Every reporter｜Tu Yinghao
Large-denomination certificates of deposit are returning to the horizons of savers.
Recently, major state-owned banks, joint-stock banks, urban and rural commercial banks, foreign banks, etc. have collectively restarted the issuance of large-denomination certificates of deposit. "Daily Economic News" reporters learned through online inquiries and telephone consultations that the current interest rate for large-denomination certificates of deposit products of state-owned banks is the highest at 1.60% (annualized interest rate, the same below). Among joint-stock banks, Minsheng Bank’s interest rate is at a relatively high level, and the interest rate on 5-year certificate of deposit products can reach 1.79%. In terms of foreign banks, the interest rate of Wing Feng Bank’s 3-year certificate of deposit product can reach 1.92%.
In addition, the reporter noticed that the issuance quota for this round is relatively tight, and the App pages of many banks show that medium and long-term products have been sold out. Some bank branch staff also said that large-denomination certificates of deposit products need to be snapped up. "There are no large-denomination certificates of deposit in the past two days." A staff member of a Postal Savings Bank branch in Shanghai said that the bank's large-denomination certificates of deposit products are sold out and they need to wait for the head office to issue a quota.
Zeng Gang, president of Tianfu Liyan Financial Research Institute, analyzed that the intensive return of large-denomination certificates of deposit in this round is the result of multiple factors such as the repricing of high-cost funds, long-term pressure on banks’ hedging assets, the decline in the listed interest rates of large-denomination certificates of deposit, and the further improvement of management systems.
Banks intensively put large-denomination certificates of deposit on shelves
At the end of November 2025, the six major state-owned banks collectively removed 5-year large-denomination certificates of deposit from the shelves, and long-term large-denomination certificates of deposit entered a "severance" state. Recently, banks have intensively launched large-denomination certificate of deposit products, which has attracted widespread market attention.
As early as July 1, 2026, the Bank of China announced the issuance of the first batch of large certificates of deposit in 2026, covering 7 maturities, of which the interest rates for 2-year, 3-year, and 5-year terms are 1.20%, 1.55%, and 1.60% respectively. Subsequently, China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, etc. successively resumed the issuance of large-denomination certificates of deposit. In October, all five-year certificates of deposit from the six major banks returned. "In three years, it will be 1.55%, and in five years, it is now 1.60%." A China Construction Bank staff member said.
The joint stock banks and other banks will follow up simultaneously. Industrial Bank's 3-year large-denomination certificate of deposit interest rate can reach up to 1.75%, with a minimum deposit of 200,000 yuan, and is currently sold out; China Merchants Bank's 2-year large-denomination certificate of deposit has an interest rate of up to 1.40%, with a minimum deposit of 300,000 yuan; China Minsheng Bank's 5-year large-denomination certificate of deposit interest rate can reach 1.79%, with a minimum deposit of 200,000 yuan.
Although large-denomination certificates of deposit have basically returned, the quota of newly issued products is generally tight. The interest rates of Bank of China's two five-year products are both 1.60%, and as of press time, both show insufficient quotas; the Industrial Bank App shows that the bank's long-term large-denomination certificates of deposit have been sold out.
The interest rates of foreign banks are relatively high. The interest rate of Sino-Fung Bank's 3-year large-denomination certificate of deposit is 1.92%, with a minimum deposit of 200,000 yuan; the 2-year large-denomination certificate of deposit has a minimum deposit of 50,000 yuan, with an interest rate of 1.84%. "There have been many customers coming to handle deposit business recently," the bank's account manager said. HSBC's three-month new RMB certificate of deposit interest rate can reach 1.30%, which is at a higher level than Chinese banks' products of the same term.
Su Xiaorui, a senior researcher at Suxi Zhiyan, said that the interest rates on large-denomination certificates of deposit of foreign-funded banks are generally higher than those of Chinese-funded banks. There are multiple driving factors behind this: First, the core advantageous businesses of foreign-funded banks in China are cross-border settlement, trade financing, etc., and large-denomination certificates of deposit can stabilize the source of funds for related businesses; second, foreign-funded banks have a small number of outlets, their customer base is not as good as that of local banking institutions, and they lack the foundation for low-cost deposits. In addition, in the face of the intensive listing of large certificates of deposits by interbank institutions, combined with factors such as the timing of year-end assessments, foreign banks are facing greater pressure to attract deposits.
Multiple factors help large-denomination certificates of deposit return to market
Previously, banks have removed large-denomination certificates of deposit products in large numbers. Zeng Gang believes that this is because the income on the asset side has declined faster than the liability side, and the net interest margin has been pushed to a historical low. It is a rational choice for banks to proactively reduce long-term high-cost deposits. Su Xiaorui also said that the direct factor behind banks' previous reduction of large certificates of deposit was an attempt to alleviate the pressure on interest margins, thereby reducing the liability costs of banking institutions and providing a buffer for the subsequent relief or even recovery of net interest margins.
However, the current return of large certificates of deposit does not mean that interest spreads have returned to historical levels. According to data from the State Administration of Financial Supervision, the net interest margin of commercial banks in the second quarter of 2026 was 1.41%, an increase of 1 BP (basis point) from the previous quarter. Although it was the first single-quarter recovery since 2022, it was far less than historical levels. The interest margin pressure faced by banks still exists.
Why do large-denomination certificates of deposit begin to return intensively? Zeng Gang believes that this is the result of the superposition of multiple factors.
First, the opportunities and challenges of repricing high-cost funds. High-interest fixed deposits and large-denomination certificates of deposits in the early stage have gradually expired, and banks are faced with customers renewing deposits, switching to other products, or funds flowing out of the balance sheet. This stage is a window period for banks to renew deposits at lower interest rates, reduce liability costs, and repair net interest margins. If the product is not attractive enough, customers may turn to areas such as financial management and depository funds. Banks need to weigh the balance between reducing costs and preventing the loss of deposits. This is the first reason for banks to restart long-term large-denomination certificates of deposit.
Second, the asset-liability structure is imbalanced. Large state-owned banks have a high proportion of medium- and long-term loans, but their liabilities are short-term and current, and the duration gap is more obvious. Restarting long-term certificates of deposit can restore liability duration and hedge against long-term pressure on assets.
Third, the price space has been opened. The interest rate on five-year certificates of deposit has dropped to about 1.60% from more than 3% three years ago. Banks dare to restart large certificates of deposit because the current costs are low enough and long-term liabilities are once again feasible. This is an arrangement under the premise that liability costs are controllable. It is not an arrangement where industry competition intensifies and banks actively increase prices to attract deposits.
Fourth, the management system is further improved. In June 2026, the central bank issued the "Administrative Measures for Large-denomination Certificates of Deposit (Draft for Comment)" which clarified that it plans to change the starting point for the subscription of individual large-denomination certificates of deposit from 300,000 yuan stipulated in the original interim measures to 200,000 yuan, while allowing transfers through the bank's own channels and approved third-party platforms. The institutionalized confirmation of the subscription threshold and the expansion of transfer channels will help improve the liquidity of large certificates of deposit and alleviate savers' concerns.
