(Yicai  Global) Dec. 4 -- Many private banks have rolled out intelligent  deposit products featuring high-interest rates compared to those from  traditional commercial lenders to attract savers. 

At  least 10 private banks such as Tencent-backed WeBank, MYBank, Chongqing  Fumin Bank, Suning Bank, NewUp Bank of Liaoning and Blue Ocean Bank have issued intelligent deposit products, Securities Daily reported. Other players that have released similar products include Z-Bank, Yilion Bank, Fujian Huatong Bank and Hunan Sanxiang Bank.

The  products are typically three-year or five-year term deposits, though  depositors can often withdraw early at an interest rate of around 4.5 percent, which is higher than those of traditional banks.

WeBank  allows depositors to put in at least CNY50 (USD7.3) and enjoy an  interest of up to 4 percent after one month. Specifically, the deposit  interest rate is 2.8 percent within one month and 4 percent between one  and three months, rising in increments of 0.1 percentage point to reach  4.5 percent for withdrawals between one and five years.

Such  products also allow unlimited lump-sum or partial withdrawals with the  principal and interest transferred to the depositor in real-time. When  the five-year term deposits expire, the principal and interest are  transferred to WeBank cards. 

Yilion  Bank offers the Yongyicun product which gives depositors a 5.45 percent  annual interest rate for a five-year term and 4.5 percent for  withdrawal in advance.

Chongqing  Fumin Bank's Fuminbao provides a five-year personal savings product. To  guarantee the liquidity and high yields, depositors who choose to make a  withdrawal in advance actually transfer the right to yields of the term  deposit to a third financial service institution which cooperates with  the bank. Fuminbao's annual interest rate is 4.8 percent for withdrawal  upon expiration and 4.2 percent for withdrawal in advance.

The  report found that products generally have low deposit thresholds of  between CNY50 and CNY100, while some commercial lenders limit the amount  that can be withdrawn in advance each day.

Many  private banks have a 'last in and first out' rule for withdrawal, which  means the most recent deposit will be withdrawn first and interests are  calculated for the withdrawn amount.

Private  banks mainly conduct their business online, saving them a lot in store  and labor costs, insiders said. Many private banks deal mainly with  small-scale loans with high interest rates, so their intelligent  deposits enable banks to attract more long-term deposits to support  their current lending, which also covers the cost of interest on the  products, they added.