Is it wise to choose rural credit cooperatives and savings banks for deposits these days?
In today's world, with the rapid development of the economy, even people in remote villages have to face a variety of financing options. In this context, how can some farmers who save find a suitable place to save for themselves?In particular, the choice between the two major financial organizations of the "Three Rural Areas" -- the rural credit cooperatives and the village and township banks -- is not only a simple economic decision, but also related to their consideration of their future livelihood security and income.
Historical background and causes of savings and wealth management.
The dilemma faced by farmers in the face of savings banks is due to a number of reasons. First of all, the banking business in China's rural areas is generally low, and many people lack understanding of various wealth management products, which is also one of the reasons why they buy wealth management products. Secondly, the main body of agricultural production and operation with peasant households as the main body, the peasant households as the main body, the rural households as the main body, and the rural households as the main body. Because it has basic businesses such as savings and loans, it has become the first choice of the majority of farmers. In this context, due to its own characteristics, its business is closer to the actual needs of farmers. However, they are constrained by their own scale, strength and other factors, and both the business level and risk management and control need to be improved. At the same time, the joint-stock commercial bank is also a large-scale joint-stock commercial bank, with a more sound operating mechanism and a broader business scope, which has brought more convenience and choices to the lives of the vast number of peasants.
Read more: Access to financial services in rural areas is very limited compared to in urban areas. In China, many farmers know little about wealth management products, mainly because of their information dissemination channels and lack of financial knowledge. This leads to a lack of knowledge and experience in savings banks. In China, in the economic development of the "three rural" represented by the "three rural" and "three rural", the "three rural" problem is becoming increasingly prominent. The cooperatives are very reputable in the local area and are trusted by farmers. Because of its cooperative characteristics, it is more closely related to the practical needs of the vast number of peasants. The model is based on the cooperation between local farmers and farmers, facing the majority of farmers, and is a financial organization of farmers themselves. However, they are constrained by their own scale and strength, and are lacking in operation and risk control. The Agricultural Commercial Bank is one of the four major large state-owned enterprises in China, and its operating mechanism is more sound and its business scope is broader, which can bring great convenience to the lives of the broad masses of peasants.
Each has its advantages and disadvantages.
From the perspective of the security of deposits, both have their own advantages and disadvantages. From the perspective of savings security, although in rural credit cooperatives, the principal and interest of savings below 500,000 yuan can be fully compensated, but because of their small scale and weak risk prevention ability, the security of their savings is not high. In stark contrast, state-owned commercial banks are able to provide depositors with the same guarantees, as well as their own security.
Expansion: There is a significant difference in the degree of deposit security between the two compared to savings banks. The Rural Cooperative Bank guarantees full payment of savings up to 500,000. In this way, the safety of peasant households' savings deposits is guaranteed. However, the scale and strength of China's rural credit cooperatives are relatively weak, and the ability to resist risks is also relatively weak, resulting in the low security of their savings. In stark contrast, state-controlled savings banks are able to provide safer savings to depositors by virtue of their strength and scale. On the premise of ensuring that the insurance coverage remains unchanged, a relatively complete business system has been established, which has played a very good role in preventing and controlling risks.
In terms of deposit interest, in order to attract more depositors, the village cooperative generally gives a higher interest rate. However, whether such high interest rates can continue to operate in a stable manner still needs further research. In stark contrast, although its interest rate is relatively low, it is favored by depositors because of its stability and reliability.
Extension: In general, rural cooperatives give higher interest rates than savings banks, which is one of the reasons why they are willing to keep their money in cooperatives. By raising the interest rate on their savings, farmers have created conditions for future development. However, whether such a high interest rate can be sustainable and stable is a question that needs to be considered. Because it is relatively small in size and has a relatively narrow financing path, it will not have a high interest rate for a long time. In contrast, although savings banks have relatively low interest rates, they are popular with depositors because of their stability and reliability. Large commercial banks are the most representative of China's large commercial banks, and their financing is more diversified and stable.
In terms of convenient access and access, the postal bank has branches all over the country and has a complete online financial business, so that customers can enjoy more convenient financial services. Depositors can make deposits and withdrawals at any time, anywhere, and from any place, so that they can enjoy the same convenience in both urban and rural areas. However, in China, the business outlets of rural credit cooperatives are relatively scarce, especially in the business of depositing and withdrawing money in other places, which have great limitations.
Expansion: The Savings Bank has many branches, and people can easily find its business location in both urban and rural areas. In addition, the savings bank also has a relatively complete electronic financial business, and customers can make deposits and withdrawals through electronic devices such as mobile ** and computers, which is very convenient. Due to their relatively small scale, the layout of rural credit cooperatives is relatively limited, especially in the business of storing and withdrawing in other places. This has brought great difficulties to peasant households' deposits and withdrawals, thus restricting their enthusiasm and enthusiasm for deposits.
How exactly to choose?
In general, both banks have their own advantages, so it is up to each one to decide on the actual needs and actual conditions.
If you care about the safety of your deposit and you don't need too much interest, you can choose to save money. ICBC is a large state-owned enterprise with a more sound operating mechanism and a broader business scope, which can provide customers with more powerful support and convenience.
If you have a high interest demand and want your savings to be secured, but at the same time take some risk, then Village Union Bank may be more suitable for you. Although the interest rate on deposits of rural credit cooperatives is generally higher than that of ordinary savings banks, the degree of security of their deposits is not high due to the constraints of their own scale and financial resources.
You can also choose according to your own special needs. If you have a higher need for the security and interest of your deposits, you can put your money in a village cooperative or savings bank. In this way, you can not only enjoy the high interest rate of the rural credit cooperatives, but also take advantage of the stability and reliability of the savings bank to improve the security of deposits.
Before you make a decision, it's a good idea to know more about your rural cooperative and savings bank, and to consult with experts so that you can better decide where to invest. The most important thing is to weigh its advantages and disadvantages according to your specific situation, and then choose the most suitable savings method for yourself.