At the beginning of 2026, as large state-owned banks continue to shrink their long-term high interest deposit products, a "counter trend upward adjustment" of deposit interest rates led by small and medium-sized banks quietly occurs. From Jiashan in Zhejiang to Shangnan in Shaanxi, several rural commercial banks have intensively raised the interest rates for fixed deposits with a term of 1 to 3 years, with the magnitude ranging from 10 to 20 basis points; At the same time, the market for large denomination certificates of deposit has also experienced a surge in issuance, with rural commercial banks becoming the absolute mainstay. Experts say that this seemingly contradictory move to the overall downward trend of interest rates in the market is not a signal of industry strategic shift. Against the backdrop of widespread pressure on net interest margins in the banking industry and a moderately loose monetary policy, this is more like a short-term marketing campaign launched by small and medium-sized banks at the critical beginning of the year to compete for market share. It deeply reflects the differentiated survival strategies of banks of different sizes between fierce competition and cost control. This round of interest rate hikes has distinct characteristics of being phased, targeted, and regional. For example, Zhejiang Jiashan Rural Commercial Bank has raised the one-year and two-year fixed deposit interest rates to 1.50% and 1.75% respectively, and set a tiered interest rate of 1.75% to 1.85% for three-year deposits based on different minimum deposit amounts of 10000 yuan, 100000 yuan, and 200000 yuan. Shaanxi Linyou Rural Commercial Bank also launched a limited time discount from January to March, with the interest rate for one-year deposits over 50000 yuan floating up to 1.4%. It is worth noting that these adjustments generally come with clear restrictive clauses: on the one hand, they set a high minimum deposit threshold of tens of thousands or even 200000 yuan, and on the other hand, they clearly indicate "limited release, sold out" or set a short discount period of a few months. This clearly indicates that the core purpose of raising interest rates is to precisely attract large and short-term funds from local depositors during the critical window of active capital flow before and after the Spring Festival and the need for reserve funds for annual credit disbursement, rather than conducting comprehensive debt cost adjustments. In sharp contrast to this phenomenon is the continuous contraction of large banks in the field of long-term restricted deposits. As early as the end of 2025, the six major state-owned banks collectively delisted 5-year large denomination certificates of deposit products. Currently, the average interest rate for 3-year large denomination certificates of deposit issued by small and medium-sized banks is about 1.8%, while the interest rate for same period limited products issued by the four major state-owned banks is generally around 1.55%. This differentiation strategy is rooted in the vastly different market positions and debt pressures of the two. For small and medium-sized banks with unclear network and brand advantages, especially those rooted in rural and county-level markets, deposits are the foundation of their existence. A business representative from a city commercial bank in the central region admitted, 'At the beginning of the year, we needed sufficient deposits to support credit lending, and raising interest rates is the most direct and effective way to attract local customers.' Behind the 'counter trend price increase' is the severe profit pressure faced by the banking industry. According to data from the State Administration of Financial Supervision and Administration, as of the end of the third quarter of 2025, the net interest margin of commercial banks was only 1.42%, which is at a historical low. An analyst from a financial research institution said, "Asset side loan interest rates continue to decline, and if debt costs are not strictly controlled, there may be a risk of interest rate inversion between deposits and loans." Long term, high interest deposits issued in the past have gradually become a burden on banks in the current cycle of interest rate decline, and compressing long-term liabilities and controlling overall costs has become an industry consensus. Lou Feipeng stated that small and medium-sized banks are very cautious when raising interest rates, generally adopting a "small, short-term, high threshold" approach, aiming to achieve deposit growth at a specific point in time with the lowest possible cost, and seek a balance between intense demand for deposits and severe interest rate pressure. The 2026 Work Conference of the People's Bank of China proposed to continue implementing a moderately loose monetary policy to promote the low operation of social comprehensive financing costs. The market generally expects that, under the trend of guiding the reduction of financing costs in the real economy, the "steady decline" of deposit interest rates is still the basic direction. Zeng Gang, director of the Shanghai Finance and Development Laboratory, believes that the measures taken by small and medium-sized banks are "targeted, regional, and phased short-term deposit collection strategies". Xue Hongyan, a special researcher at Su Shang Bank, said that at the beginning of the year, a large number of fixed deposits were concentrated and matured, and there was a strong demand for residents to reallocate funds, which provided an important marketing window for small and medium-sized banks. But as this special moment passes, the phased interest rate hike behavior will gradually withdraw. Dong Ximiao, Chief Economist of CMB, stated that in the long run, both large and small banks should shift from a "cost driven" deposit collection model to accumulating funds by enhancing their comprehensive financial service capabilities, which is the fundamental path to cross cycles and achieve high-quality development. (New Society)