Chongqing Fumin Bank announced on the 15th that it has stopped accepting new deposits for 2-year and longer fixed-term and renewal products. This move comes after mainland banks have been widely delisting 3-year and 5-year fixed-term deposits, now including 2-year deposits in the delisting category.
According to the announcement released by Chongqing Fumin Bank on June 15 titled “Announcement on the Suspension of Acceptance of New Deposits for 2-Year and Longer Fixed-term and Renewal Products,” it stated, “Starting today, our bank’s mobile banking app, WeChat mini-program, and other online channels will temporarily stop accepting new deposits for 2-year and longer fixed-term and renewal products.” It also mentioned, “Existing 2-year and longer deposits that have been processed will not be affected by this adjustment, and will continue to earn interest based on the agreed rates at the time of deposit, and will be redeemed or renewed upon maturity as usual.”
The announcement indicated that all medium to long-term deposits through online channels at Chongqing Fumin Bank are no longer available for purchase.
In response to this, Ai Yawen, a senior analyst at the Rong360 Digital Technology Research Institute, analyzed to “First Financial” that the delisting of medium to long-term fixed-term deposits by banks is mainly due to the lack of growth in high-quality loan assets, paired with the difficulty of sustaining the high-interest acquisition model, leading institutions to proactively reduce high-cost, long-term liabilities.
Since May this year, several banks have delisted 3-year and 5-year fixed-term deposits, including Beijing Zhongguancun Bank, Hunan Sanxiang Bank, Bank of YiLian, Huarui Bank, Xinan Bank, and Webank, where it is no longer possible to purchase 5-year fixed deposits through the bank apps. Furthermore, as early as November last year, all RMB fixed-term deposit products at Lanhai Bank were shown as “sold out” on the mobile banking app.
In addition to delisting medium to long-term deposits, interest rates on fixed-term deposits of various terms offered by banks have been continuously decreasing. The Rong360 Digital Technology Research Institute’s May 2026 Bank Deposit Interest Rate Report shows that compared to April, in May, the average interest rates for 3-month, 6-month, 1-year, 2-year, 3-year, and 5-year fixed-term deposits all declined. Notably, the interest rates for 3-year and 5-year terms are showing a clear inversion.
According to a report by “Jiemian News,” over the past years, private banks have attracted customers with higher deposit interest rates, with some private bank 3-year and 5-year fixed-term deposit rates exceeding 3%, much higher than similar products offered by large banks, attracting many depositors seeking stable returns. Private banks have thus carved out market space beyond large state-owned and joint-stock banks. However, in the past two years, with China entering a low-interest rate environment, bank deposit rates have continued to decrease, and the high-interest acquisition model has gradually lost its viability.
Some industry insiders believe that the deeper reason behind the delisting of long-term deposit products is the weakened loan demand. They mentioned, “If the loans cannot be disbursed, why keep so many high-interest rate deposits.”
Ai Yawen believes that influenced by market conditions and banks’ pressure on net interest margins, the downward trend in deposit rates has become a norm, making a significant rebound unlikely in the short term.