There are 3 things to pay attention to in fixed deposits, to avoid the risk of interest loss, and to pay attention to deposits!
There are 3 things to pay attention to in fixed deposits, to avoid the risk of interest loss, and to pay attention to deposits!
A fixed deposit is a deposit in which the bank agrees with you on the term and interest rate of the deposit, and you receive the principal and interest on the maturity date. The interest rate on fixed deposits is slightly higher compared to fixed deposits, so many people choose fixed deposits, but there are three points to be aware of.
First of all, fixed deposits are relatively safe. Bank deposits are protected by law, and funds worth 500,000 are protected even if the bank goes bankrupt. However, when buying a fixed deposit, you should pay attention to the following aspects:
Beware of turning deposits into financing.
Maybe you or someone close to you has already had an experience like this:
You go to the bank to make a deposit and want to manage your money regularly, but the bank staff recommends certain high-yield wealth management products to you, which have gifts or higher returns. If you are highly profitable, you will save it casually, and you can't withdraw the money in an emergency, or you will lose the principal if you don't have a good income.
This kind"Slap in the face"Deposits for wealth management or insurance are not uncommon. Now, bank wealth management no longer promises to protect the capital, and the citizens who attach importance to the preservation of the capital should not be deposited at high interest rates.
Automatic deposits. If you have a fixed deposit, don't forget to ask your bank if they have an auto-renew service. In this way, the fixed deposit can be automatically carried over to the next instalment after maturity, and even if you forget the maturity date, it will not affect the deposit income. This is a very handy tip.
If you do not request an automatic rollover, the fixed deposit will become a demand deposit on the maturity date, which means that the depositor will lose interest. After all, demand interest is much lower than regular interest. So, pay attention to this so that you don't lose interest.
In addition, it is important to keep an eye out for changes in bank fixed deposit rates. Interest rates have risen and fallen, and if the deposit rate is high now, and the interest rate does not change or even rises after maturity, then you can rest assured.
However, if the interest rate drops after maturity, you need to withdraw your money quickly and deposit again at a higher interest rate to ensure that you don't lose interest or earn more interest.
Pay attention to changes in deposit rates.
In recent years, deposit rates have been falling, while prices have been the same. Perhaps in the past, a two-year fixed deposit with some small and medium-sized banks could hold its value, but now it is more feasible to choose a three- or five-year fixed deposit to preserve its value with an interest rate of 3% or higher.
If savers don't pay attention to changes in interest rates, they will find themselves seemingly rising interest rates, but in fact the more they save, the less valuable they are, resulting in a decline in real purchasing power.
Don't let your savings sit idle.
You've often heard that you earn interest by keeping your money in the bank. However, many people forget to keep an eye on their savings after depositing their money in the bank. In fact, it is risky to do so.
First of all, some banks don't have a convenient way to transfer money. If you don't realize it, interest can be calculated at the mobilization rate when transferring money. For example, if you have a fixed deposit but have been unmanaged for a long time, you will miss out on the opportunity to enjoy higher interest rates.
Secondly, some banks offer auto-renewal. This may seem like a money-saving, but it also brings new problems. The interest rate on an auto-rollover deposit is usually calculated based on the fixed deposit rate of the day and is not high. What's more, opting for auto-rollover loses other advantages, as the interest rate on the deposit, which was already fixed at the time of deposit, may become very low at maturity.
Flatly. Generally speaking, fixed deposits are not complicated, but they are a solid option. You can earn a certain amount of interest on your bank deposits, and it is not difficult to make money. However, in order to protect our own interests, we need to pay attention to the above"Three don'ts"to avoid potential losses. Time deposit.