In recent years, with the development of the financial market, bank fixed deposits have become a popular way to manage money. For both banks and depositors, choosing the right fixed deposit method is crucial. Among them, fixed deposits with and without books are two common options. What's the difference between having a book and not having a book?It's important for savers to understand these differences when using fixed deposits.
Let's find out that there is a book fixed deposit. As the name suggests, a book-based fixed deposit is a deposit method that requires a passbook or certificate of deposit. When applying for a fixed deposit, the bank will open an account in the bank for the depositor specifically for deposits, and provide the corresponding passbook or certificate of deposit. Every time a depositor makes a deposit or withdrawal, he or she needs to carry a passbook or certificate of deposit with him. The biggest advantage of having a book fixed deposit is that it can easily manage and inquire about the deposit to ensure the safety and accuracy of the account. Moreover, even if the passbook or certificate of deposit is lost, the depositor can report it to the bank in time to avoid losses.
In contrast, a bookless fixed deposit is a deposit method that does not require a passbook or certificate of deposit. When applying for a fixed deposit without a book, the bank will directly record the depositor's deposit in the electronic account and do not provide a physical book. Depositors only need to present valid documents such as ID cards every time they deposit or withdraw money. Compared with a book-based deposit, a bookless fixed deposit is more convenient and fast. Depositors do not need to worry about the loss of passbooks or certificates of deposit, and it is more convenient to carry out cross-regional or cross-bank operations. In addition, the flow of funds without a book deposit is more rapid, which can better meet the capital needs of depositors. In addition to the differences in use, there are also slight differences in the way interest is calculated between book-based and bookless fixed deposits. Generally speaking, the interest on a book-based time deposit is settled on a quarterly or annual basis, while the interest on a bookless time deposit is usually settled on a monthly or quarterly basis. Although the difference is not large, choosing the right interest calculation method according to your needs can maximize the return on your deposit.
Next, let's take an example to illustrate the difference between a fixed deposit with a book and a fixed deposit without a book. Xiao Ming is a white-collar worker, and a part of his monthly salary is deposited in the bank. He once chose to have a notebook for a fixed deposit, but he often felt inconvenient because he often forgot to bring his passbook. Later, he heard about the more convenient way of depositing without a book, so he decided to give it a try. He uses mobile banking to operate, which not only saves the trouble of carrying a passbook, but also allows him to deposit and withdraw money at any time and place. Xiao Ming deeply felt the convenience and efficiency of the bookless fixed deposit.
To sum up, there are differences in the way of use, interest calculation and convenience of bank fixed deposits. For savers, choosing the right fixed deposit method needs to be considered according to their own needs. If you pay more attention to security and management when depositing and withdrawing money, then having a book fixed deposit is a good choice. If you pay attention to the convenience and flexibility of operation, then the no-book fixed deposit is more suitable. Savers should choose the fixed deposit method reasonably according to their preferences and needs to maximize the benefits of financial planning.