Yu'e Bao's income fell below 1.5%! This year's netizen wealth management relies on wool, and the annualized interest rate of 3-month fixed deposit of some banks exceeds 4%

Time Weekly

2024-07-01 07:48Times Weekly official account

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01 Tianhong Yu Bao Money Market Fund's 7-day annualized return fell below 1.5%, hitting a new low since December 20, 2022.

02With the decline in the income of Yu'e Bao, bank fixed deposits, large-amount certificates of deposit and other products have become a new choice for netizens to manage their finances.

03Compared with large state-owned banks and joint-stock banks, the interest rates of fixed deposits and large-amount certificates of deposit of private banks are still relatively high, and some banks have launched preferential activities.

04However, there are certain risks associated with high-interest deposits in private banks, and it is necessary to pay attention to the sustainability of product design and marketing strategies.

Since 056, a number of private banks have followed the deposit interest rate cut, and the deposit interest rate may continue to decline in the future.

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Source of this article: Times Weekly Author: Zhou Mengmei

"The 5-year annualized interest rate is 3.6%, and it sells out in 1 minute!" Wang Tiantian (pseudonym) set the alarm clock and prepared to squat to grab the large certificate of deposit quota of Zhenxing Bank. In the information exchange group of large certificates of deposit where he belongs, everyone is discussing the reduction of deposit interest rates and which bank's interest rate on large certificates of deposit is relatively high.

According to the data of Tiantian Fund, as of June 28, the 7-day annualized rate of return of Tianhong Yu'e Bao Money Market Fund was 1.4890%, a new low since December 20, 2022. With the decline in the overall yield of money market funds represented by Yu Yu Bao, products such as bank fixed deposits and large-amount certificates of deposit with relatively high interest rates have become the "favorites" of users, and many netizens have shared savings strategies on social platforms.

Many private banks have also taken advantage of this "pouring traffic" and used various welfare activities to attract depositors.

The Times Weekly reporter found that under the tide of interest rate cuts, compared with large state-owned banks and joint-stock banks, many private banks' fixed deposits and large-amount certificates of deposit still hold the high interest rate, and some banks have launched preferential activities, with the annualized interest rate of 3-month and 5-year fixed deposits and other products exceeding 4%.

However, there are certain risks associated with high-interest deposits in private banks.

"From the perspective of the savings strategy of private banks, in order to reduce disputes, they mostly provide deposit products with higher interest rates by soliciting new customers or opening a white list for old customers, and occasionally products for all customers also need to be snapped up, and on the whole, the risk factors behind them have been greatly alleviated compared with two or three years ago." Su Xiaorui, a senior researcher at Suxi Zhiyan, told the Times Weekly reporter that at present, the income on the asset side continues to decline, and it is also necessary to pay attention to the sustainability of the corresponding product design and marketing strategy, and prevent market arbitrage behaviors such as "low loans and high deposits" by customers.

Source: Picture Worm Creative

Some banks have a 3-month fixed deposit interest rate of 4.4% per annum

With the large state-owned banks, joint-stock banks, urban and rural commercial banks and other rounds of lowering deposit interest rates, depositors have to "excavate" deposit products with higher yields in the market, such as "asking for the recommendation of large-amount certificates of deposit, the annualized interest rate is more than 3%", "which bank has a higher deposit interest rate", "deposit special forces to fight private banks" posts emerge in endlessly.

Private banks, which have always been known for their high-interest deposits, have attracted the attention of more depositors.

"I originally planned to go to Sichuan as a deposit special soldier (referring to saving money across provinces and regions), but I didn't expect to receive a notice of interest rate reduction before I went, and I deposited all the money in a private bank in one breath, with a one-year fixed product with an annualized interest rate of 3.9%." Some netizens posted on social platforms.

Sushang Bank is the first private bank in Jiangsu Province. A reporter from Times Weekly verified with Su Ming (pseudonym), a customer manager of Sushang Bank, that the bank does issue deposit benefits to new customers.

"At present, we have two deposit products for new customers, one can enjoy the newcomer gift (points) if you deposit more than 20,000 yuan, and the annualized interest rate can reach 4.4%; The other is to deposit 50,000 yuan, plus upgrade gifts (points), the annualized interest rate can reach 4.2%, a total of 70,000 yuan can be saved, and the term is 3 months. Su Ming said that points can be withdrawn directly, just like cash.

He also added, "This year, bank lending rates are falling, profits are also falling, (we) can't pull deposits, and we even need to pay for our own money." ”

In addition to Sushang Bank, there are also other private banks with an annualized interest rate of more than 4% for fixed deposit products.

