Since 2023, domestic banks have cut deposit rates four times in a row, causing deposit rates to fall to historic lows in recent years. For households with more than 300,000 deposits, this means a reduction in interest income from deposits. As interest rates continue to fall, the reduction in interest on larger deposits will be more pronounced. Therefore, households with more than 300,000 deposits will face the dilemma of how to deal with their deposits to generate better returns after 2024.
The main purpose of the banks' reduction of deposit interest rates is to encourage residents to withdraw their deposits for consumption and investment, so as to stimulate economic development. However, this can be a problem for families with high savings. Because their savings themselves are already abundant, they don't have much need for spending or investment. In addition, due to the pandemic and uncertain employment situation, many households are more inclined to keep cash than to earn income through consumption or investment.
Faced with declining deposit rates and a lack of demand for consumption and investment, families with more than 300,000 deposits need to find solutions to protect and grow their wealth.
As a result of loose monetary policy, a large amount of money flowed into the financial and commodity markets. This has led to a constant increase in the number of goods related to the lives of the inhabitants and an increase in inflation. The decline in deposit interest rates has reduced the purchasing power of deposits. For families with deposits of more than 300,000 yuan, it is particularly important to avoid inflation risks and maintain the value of assets.
First of all, depositors can consider buying investment products such as large-denomination certificates of deposit, structured certificates of deposit, and treasury bonds. Although the yields of these investments may not be fully inflation-resistant, they are, at least relatively speaking, higher than fixed deposits.
Secondly, depositors can actively pay attention to other financial instruments and investment channels, such as **, foreign exchange, **, etc. However, investment needs to be cautious and should not be rushed. Especially for savers who lack investment experience, they should choose carefully, fully understand the balance between risk and return, and avoid losses caused by blind investment.
Finally, savers can also consider investing in real assets to hedge against inflation risk. For example, the purchase of real estate, ** art and other physical assets, these assets have a strong potential for value preservation and appreciation. However, investment in real assets also needs to be fully researched and evaluated to avoid the risks associated with blind investment.
Due to the decline in deposit rates, many savers have begun to turn to investment and wealth management in search of higher yields. However, for most savers who do not have sufficient experience and expertise, investing in financial management is not an easy task.
First and foremost, savers should be clear about their risk tolerance and investment goals. Investing requires a plan that is tailored to one's financial situation, age, and investment goals. Different people have different risk appetites and should choose investment products that are suitable for them.
Secondly, savers should conduct sufficient research and understanding to choose reliable financial institutions and products. For novice investors, they can choose to be managed by professional financial institutions to reduce risks and increase returns.
Finally, for families with deposits of more than 300,000 yuan, they should allocate their investment portfolios reasonably according to their actual situation. Don't put all your eggs in one basket, diversify your investments to reduce the risks of a single investment.
Faced with difficulties in employment and economic recession, some people choose to start a business to seek a way out. However, the current entrepreneurial environment is not optimistic, and families with savings of more than 300,000 yuan should carefully consider the risks of starting a business.
First, due to economic difficulties and an unstable employment situation, spending power has weakened, and the business prospects of entrepreneurs have become more uncertain. There are already a large number of competitors in the market, especially some industries have a serious surplus, and the pressure to survive after joining is extremely high.
Secondly, entrepreneurship requires a lot of human, material and financial resources, and faces a high risk of failure. Even if you succeed in starting a business, you will need to face rising expenses such as rent and personnel costs, which may put greater pressure on performance and profits.
Finally, savers who lack entrepreneurial experience and management skills may face greater difficulties. Entrepreneurship requires comprehensive knowledge and skills, and an in-depth understanding and grasp of the market, capital, manpower, etc. Without adequate preparation and literacy, the chances of success in entrepreneurship will be greatly reduced.
To sum up, households with more than 300,000 deposits will need to protect and grow their wealth from 2024. In the face of declining deposit interest rates, inflation risks, investment and financial management and entrepreneurial risks, savers should be clear about their risk tolerance and investment goals, choose appropriate investment products, diversify investment risks, and avoid blind action. At the same time, savers can also avoid inflation risks by purchasing physical assets and other ways to preserve and increase the value of assets. In the face of challenges and troubles, rational thinking and prudent decision-making can protect one's own money bag.