Double benefits of interest reduction and discounts: Save on your credit card installment again

The festive atmosphere is gradually fading, and the pressure of bills after the long Spring Festival holiday is quietly approaching. On February 24, the first day back to work in the Year of the Horse, Beijing Business Daily reporters found that, supported by fiscal subsidy policies, many banks are intensively increasing credit card installment discounts through discounts, coupons, lotteries, and other “real cash” subsidies to reduce residents’ credit pressure and help boost the consumer market.

Double Benefits of Credit Card Installments Come Together

On the first day back to work, Beijing Business Daily reporters noticed that many consumers shared their credit card installment bills on social media. A consumer from Liaoning shared that their nearly 40,000 yuan bill was paid over 24 installments, with the first installment interest at 56.38 yuan. After combining the fiscal subsidy, the interest for each installment was further reduced by 17.19 yuan. “The bank gave a 21% discount coupon for installments, making the annualized interest rate about 3.26%. When the bill was issued, an additional 1% fiscal subsidy was applied, reducing the actual annualized interest rate to 2.26%. It’s really cost-effective.” Another consumer from Beijing said that their 20,000-plus yuan installment bill, paid over 12 installments, benefited from both the bank’s installment discount and a 1% fiscal subsidy, lowering the annualized interest rate from about 3.06% to 2.06%.

Beijing Business Daily’s investigation found that such discounts are not isolated cases but are common responses by banks to policies, proactively offering benefits. Through policy dividends and market activities working together, they effectively reduce residents’ consumption burdens.

For example, Bank of China recently launched the “Enjoy Huge Discounts on Installments, Additional Subsidies” activity. From January 1 to February 28, domestic personal credit cardholders (excluding corporate and corporate cards) can enjoy relevant discounts when applying for bill installments, free installments, or consumption installments through official channels, subject to system approval. Additionally, customers eligible under the fiscal subsidy policy, whose installment interest is recorded within the policy period, can enjoy an extra 1% annual subsidy.

Nanjing Bank offers limited-time discounts from January 1 to June 30 for normal personal credit card holders (excluding special installment cards like Xin Installment and Salary Easy). For bills paid over 12 installments or more, customers can enjoy a 30% special installment rate, reducing the original annual interest rate of about 14% to around 4.40%–4.57%. Guilin Bank also launched the “Surprise Installments, Starting at 30% Interest Rate” promotion, where invited users can apply via mobile banking, Meituan App, or SMS from February 1 to 28. The minimum installment amount is 300 yuan, with flexible options from 3 to 24 installments, and the lowest rate can be as low as 30%.

Some banks have also launched installment lottery activities. For example, China Merchants Bank launched the “New Year Lucky Draw, Installment Coupon Rewards” activity from February 1 to 28. Users who perform installment repayments or check installment eligibility on the official platform will see a pop-up “Eligibility Confirmed, Click to Draw” red envelope, allowing them to win coupons for installment interest discounts of 200, 108, 68, or 65 yuan. Guangzhou Bank offers a reward for reaching installment targets, where customers who accumulate installments of 15,000 yuan or more can participate in a draw for a red envelope worth up to 666 yuan.

In addition to bank discounts on installment rates, fiscal subsidy policies provide consumers with double benefits. On January 20, the Ministry of Finance, the People’s Bank of China, and the Financial Regulatory Administration jointly issued a notice clarifying the optimization of personal consumption loan fiscal subsidy policies. After the new policy was announced, many banks responded quickly, releasing detailed implementation rules and Q&A guidelines, with some institutions opening channels for applying for credit card installment subsidies to ensure rapid policy implementation.

According to the policy, the subsidy period for personal consumption loans is from September 1, 2025, to December 31, 2026. The subsidy period for credit card installment bills is from January 1, 2026, to December 31, 2026. Each borrower can enjoy a maximum subsidy of 3,000 yuan for both personal consumption loans and credit card installments from the same financial institution.

Wu Zewei, a special researcher at the Shanghai Finance and Development Laboratory, said that the combination of fiscal subsidies and bank installment discounts will create a dual effect of policy and market, effectively boosting credit card installment transactions and stimulating residents’ willingness to consume.

“The policy’s precision lies in directly reducing residents’ credit costs through fiscal subsidies, significantly lowering the annualized interest rate for installments, and providing tangible relief effects. This encourages consumers to convert large expenditures into installment payments. From a macro perspective, this move helps open up the income and consumption confidence cycle, turning the sustained enthusiasm for Spring Festival consumption into internal demand growth, and providing strong support for the recovery of consumption in the Year of the Horse,” Wu said.

Consumers Should Understand the True Annualized Rate

Although fiscal subsidies and bank discounts benefit consumers, many users still feel confused in practice: different banks have varying discount rules, installment rates differ among users, and the stacking of subsidies and discounts makes it difficult for many to understand the actual costs—lacking a clear picture of how much they save and their real funding costs.

From the credit card installment rate rules published by various banks, low discounts are not available to everyone. For example, some banks specify that their activities are limited to “invited users,” and others note that “the applicable installment periods and rates are subject to the actual application page.”

Wu believes that, given the pricing differences among banks and users, and the complexity of calculating rates after stacking subsidies, banks should fulfill their obligation to disclose information transparently. They should prominently display the comprehensive annualized interest rate in installment contracts, rather than just low discount rates or monthly payments, so consumers can clearly compare the costs of using funds.

For ordinary consumers, Wu recommends that the key indicator for judging whether an installment is truly cost-effective is the actual annualized interest rate, not the discount rate or monthly payment. Consumers should proactively ask bank customer service to disclose the annualized rate after all discounts are applied. They should also pay attention to hidden costs such as early repayment penalties, remaining fees, and subsidy qualification and settlement rules to avoid unexpected financial burdens caused by information asymmetry.

Zeng Gang, chief expert and director at the Shanghai Financial and Development Laboratory, provided more detailed advice. He said banks should use “transparency and standardization” to eliminate information gaps: first, prominently display the true annualized interest rate (IRR) on the installment application page, rather than just listing monthly rates or discounts, and also show the actual annualized rate after subsidies; second, unify the disclosure standards, clearly differentiate between bill, consumption, and cash installment differences, and avoid vague concepts; third, provide a one-click installment calculator where users can input amounts and periods to see total costs and true annualized rates at a glance. “Ordinary users need to understand the real annualized interest rate, clarify the rules and details, confirm whether there are remaining fees for early repayment, subsidy qualification, and settlement rules, and compare the annualized rates across different banks’ credit card installments. Prioritize using installments for necessary large expenses and avoid blind installment consumption,” Zeng added.