State-Owned Banks Resume 5-Year CDs at Up to 1.6%, Joint-Stock Banks at 1.8%

In late 2025, several banks removed five-year certificates of deposit (CDs) to lower liability costs and ease pressure from narrowing net interest margins. Since July 2026, state-owned banks including Bank of China, Agricultural Bank of China, China Construction Bank and ICBC have resumed issuance of such products, with some joint-stock banks following suit. Demand for five-year CDs currently remains strong both online and offline, with online quotas quickly subscribed and numerous depositors inquiring at branches.

Product details: Bank of China has listed two five-year CDs with a minimum deposit of RMB 200,000 and annual rates of 1.6% and 1.55%, respectively; the 1.6% product has sold out. ICBC launched two five-year personal CDs on August 1, also with a minimum of RMB 200,000 and rates of 1.60% and 1.55%, both transferable. China Construction Bank's five-year personal CD offers an annual rate of 1.60% with a minimum purchase of RMB 200,000. Among joint-stock banks, Ping An Bank sells a five-year personal CD at 1.75% with a RMB 200,000 minimum. Huaxia Bank launched six five-year personal CDs on July 15, with minimum deposits ranging from RMB 200,000 to RMB 1 million and annual rates between 1.75% and 1.80%. Currently, the highest rate for five-year CDs at state-owned banks is 1.6%, while joint-stock banks offer up to 1.8%, both above the corresponding ordinary time deposit rates.

Some banks have not yet followed. Agricultural Bank of China currently has no five-year CD on sale but offers ordinary five-year time deposits at 1.6%. Bank of Communications has no CDs available for purchase; its five-year lump-sum deposit rate is 1.55%, and its three-year rate is 1.65%. Postal Savings Bank has only listed one-year CDs this year and has not added other maturities. China Merchants Bank sells CDs with maturities from one month to two years, with the two-year product requiring a RMB 300,000 minimum and offering the highest rate of 1.4%.

These five-year CDs generally support transfer. If a holder needs funds before maturity, they can transfer the CD on the bank's internal platform, preserving most of the interest earned rather than being recalculated at the demand deposit rate. Ordinary time deposits do not support transfer, and early withdrawal interest is calculated at the demand rate. According to data from the National Financial Regulatory Administration, the net interest margin of state-owned banks stood at 1.29% at the end of the first quarter of 2026, narrowing by 0.01 percentage points from the end of 2025.