In this era of economic instability, it is important to ensure the growth of wealth. After all, for the vast majority of people, having a stable way to grow their wealth not only ensures their quality of life, but also supports their future planning.
When it comes to wealth growth, among the many financial management methods, fixed deposits can be said to be recognized as a stable income and low-risk investment and financial management methods, especially three-year or five-year fixed deposits, which are favored by many people.
In addition, many people in the industry believe that ordinary people must save a "fixed deposit" for a lifetime. So, what exactly is the reason for ordinary people to have a fixed deposit?This article will analyze from three aspects, let's take a look at it together.
First, it helps to outperform inflation.
The so-called inflation is the price level that is constantly **, which leads to a decrease in the purchasing power of money. In the current context of increasing inflation, if you simply keep your money in a bank account, it is not only difficult to maintain the current value, but may even shrink. However, if the funds are deposited in a three-year or five-year fixed deposit, not only can you obtain relatively stable income, but also may mitigate the risk of depreciation.
2. Lock in high interest rates in advance.
Compared with demand deposits and other short-term wealth management products in banks, the interest rates of three-year and five-year time deposits are generally higher. On the one hand, the interest rate of bank deposit products is directly proportional to the maturity of the deposit, and the longer the term, the higher the interest rate.
On the other hand, because depositors keep their money in the bank for a longer period of time, the bank also has a longer period of time to use the deposit to get more returns. Therefore, if you choose to keep your money in three-year and five-year fixed deposits, you can get a relatively high interest rate.
In addition, if you deposit money in three-year and five-year time deposits, you can also avoid the impact of deposit interest rate fluctuations on interest income, especially when the deposit interest rate continues to fall, and also lock in high interest rates in advance, which can help investors better plan their funds and get more returns.
3. Compulsory savings.
It is not easy for ordinary people to do a good job in financial management, because they are often faced with spending money in their daily lives. However, if the money is deposited in a fixed deposit, it can play a role in compulsory savings, because once the money is deposited in a fixed deposit, it means that the principal and the corresponding interest can be recovered when it is full and mature, otherwise it may cause a large interest loss. This undoubtedly effectively limits the frequency of withdrawals.
In addition, fixed deposits will force people to manage their finances more carefully, while also allowing for better long-term asset planning, providing financial security for future goals and needs. For example, buying a house, starting a business, education, etc., if you have a fixed deposit, then you can provide a stable fund**.
4. Precautions.
Although fixed deposits have many advantages, they should not be ignored, such as insufficient liquidity and low interest rates. Therefore, you can not concentrate all your funds in fixed deposits, but also know how to diversify your investment, such as using part of the funds to allocate bonds and bondsOr conform to the policy of emerging some foreign trade economic consignment, 100,000 yuan per month 1,000 yuan profit, etc., so as to achieve better value-added.
In short, although there are certain deficiencies in fixed deposits, they are of great significance to ordinary people, especially those who hope that their funds can maintain and increase their value and plan for the future. If you make the most of your fixed deposits, you will not only be able to achieve stable growth in your wealth, but you will also be able to achieve your desired financial goals.