Five-Year Fixed Deposits Return to Several Chinese Private Banks

Several private banks in China have begun bringing five-year fixed-term deposit products back to their product shelves, marking a notable shift after many banks reduced or suspended long-term deposit offerings earlier this year.

The latest changes have emerged in September 2026, as some private banks adjust their deposit strategies amid continued pressure on banks' net interest margins. Market data show that five-year fixed deposits are once again available at a number of private lenders, with some products offering annual interest rates close to or above 2%.

According to recent reports, five-year fixed deposits at MYbank and Suning Bank are currently offered at annual rates of around1.8%, while Xinwang Bank offers a five-year rate of about1.9%. Some five-year products at Hwabao Bank have reached2.1%, although higher-rate products may be subject to specific eligibility or product conditions.

The return of these products comes after a period in which long-term deposits became increasingly scarce. During the first half of 2026, several private banks removed five-year deposits and other medium- and long-term products as the banking industry continued efforts to reduce funding costs.

Some institutions, including Beijing Zhongguancun Bank, Hunan Sanxiang Bank and Yilian Bank, had previously withdrawn five-year deposit products. Their recent reappearance at some banks suggests that deposit strategies are becoming more differentiated across the sector.

The changes are not limited to five-year products. WeBank, one of China's largest private banks, recently raised the interest rate on its three-year fixed deposit from 1.60% to1.75%, an increase of 15 basis points.

The bank's latest listed rates for regular fixed deposits are 1.60% for five years, 1.75% for three years, 1.60% for two years, 1.50% for one year, 1.30% for six months and 1.10% for three months. As a result, its three-year deposit rate is currently higher than its five-year rate.

The situation highlights an important change in the structure of China's deposit market. Banks are no longer necessarily following the traditional pattern in which longer maturities automatically carry higher interest rates. In some institutions, three-year products now offer higher rates than five-year deposits.

Industry analysts cited in recent reports have described the latest moves asstrategic and temporary adjustments rather than a reversal of the broader downward trend in deposit rates. Individual banks may be responding to their own funding requirements, deposit maturities and lending plans.

Competition from larger banks may also be a factor. Several major state-owned banks resumed offering five-year large-denomination certificates of deposit earlier this year, giving customers additional long-term savings options. Smaller and private banks may therefore use selected deposit products and pricing adjustments to retain or attract deposits.

The reappearance of five-year deposits should therefore not be interpreted as a return to the era of broadly high deposit rates. China's banking sector continues to face pressure on net interest margins, while reducing funding costs remains an important long-term direction for the industry.

For depositors, the renewed availability of five-year products provides more choices, but interest rates are not the only factor to consider. Liquidity, early-withdrawal rules, product terms and the actual applicable rate are also important, particularly when three-year deposits offer higher rates than five-year products at some banks.

Overall, the latest developments point to a more differentiated deposit market. While some private banks are bringing back five-year products and selectively raising rates, the changes currently appear to reflect individual funding strategies rather than a broad-based reversal of China's declining deposit-rate trend.