Chinese lenders are in fierce competition to attract savers after the central bank raised the deposit rate ceiling.

Smaller lenders such as Shenzhen Development Bank and Huaxia Bank raised their one-year deposit rates to 3.575 percent, a day after the Big Five lenders raised the interest rate they pay to savers to 3.5 percent.

The Big Five lenders are: Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications.

The People's Bank of China last week cut interest rates for the first time since 2008, in a bid to tackle slowing growth. The benchmark one-year saving rate was cut to 3.25 percent from 3.5 percent.

Commercial banks were also allowed for the first time to set deposit rates higher than the benchmark. They got permission to set their deposit rates up to 1.1 times the benchmark.

gaochangxin@chinadaily.com.cn