Compliance issues are one of the main reasons for the closure of specialty deposits. At the time of the establishment of special deposits, due to the lack of relevant laws and regulations, or the supervision has not been strict, someBanksThere may be some compliance loopholes that make featured deposits a problematic product. However, as regulations become more stringent, these loopholes are gradually being filled, and it is not surprising that these products are being taken off the shelves.
Another reason is cost. Compared to ordinaryFixed Deposits, featured depositsInterest rateshigher, but that also meansBanksYou need to pay more for the storage costs. InInterest ratesand declining net interest marginsBankshad to tighten the cost on the liability side, so forInterest ratesHigher deposits,BanksThere is also a tendency to shut down.
Featured deposits, although unstable, still have the value of the deposit. First of all, the featured deposit is more ordinaryFixed Depositshas an obvious oneInterest ratesAdvantage. Distinguish between featured deposits and ordinary deposits based on the difference in deposit amountsFixed Deposits。The threshold for special deposits is higher, but it is givenInterest ratesIt is also higher, which makes the featured deposit more attractive than the regular deposit, so depositors are still willing to opt for the featured deposit.
Second, even if the featured deposits are halted in the future, it will not have much impact on depositors. The closure of featured deposits may result in deposits not being renewed, but the impact on depositors will not be significant. Because if the deposit is stopped before maturity, usually, the deposit amount will be converted to a regular deposit, and there is no difference. And if the characteristic deposit cannot be renewed after maturity, the impact on the depositor is smaller, and at most it loses the high access highInterestopportunities. Actually, at present, the familiesBanks's featured deposits are relatively conservative in innovation and are relatively unlikely to be shut down. Therefore, if originally intended to chooseFixed DepositsFeatured deposits of the same maturity are still an option worth considering.
The shutdown of special deposits is actuallyBanksAdjustments made in response to operational pressures and compliance requirements. in the presentInterest ratesFalling against the backgroundBanksMore investment channels need to be found to maximize returns, and specialty deposits are relatively highInterest ratesThe deposit method was givenBanksMore profit margins. However, the existence of compliance issues and cost considerations also make it possibleBanksMeasures have been taken to shut down special deposits.
For depositors, featured deposits are in:Interest rateshas certain advantages, but at the same time there is instability. Therefore, when choosing a featured deposit, you need to choose a special deposit according to your own risk tolerance and pairInterest ratesThe needs are assessed and grasped. For depositors, the closure of specialty deposits also has less impact on themselves, because:BanksAn alternative will be offered to convert the deposit into a regular deposit. So, whether you choose a featured deposit or a regular oneFixed DepositsCriticalIt lies in the assessment of one's own needs and risk tolerance.