What’s the Real Difference Between Deposits and Savings in Chinese Banking?

1

Deposit vs Savings

In Chinese banking, the terms “deposit” and “savings” are often mixed, but they have distinct meanings: deposits are generally associated with units (organizations), while savings refer specifically to individuals.

The confusion arises because many account types—such as term, demand, margin, and internal accounts—use overlapping terminology. The Regulation on Savings Management defines savings as activities where an individual places RMB or foreign currency in a savings institution, receives a passbook or certificate, and can withdraw principal and interest; the institution pays the interest according to regulations.

This definition makes it clear that savings are personal. Later, the People’s Bank of China’s Measures for the Administration of RMB Settlement Accounts specify that a settlement account is essentially a current deposit account .

According to a PBOC official’s Q&A, the basic function of a savings account is to store principal and withdraw interest, and it does not support fund settlement functions. Savings business can handle current savings deposits, fixed‑term savings, zero‑deposit‑full‑withdrawal, and principal‑interest‑withdrawal services, which are all considered “deposit products” from the bank’s perspective.

Because savings accounts cannot be used for payment settlement, most users now operate settlement accounts. In summary, “deposit” is a broader term covering both individuals and units (e.g., “RMB current deposit account,” “unit term deposit account”), whereas “savings” is limited to “personal savings account.”

2

Term vs Current

Deposits linked to units are generally current accounts, while savings are personal. The key distinction is that “savings” is limited to individuals and lacks settlement capabilities; to settle funds, one must open a personal settlement account, which is itself a type of deposit account.

Term and current accounts are two types of deposit products distinguished by whether a withdrawal period is agreed upon. For personal savings products:

Current (demand) accounts : customers deposit funds without a fixed withdrawal date and can withdraw or transfer at any time, with no limit on amount.

Term accounts : include whole‑deposit‑whole‑withdrawal, zero‑deposit‑full‑withdrawal, notice deposits, etc., each with a predefined maturity.

For unit deposit products, the same categories exist: unit current deposits (unit RMB settlement accounts) and unit term deposits (whole‑deposit‑whole‑withdrawal, notice deposits, agreed deposits). The main difference lies in the account holder’s attribute—individual versus corporate.

Clarifying these concepts makes it much easier to map and analyze the broader public‑sector RMB account system.