Smaller banks in Shanghai are offering higher interest rates to lure depositors after the central bank’s latest rate cut, which is expected to benefit home buyers, according to analysts.
City commercial and joint-stock banks have raised their one-year deposit rate above 2.75 percent after the People’s Bank of China cut the benchmark rate to 2.05 percent effective from yesterday, Shanghai Daily found.
The Bank of Nanjing offers the highest rate of 3.15 percent among 27 domestic and foreign banks, while the five largest state-owned banks and the Postal Savings Bank of China are offering one-year rate no higher than 2.55 percent.
