As the new year approaches, many small and medium-sized banks have raised their fixed deposit interest rates to attract depositors' capital inflows. However, for those who hold fixed deposits, there are several preparations for the next year that should not be overlooked. First of all, it is advisable for savers to have a certain amount of cash reserves to ensure sufficient liquidity in the coming years. Although fixed deposits can lock in interest rates, in the event of unexpected unemployment, illness and other unexpected circumstances, when you need to withdraw cash in advance, the deposit must be calculated at the current interest rate, which will cause interest losses. Therefore, savers should keep a portion of their cash and then put the rest into a 3-year fixed deposit, which can reduce the risk of cash flow.
Expansion: In addition to recommending that savers keep a portion of their cash in case of emergencies, they can also plan their cash use reasonably to ensure the normal operation of their lives. For example, you can set up an emergency reserve account, deposit a certain amount of cash into it, and update the deposit amount regularly. In this way, the funds can be used and disposed of quickly in unexpected situations, reducing possible economic pressures. In addition, savers can also reasonably plan their monthly living expenses, savings and investment amounts according to their personal living needs and consumption habits, and adjust their plans in a timely manner to maintain financial stability and sufficient liquidity.
At present, the deposit interest rate of small and medium-sized banks is much higher than that of state-owned banks, so many depositors prefer to deposit their funds with these banks. For example, the interest rate on three-year deposits in some village and township banks has reached 32%, while the interest rate of state-owned banks is only 26%, and there is a large spread between the two. However, since the beginning of this year, 10 village and township banks have declared bankruptcy due to poor management and other reasons, which has brought certain risks to depositors. In order to avoid risks, we recommend that savers diversify their funds, especially in a bank with no more than $500,000.
Expansion: Diversification is an important strategy for reducing risk. Depositors can diversify their funds across multiple banks, different wealth management products and investment varieties to diversify their risks and gain more income opportunities. In addition to depositing their funds with multiple reliable banks to keep their funds safe, savers can also consider purchasing other financial products such as insurance,** and bonds for a more diversified asset allocation. In addition, savers can also choose a portfolio that suits them according to their personal risk tolerance and investment goals, such as active, moderate or conservative, to achieve a balance between maximizing returns and minimizing risks.
Although bank deposit rates will rise accordingly at the end of the year, there is still room for deposit rates to fall in the long run. Therefore, savers need to be prepared for a prolonged decline in interest rates. For risk-averse investors, you can opt for a longer-term deposit to lock in interest rates and keep some liquidity in case of unexpected needs. However, if investors can tolerate a certain amount of risk, they can diversify their asset allocation.
Expansion: Strategies for dealing with prolonged downward interest rates vary for different types of investors. For risk-averse investors, they pay more attention to the safety and liquidity of their funds, and tend to choose stable income methods. In addition to opting for a longer-term deposit lock-in rate, they can also consider investing in low-risk financial products such as Treasuries for a stable fixed income. In addition, they can also moderately allocate some low-risk investment products, such as bonds** and structured deposits, to increase the level of returns.
However, for investors with a higher risk tolerance, they can choose a more diversified investment variety and adjust their asset allocation based on market conditions and personal judgment. In addition to deposits and treasuries, they can consider investing in the market, buying potential or participating in equity investments in pursuit of higher capital appreciation. In addition, they can also focus on investment opportunities in other sectors, such as real estate, private equity**, and more.
At present, there are many bubbles in the domestic capital market, and the property market and foreign exchange market are facing certain risks. Therefore, blindly investing in the capital market carries greater risks, compared to keeping money in a bank is safer and more reliable. However, many savers lack the investment knowledge and experience to take advantage of investment opportunities. Therefore, it is recommended that savers learn some knowledge and skills of investment and financial management while waiting for new investment opportunities.
Expanding: Learning financial literacy is one of the important ways for savers to improve their investment level. By learning financial knowledge, depositors can understand the characteristics, risks and returns of different investment varieties, master investment skills and analysis methods, and improve the ability of capital operation. In addition, savers can also continue to accumulate knowledge and experience by reading financial books, participating in financial training courses, and paying attention to financial management**, so as to become financial experts.
As the new year begins, there are four things that people who hold fixed deposits need to make preparations. First of all, it is necessary to maintain a certain amount of cash reserves to ensure sufficient liquidity;Second, diversify your investments to reduce risk;Third, we should be prepared to deal with the long-term decline in deposit interest rates and rationally allocate assetsFinally, learn financial literacy to grasp investment opportunities. Against the backdrop of unpredictable financial markets, savers need to consider their own risk tolerance, investment objectives and market conditions to make informed investment decisions to achieve financial growth and stability. With proper planning and preparation, savers can meet the challenges in the new year and create a better return on investment for themselves. Exploring and learning financial knowledge is not only the only way to improve the personal investment level of savers, but also to grasp investment opportunities and become a winner in life. Therefore, in the ever-changing environment of the financial markets, it is essential to continue to learn and grow.