With the announcement of the adjustment of the listed deposit interest rates of China's four major banks and other major commercial banks, the issue of deposits has once again aroused the concern of the general public. At the same time, as a competitor in the market, the annualized rate of return of Yu Bao has also reached 1928%, which is not much different from the yield of a 3-year fixed deposit. So, in the face of such a market environment, how should we choose?
First of all, from the perspective of income, the bank's 3-year fixed deposit is not much different from Yu'e Bao. However, there is a significant difference in liquidity between the two. The bank's 3-year fixed deposit can only be withdrawn after 3 years of holding, while Yue Bao is almost equivalent to a current deposit and can be redeemed at any time. This means that if you have short-term funding needs or are unsure whether you will need funds in advance in the future, Yue Bao may be a better choice.
Secondly, both are very safe from a risk perspective. Bank deposits are protected by the national deposit insurance system, while Yu Bao is a currency**, and its investment direction is mainly low-risk bonds and other financial products. However, it is important to note that while the risk is relatively low, it does not mean that there is no risk at all. Before investing, users should fully understand and evaluate their own risk tolerance.
In addition, the interest rate on bank fixed deposits is fixed, and users can know exactly what they will earn in the future. The yield of Yu'e Bao is fluctuating and may be affected by the market environment. This is also a big difference between the two.
To sum up, the choice of where to store it depends mainly on the individual's needs and preferences. If you need a relatively high yield and don't have high liquidity requirements, a bank term deposit may be more suitable for you. If you pay more attention to the liquidity of funds or short-term capital needs, then Yu'e Bao may be more suitable for your needs. Before making a decision, it's important to weigh the pros and cons carefully.