Fixed deposits are a common way to manage money, and many people choose to keep their spare money in the bank to enjoy a fixed interest income. However, there are many things to pay attention to in terms of deposits, and if you are not careful, you may be cheated by the bank.
First of all, let's be clear about the fact that banks are not charities, but commercial institutions. Their goal is to make money, and your money is their tool to make a profit. Therefore, you should always be vigilant when depositing time to avoid being cheated by the bank.
Let's take a closer look at the points you need to pay attention to in terms of deposits:
1. Don't blindly auto-dump
If you opt for auto-rollover, the bank will automatically transfer your money to the next fixed deposit when your fixed deposit matures. While this will save you the hassle of re-saving money at maturity, it may also cost you some of your interest income. Your interest income may also be affected because the bank will calculate the new interest based on the interest rate of the current day, which may be different from the interest rate of your previous fixed deposit.
2. Don't blindly choose a long-term term
When choosing the term of a fixed deposit, do not blindly choose a long-term one. Although a long-term fixed deposit can allow you to earn higher interest income, if you need to use the money during the deposit period, then you can only calculate the interest at the interest rate of the demand deposit, which will cost you a lot of interest income. Therefore, when choosing the term of a fixed deposit, you should make a decision based on your actual situation.
3. Don't deposit too much in the same bank
While keeping all your money in the same bank can be convenient to manage and use, it also puts you at risk. Because when you have a large amount of deposits in the same bank, once there is a crisis in this bank, your money may also be affected. Therefore, when making a deposit, do not keep all your money in the same bank, but spread the deposit to reduce the risk.
Fourth, don't ignore the tax issue of deposits
You also need to consider tax issues when saving for a fixed period. If your savings have reached the threshold for personal income tax, then you will need to provide the relevant tax documents to the bank so that the bank can withhold and remit the tax for you. If you ignore this issue, then you may face unnecessary troubles such as tax penalties.
5. Don'tForget about regular check-ups and adjustments
Don't forget that regular review and adjustment of time deposit is not an overnight approach to managing your finances, it also needs to be reviewed and adjusted regularly. Just like the change of seasons, the market environment and individual needs are constantly changing. If you fail to track and adjust in time, you may miss out on better financial opportunities or face greater financial risks.
When creating a financial plan, you need to consider the following:
1.Your household income and expenses: You need to know your financial situation so that you can make a sound financial plan.
2.Your goals and risk tolerance: You need to be clear about your financial goals, but also consider your risk tolerance so that you can choose the right investment method.
3.Market conditions and investment varieties: You need to understand the market conditions and investment varieties in order to choose the right investment products and investment strategies.
4.Asset allocation and adjustment: You need to develop a reasonable asset allocation and adjustment plan to maintain the stability and profitability of your portfolio under different market conditions.
5.Tax and insurance issues: You need to consider tax and insurance issues in order to choose the right banking products and services.
6.Regular review and evaluation: You need to regularly review and evaluate your financial plan and investment portfolio so that you can adjust and optimize your investment strategy in a timely manner.
7.Long-term planning: You need to consider long-term planning in order to choose the right financial products and investment strategies to meet your long-term needs.
When reviewing and adjusting your financial plan, here are a few things to keep in mind.
1.Have you been surging with your funding goals and are no longer satisfied with the original direction of the river?Do you need to adjust your course, reset or widen your goals?
2.Have your funding needs changed?Is it necessary to advance or postpone the liquidity of funds?Is there a need to increase or decrease the investment of funds?These questions are like meandering rivers that converge into a stream of money that nourishes your financial forest.
3.Has your money changed its risk appetite?Do you feel the need to increase or decrease the level of risk?Just like performing on stage, sometimes you need to add some excitement and challenge, and sometimes you need to reduce some risk to ensure stability and safety. Now, it's time to reassess your risk appetite and risk level.
4.Has your knowledge base been upgraded?Has your time commitment been adjusted?Does the mastery of financial literacy require a deeper level of Xi, or is it appropriately reduced?Do you need to add more energy to your time commitment to managing your finances?
In the fixed deposit business of banks, there are some five major matters that we need to pay attention to to prevent being cheated by banks. While fixed deposits are a simple and easy way to manage your money, the details and tricks that don't go unnoticed. Only by mastering these skills can our money grow more safely and efficiently.
In short, although fixed deposits are a simple and easy-to-understand way to manage money, they also require us to pay attention to many details and skills to make our money safer and more efficient to grow in value. I hope this article can help you avoid being cheated by the bank, thank you for reading!