Since 2023, there have been two glaring problems in the domestic deposit market. On the one hand, residents' enthusiasm for saving is increasing due to the need to deal with emergencies such as unemployment and the pandemic. Data released by the central bank showed that household deposits increased by 14 percent in the first three quarters of 202342 trillion yuan. On the other hand, interest rates on bank deposits are falling. Since the beginning of this year, domestic banks have cut interest rates four times in a row, and the current deposit interest rate has been reduced to less than 3% for 3-year deposits and less than 2% for 1-year deposits. Bank deposit rates are already at historically low levels. The purpose of the bank's deposit rate reduction is to encourage depositors to withdraw funds from the bank for consumption and investment in order to boost the economy. However, the implementation of interest rate cuts has also led to a slowdown in the pace of deposit growth in recent months.
From 2024 onwards, households with savings of more than 300,000 yuan need to pay attention to three main issues. First, inflation has led to a constant decline in the purchasing power of deposits. As a result of China's accommodative monetary policy, a large amount of new money has entered the financial markets, but some has also flowed into the commodity market. As a result, commodities related to people's livelihood are depreciating every year, and the purchasing power of depositors in bank deposits is constantly depreciating. In addition, deposit rates are getting lower and trending downward, and it is unlikely that they will be able to fight inflation with deposit interest alone. Therefore, savers should consider how to avoid the loss of their assets from inflation as much as possible. If you don't like to take investment risks, you can consider buying investment products such as large-amount certificates of deposit, structured deposits, and treasury bonds. Although the yield of these investments may not exceed inflation, at least the yield is higher than that of fixed deposits.
Secondly, depositors should carefully choose investment and wealth management products. At present, due to the decline in bank deposit interest rates and prices, many depositors choose to withdraw their funds from their bank accounts and invest in high-yield products such as **, foreign exchange, **, etc. However, the current investment environment is not ideal, and if investors act blindly, the possibility of losing money is high. In addition, most savers lack basic financial knowledge and experience, and losses are inevitable if they invest in unprofitable capital markets. In contrast, depositing funds in a bank guarantees the safety of principal and interest.
Also, don't get involved in entrepreneurship lightly. At present, many people are facing the dilemma of unemployment and difficulty finding jobs, coupled with the continuous decline in bank deposit rates, they may choose to start their own businesses. However, starting a business is very risky. First, there is a decline in spending power due to people's reduced incomes or unemployment. Second, there is a serious surplus in all walks of life, and the competition among peers is fierce, and entrepreneurs often struggle to survive. In addition, the rents of factories, office buildings, shops, etc. remain high, and even if entrepreneurs can make some money, they will be taken away by landlords. Therefore, starting from 2024, families with deposits of more than 300,000 yuan need to carefully choose less risky ways to preserve and increase the value of their deposits as much as possible. Don't invest and manage your money lightly, let alone start a business blindly. Because in the current environment, there are great risks in investment and entrepreneurship. Ensuring the safety of the principal is the most important thing.
From 2024 onwards, families with deposits of more than 300,000 yuan need to pay attention to the declining purchasing power of deposits, prudent choice of investment and financial management, and cautious entrepreneurship. Due to monetary easing and a low interest rate environment, the purchasing power of depositors' deposits has been depreciating. In this case, savers can consider buying other investment products to maximize the return on deposits. In addition, investors should maintain a cautious attitude towards the investment market and avoid losses due to blind investment. Similarly, don't get involved in entrepreneurship lightly, in a highly competitive market environment, entrepreneurship is very risky. In 2024 and beyond, savers should choose low-risk ways to preserve and grow their deposits as much as possible to ensure the safety of their principal.