A market intermediary Wu Yuan (pseudonym) told the Times Weekly reporter that the annual interest rate of Zhongbang Bank's 5-year fixed deposit is 2.45%, but with the growth value (referring to the bank subsidy, the annualized interest rate of this part of the subsidy is about 1.05%), plus the maturity growth value of 0.52%, and the first month of additional rewards and other benefits, the bank's 5-year fixed deposit annualized interest rate can reach 4.1%.

This deposit interest rate far exceeds that of the same type of products of state-owned banks and joint-stock banks. According to the monitoring data of the Rong 360 Digital Technology Research Institute, in May this year, the average interest rate of the 3-year lump sum deposit and the average interest rate of the 5-year deposit was 2.512%, and the average interest rate of the 5-year deposit was 2.461%. Compared with the previous month, the average interest rate on medium- and long-term deposits has decreased.

Another intermediary, Lin Ke (pseudonym), also expressed a similar statement to a reporter from the Times Weekly, saying that the 5-year fixed deposit interest rate of Zhongbang Bank can reach 3.95%, and the newcomer can enjoy a JD card of 805 yuan, in addition to the member reward Bangdou (which can be exchanged for cash).

Private banks' large-value certificates of deposit are even more favored by depositors, and the quota needs to be "grabbed".

"The annualized interest rate of Zhongbang Bank's 5-year large-amount certificate of deposit can reach 3.65%, which is basically the product with the highest interest rate on the market, but the amount is limited, and I can provide 'help' here." Wu Yuan told a reporter from Time Weekly. In the large-value certificate of deposit exchange group, many depositors said that the quota is very tight.

"Except for Zhongbang Bank, the annualized interest rate of 5-year large-amount certificates of deposit basically does not exceed 3.5%, and now many banks have no quota for large-amount certificates of deposit with high interest rates, and they are not sold offline." Lin Ke said.

"At present, our bank's large-value certificates of deposit only have products with a three-year annualized interest rate of 3.3%, and they are transfer orders, which need to be queued, and they can generally be queued in about 2 months." Su Ming told the Times reporter that compared with time deposit products, large-amount certificates of deposit can be transferred, have good liquidity, and even some depositors use them as demand deposits.

Attracting customers and absorbing savings through preferential activities is more common among private banks.

Lin Ke told reporters that he also has large certificates of deposit and fixed deposit products from private banks such as Huatong Bank, Merchant Bank, Fumin Bank, and Jincheng Bank to choose from.

Private banks have also followed suit with interest rate cuts

Behind the high-interest deposits of private banks, it is inseparable from the advantages of their high net interest margins.

According to data from the State Administration of Financial Regulation, the net interest margin of commercial banks at the end of the first quarter of this year was 1.54%, down 0.15 percentage points from 1.69% in the same period of 2023 and at a record low. In response to the pressure on net interest margins, the banking industry has started a wave of interest rate cuts since last year to reduce the cost of debt.

As of the end of the first quarter of this year, the net interest margin of private banks was 4.32%, much higher than that of large commercial banks (1.47%), joint-stock commercial banks (1.62%), urban commercial banks (1.45%), rural commercial banks (1.72%), and foreign banks (1.47%).

On the other hand, the issuance of high-interest deposits is related to the private banking model.

"Compared with urban and rural commercial banks, the distribution characteristics of private banks have the principle of 'one province and one store', and the establishment of stores follows the principle of 'one bank and one store', and it is impossible to lay out a wide range of physical outlets like traditional banks, which leads to private banks relying on online deposits." Su Xiaorui explained to a reporter from Time Weekly.

She further said that under the wave of digital transformation of the financial industry and strict supervision, the path of private banks to implement intelligent deposit distribution through Internet platforms has long been blocked, and the ability of self-operated deposits has not yet been able to match traditional banks, so they have adopted a high-interest deposit strategy.

However, since June, a number of private banks have followed the pace of deposit rate cuts.

On June 7, Fumin Bank announced on its official website that the bank had lowered the 3-month, 6-month, and 1-year listed interest rates to 1.55%, 1.75%, and 1.9% respectively since June 19; On June 26, WeBank also updated the listed deposit interest rate on its official website, and the bank's 1-year, 2-year, and 3-year fixed deposit interest rates were adjusted to 1.65%, 2.20%, and 2.30% respectively. In addition, during the year, Sichuan Xinwang Bank, Liaoning Zhenxing Bank, Jiangxi Yumin Bank, etc. all lowered the listed interest rates on deposits.

"In late July, our fixed deposit rates may also fall." Su Ming told a reporter from Time Weekly. Many netizens also discussed in the above-mentioned large-amount certificate of deposit exchange group, which private bank's deposit products are cutting interest rates, and what "wool" can be picked.

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