Wang He: With Interest Rates at an All-Time Low, Why Do Chinese People Keep Their Deposits High? | Bank of China

On May 20, China's banking industry lowered deposit rates across the board, with the current deposit rates of the six state-owned banks falling to 0.05%, just one step away from zero interest rates! The 1-year fixed deposit rate fell to 0.95% (only the Postal Savings Bank was 0.98%), falling below 1%; the 2-year, 3-year and 5-year fixed deposit rates were 1.05%, 1.25% and 1.3% respectively, entering the "1% era". Such low interest rates are unpr…