A bank suddenly announced: This type of deposit service will be terminated soon
2024-08-20
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According to the website of Shenzhen Rural Commercial Bank, Shenzhen Rural Commercial Bank issued an announcement on August 20, stating that due to policy adjustments, it will terminate the seven-day notice deposit service for existing units with an interest rate exceeding 1.55% on October 15, 2024.
Many banks have removed two types of deposit products from their shelves
Since March 2024, smart notification deposits have been withdrawn from the market on a large scale at many banks across the country.
According to the 21st Century Business Herald, due to regulatory requirements, many banks' smart notice deposit products were completely removed from the shelves on May 15. Some banks also removed conventional notice deposit products that previously had higher interest rates.
At the same time, although banks have removed this business from the shelves, they all have their own alternative plans: some banks continue to retain such products for private banking customers with larger deposit amounts; some banks recommend customers to purchase structured deposit products as a substitute; and some banks upgrade new products based on smart notification deposits.
According to the reporter, there are generally two types of bank notice deposits, namely regular notice deposits and smart notice deposits, the latter being an upgraded version of the former. Regular notice deposits are time savings, with a minimum deposit amount of 50,000 yuan, divided into one-day and seven-day types, with no agreed deposit period, and interest begins to accrue on the day of deposit. When using money, you need to apply for a notice transfer to a current account in advance, and the principal and interest will be credited to the account one or seven days after the agreed date. When the funds of the smart notice deposit are deposited into the current account, the system will automatically calculate interest according to the corresponding interest calculation rules, and the funds can be used at any time without advance reservation.
According to 21 Financial News, as deposit interest rates have been declining, three-year time deposits in many banks across the country have entered the "breaking 2%" era. It is worth noting that some banks have already seen an "inverted" deposit interest rate phenomenon, with the five-year time deposit rate even lower than the three-year time deposit rate.
On July 22, 2024, the central bank suddenly launched a "policy-based interest rate cut" and announced that starting today, the 7-day reverse repurchase rate in the open market will be adjusted from the previous 1.80% to 1.70%. On the same day, the 1-year and 5-year LPRs both dropped by 10 basis points, to 3.35% and 3.85%, respectively. At the same time, the central bank also announced that MLF participating institutions that sell medium- and long-term bonds will be exempted from MLF collateral in stages.
Three days after the one-year loan market benchmark rate (LPR) was lowered, the six major state-owned banks proactively adjusted their deposit quoted rates on July 25. Subsequently, a number of joint-stock banks followed suit and lowered their deposit rates.
