Spring Festival Deposit Gathering Divergence: State-Owned Major Banks Prioritize Stability, Small and Medium Banks Compete with High Interest Rates to Attract Customers and Accelerate Transformation

At the start of the new year, as year-end bonuses are distributed and funds are at their peak, major banks are actively planning their asset allocation and deposit gathering strategies for the year. On-site visits to several bank branches revealed that state-owned large banks, joint-stock banks, and city commercial banks are showing clear differences in their deposit-raising tactics. Meanwhile, the banking industry as a whole is accelerating its shift from “deposit gathering as the main focus” to “asset allocation” models.

In the state-owned large bank sector, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank maintained stable deposit rates during the Spring Festival. The one-year, two-year, and three-year fixed deposit rates were 1.1%, 1.2%, and 1.55%, respectively. Bank of Communications offered slightly higher rates at 1.3%, 1.4%, and 1.65% for the same terms, but did not launch any special deposit campaigns. An ICBC financial manager stated, “There are no special promotions this Spring Festival, only holiday gifts like 福字 (Fu character) couplets for select customers.” Bank of China attracted customers by offering 70-150 yuan discounts when applying for the third-generation social security card. China Construction Bank also launched similar activities, though the limits vary by bank.

In stark contrast to the cautious strategies of the large state banks, joint-stock banks and city commercial banks are more active in the deposit market. Industrial Bank’s “Fortune Gold” fixed deposit rates reach 1.3%, 1.4%, and 1.75%, and they have launched the “Asset Enhancement Speed” campaign: customers who increase their assets by 10,000 yuan can earn 9.9 Jingxi beans; those who increase by 300,000 yuan can earn 45,000 gold beans. After meeting the target, customers need to maintain the balance for three days to receive their rewards. Bohai Bank’s three-year fixed deposit rate can go up to 1.9%, with higher rates available for customers with a minimum deposit of 100,000 yuan. City commercial banks like Nanjing Bank and Hangzhou Bank offer one-year rates of 1.5% and 1.6%, and three-year rates of 1.9%, also launching new customer lotteries and small gift giveaways.

This differentiation reflects the varying operational pressures faced by different types of banks. Financial commentator Guo Shiliang pointed out, “Large state banks have a strong customer base and stable deposits, so their need to adjust rates before the Spring Festival is low. In contrast, joint-stock and small to medium-sized banks need to attract deposits through rate discounts and promotional activities to cope with funding pressures.”

Alongside this deposit-raising divergence, the banking industry is undergoing a deeper transformation. The narrowing interest rate spread caused by marketization, combined with diversified household wealth management needs, is pushing banks to shift from simply pursuing deposit volume to offering comprehensive asset allocation solutions. A wealth management manager at a branch of China Construction Bank explained, “We now tailor fund allocations based on clients’ risk preferences, including products like wealth management, insurance, and funds. For example, bancassurance products can lock in interest rates for life, suitable for risk-averse clients; while risk levels R1 and R2 wealth management products can yield 2.3%-2.4% over two years.”

Banks are also developing differentiated positioning in asset allocation. A wealth manager at Bank of Communications recommended conservative investors choose fixed deposits or wealth management products with yields of 2.3%-2.8%. Bank of China offers low-risk products with 1%-1.3% returns and fixed income plus securities products with 2%-3%. For specific groups, ICBC recommends young people purchase lifelong life insurance to lock in long-term rates, while suggesting older clients opt for annuity insurance to ensure cash flow. Nanjing Bank focuses on short-term, flexible pure fixed-income wealth management products that support quick redemption for emergencies.

This transformation is reshaping the banking landscape. Guo Shiliang believes, “The asset allocation model not only helps banks expand their intermediary business income and reduce capital consumption but also enhances customer stickiness through improved experience. When banks develop stronger asset allocation capabilities, they indirectly achieve deposit-raising goals.” As household wealth management needs continue to grow, the path toward high-quality banking development is becoming increasingly clear.