In modern society, people's financial management concept is getting stronger and stronger, and bank fixed deposits are one of the favorite ways for ordinary people to save. There are many types of bank fixed deposits, including lump sum deposits, lump sum deposits, lump sum deposits, etc., and there are certain differences in these deposit methods. What should I pay attention to when depositing and withdrawing fixed savings?
Lump sum deposit refers to the method of depositing a sum of funds in the bank and withdrawing the principal and interest in a lump sum after the expiration of the agreed period. Lump sum fixed savings require a certain minimum deposit amount, and the deposit period is divided into three months, six months, one year, two years, three years and five years. Fixed deposits are less flexible and allow money to earn more for a fixed period of time, but it cannot be withdrawn at any time.
Lump sum is suitable for long-term savings and is suitable for long-term savings that do not need to be used for a longer period of time. In the period of low interest rate, the deposit period should be correspondingly longer, and those who can save for 5 years should not be deposited and withdrawn in stages, because the characteristics of savings income in the case of low interest rate are "the longer the deposit period, the higher the interest rate, and the better the return".
In a lump sum deposit, both the principal and interest remain the same, so the interest accumulated before will be taken into account when calculating the interest, resulting in a compounding effect. Although the compounding effect may seem small, it can have a surprising effect over time and as the principal increases.
Therefore, before depositing time deposits, you must plan your funds well in advance and try to avoid withdrawing your time deposits in advance. If the lump sum deposit does not expire and is withdrawn in advance, the interest will be calculated according to the current interest rate, which means that if the user withdraws it in advance before the specified period is completed, it means that the user will lose an interest income, which is not cost-effective.
In conclusion, when considering a deposit method, you should weigh various factors according to your individual's funding needs and tenure to achieve the best financial benefits. If you want to get more income without having to use your principal during the deposit period, it is wise to make the most of the compounding effect and grow your money.