China Construction Bank offers richer clients higher rates on ‘big-sum savings’ accounts
State lender offers yearly return as high as 2.25pc, or 1.5 times the one-year benchmark savings rate – but client have to make minimum daily deposits of 10,000 yuan in the first 90 days, and more than 1m yuan yearly
China Construction Bank has been quietly attracting larger deposits by offering higher rates of interest to select clients in Shanghai – a fresh sign that it is working hard to secure a weapon to improve earnings after Beijing’s call for lower leverage levels
The Beijing-based bank has been marketing the savings scheme hard since last week in Shanghai, which offers a yearly return as high as 2.25 per cent, or 1.5 times the one-year benchmark savings rate. Client have to maintain an average daily deposit value of more than 1 million yuan (US$145,115) for one year and make minimum daily deposits of 10,000 yuan in the first 90 days, according to two customer relationship managers at the bank.
The saving scheme offers savers more flexibility than term deposits, they added, yet higher returns than standard deposit accounts.
The newly introduced big-sum savings option is being used to “attract deposits from rival banks”, said one of the managers, who declined to be named. A press officer from the bank in Shanghai said she was unware of the issue.
The bank, one of China’s “Big Five” state-owned lenders, has been marketing similar plans for a number of years, but with lower average requirements and rewards.
The 10,000 yuan daily requirement was the same, but the 1 million yearly total was not needed, and the maximum interest rate offered was 1.75 per cent.