negotiated deposits down by 5 basis points to 0.6%; one-day and seven-day notice deposits were each lowered by 10 and 20 basis points to 0.6% and 0.9%, respectively.

Statistics show that since late March, over 30 small and medium-sized banks, including Fujian Huantong Bank and Xishang Bank, have lowered deposit rates, with several banks experiencing more significant reductions in three-year and five-year deposit rates. Huolian Futures analysis suggests that, looking back to early 2026, in order to boost the “opening red” performance, major banks generally adopted phased measures to curb the decline of deposit interest rates. As the “opening red” campaign officially concludes, banks no longer need to attract deposits through phased interest rate discounts, and the industry is gradually returning to a normalized interest rate management model. The pace of deposit rate adjustments has also returned to normal levels.

Industry insiders analyze that currently, the net interest margin in the banking sector is at a historic low overall. The main reason for small and medium-sized banks lowering deposit rates is to reduce liability costs and stabilize net interest margins. (Wen Hui)