Recently, the major state-owned banks Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank officially announced the reduction of the listed interest rate on deposits, which is the third round of deposit "interest rate cuts" this year, and it is likely to continue. This means that the interest on the deposit is further reduced, and the loss is more pronounced for those who have a larger deposit amount. The reason why banks want to cut interest rates is to support the development of the real economy and reduce the loan pressure on enterprises. However, this also means that the interest on our deposits will be less and less, and the banks will use this to improve their performance. Chinese generally like to save money, as of November this year, the balance of RMB deposits is nearly 284 trillion yuan, and deposits have become the money bags of our people. In the face of the general trend of interest rate cuts, how should we defend our wallets?
1. The role and interests of banks
Banks survive by earning the difference between deposits and loan interest rates, and the reduction of deposit interest rates is a strategy of banks to reduce the interest rate on corporate loans. However, the rate cut is not good for us depositors. Banks seek to maximize profits, so they will reduce the interest on our deposits to meet their own needs. This is why the general trend of interest rate cuts will lead to less and less interest on our deposits.
2. Diversification of investments
In addition to deposits, there are other ways to invest to protect your wallet. For example, consider buying savings insurance or investing in bonds**. These investments are not only low-risk and robust, but also able to achieve continuous positive returns.
1. Deposit vs Savings Insurance vs Bonds**
As savers, we need to compare the pros and cons of different investment methods. Deposits are preferred by many people because of their lower risk and fixed interest income. However, deposit rates are falling, holding income is decreasing, and there is no flexibility to withdraw cash. Savings insurance is a relatively common investment method, with a relatively high average annual return and low risk. However, it is necessary to pay continuously for a period of time to obtain a significant profit, and it is not possible to withdraw the funds saved during the payment period. Bonds** is an investment that allows for continuous positive returns, ensuring stability by investing in the highest grade AAA bonds. Compared to deposit and savings insurance, the advantage of bonds** is that they can be withdrawn at any time.
2. Alipay's privileges and advantages
As a Fortune Black Card user on Alipay, I found a lot of privileges when purchasing products. For example, black card users enjoy free cash withdrawals of up to 300,000 yuan, which greatly facilitates the turnover of funds. In addition, black card holders can enjoy a discount on the rate when purchasing a public and private sale**, which can save a certain amount of costs. Moreover, there are some bonds with continuous positive returns** on Alipay, due to the high grade of the bonds invested, there are no losses in history, and the income is stable and reliable. In addition, Alipay also provides timely interpretation of industry trends and macro policies and other services to help users make better investment decisions.
Through the analysis of the phenomenon of interest rate cuts and the evaluation of different investment methods, we can draw the following conclusions: the reduction of deposit interest has become a general trend, and we depositors need to find other investment methods to protect our money bags. Bonds with continuous positive returns** have higher yields and lower risk than deposit and savings insurance. In addition, as a wealth black card user on Alipay, you can enjoy more privileges and advantages, such as free cash withdrawals, fee discounts, and professional investment interpretation services. In the face of interest rate cuts, we should actively look for better ways to invest to protect and grow our wealth.