Do you still save money?Deposit 10,000 to withdraw 9,800, economists recommend that depositors give

Mondo Finance Updated on 2024-01-31

Both economists and Mr. Wu Mouping said that it is inevitable to keep reducing the interest rate on deposits. However, for the average saver, this is a confusing thing. We often hear that the main means of profit of the state-owned banks is borrowing, and they use our deposits to make loans. This means that, as depositors, we are effectively creditors of the bank. The interest paid by the bank is actually a return to the creditor (depositor). Now, however, the situation is completely different. Suppose I lend 10,000 yuan to the bank, and a year later the bank only pays me back 9,800 yuan, and not only do I not get a return, but I also lose 200 yuan. It's like if I lent you 10,000 yuan and repaid me 9,800 yuan a year later, I lent you money with the intention of getting a return, why should I lend it to you at a loss?

Lowering the interest rate on deposits means that savers will have to pay more to save money. Saving money was originally meant to increase wealth, but now it has become a loss-making behavior. This will undoubtedly weaken the motivation and motivation of savers, leading more people to choose other forms of asset investment instead of depositing their money in the bank. In this case, banks will be at risk of losing large amounts of deposits, which is also a challenge for banks.

In the article, Mr. Wu Mouping proposed a solution, which is to reduce the interest rate to minus 2%. This is a very creative idea, but an extreme case for the average depositor. If the interest rate on a depositor's deposit is negative, it means that they have to pay a certain fee to the bank. This will further increase the burden on depositors, making deposits even less cost-effective and putting them in greater distress.

Economists say that if a negative interest rate policy is implemented, the human economy will enter an unprecedented era. It also makes us wonder whether the development of the times will further exacerbate the inequality in the distribution of wealth. For those who are wealthy, negative interest rates are not too much of a problem because their asset allocation is more flexible and can be maintained and increased in other ways. For the average saver, negative interest rates will only add to the burden and further widen the wealth gap.

In the face of the continuous reduction of deposit rates, how should ordinary savers respond?On the one hand, you can look for investment methods with a more return rate, such as **, etc. Higher returns can be achieved by investing money in these areas. However, investing also comes with risks, so the average saver needs to have a certain amount of financial knowledge and risk tolerance. On the other hand, there is the option to transfer a portion of the funds to internet financial platforms, which tend to offer higher interest rates than traditional banks. Of course, you also need to be cautious when choosing an Internet financial platform, and you should choose a formal and credible platform.

Faced with the continuous reduction of deposit rates, I can't help but think about my financial planning and financial management. In the past, deposits were a way for me to maintain and increase my value, but now that deposit rates are falling, I feel a little lost. In the article, economists and Mr. Wu Mouping gave some suggestions, such as turning to other areas of investment, or choosing an Internet financial platform. I realized that I needed to be more proactive in understanding and learning about finances to improve my financial skills. At the same time, I also need to be vigilant and choose legitimate and credible investment channels to avoid falling into the trap of illegal fundraising or fraud. In short, the growth of wealth requires us to actively explore and try, and in the face of changes, we need to remain rational and calm and make financial decisions that suit us.

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