Recently, it has been reported that with the reduction of deposit interest rates by many banks, some ordinary time deposit products have also been robbed, and some have even been sold out within an hour. This phenomenon has aroused widespread concern in the society, why are bank fixed deposits being robbed? What's behind this? This article will analyze the following four aspects.
The fact that bank fixed deposits have been robbed like crazy illustrates the lack of better investment options in the market. In the current economic situation, real estate and other investment channels are facing greater risks and uncertainties, and bank fixed deposits, as a stable, safe and secure investment method, are naturally favored by investors. Especially during the year-end bonus distribution season, many people will choose to deposit the year-end bonus in the bank to obtain a certain amount of interest income, rather than risking investment in other markets.
According to the data of the central bank, on December 22, 2023, state-owned banks including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, as well as some joint-stock banks such as China Merchants Bank, all lowered the deposit listing rate. After the reduction, the three-year listed interest rate of the above-mentioned banks has bid farewell to the "2 era" and dropped to 195%1。In addition, the central bank also announced that it will reduce the reserve requirement ratio of financial institutions by 05 percentage points; From January 25, 2024, the re-lending rates for supporting agriculture, re-lending for small and medium-sized enterprises, and rediscounting will be lowered by 025 percentage points 2. These measures all indicate that the country is taking monetary policy easing measures to reduce financing costs and stimulate economic growth. This also means that deposit rates are likely to continue to fall in the future, so many people will choose to buy fixed deposits as soon as possible before the interest rate is lowered to lock in higher interest rate returns.
The rush on bank term deposits reflects concerns about inflation. Although China's CPI (consumer consumption index) and PPI (industrial producer factory index) are at a low level, with the recovery of international commodities and domestic demand, inflationary pressure may gradually appear. The rise in inflation will lead to a decrease in the purchasing power of money, that is, the money in hand will become less and less valuable. Therefore, many people will choose to keep their money in the bank to obtain a certain amount of interest income to offset the impact of inflation and maintain the value of their assets.
In the current financial market, there are actually many other wealth management products that can provide higher returns than bank fixed deposits, while also having lower risks. For example, treasury bonds, savings insurance, currency**, etc., are some stable, safe and secure financial management methods, and the interest rate is higher than that of bank fixed deposits. However, many people don't know about these financial products, or don't know how to choose and buy, so they miss out on some better financial opportunities.
To sum up, the crazy robbery of bank fixed deposits is a complex social phenomenon, which reflects the contradiction between supply and demand in the market, people's expectation psychology, inflation concerns, and lack of financial knowledge. For ordinary investors, in order to achieve the goal of financial management, they should not only pay attention to the changes in the interest rate of bank fixed deposits, but also understand other financial products and market dynamics, and reasonably allocate assets according to their own risk appetite and capital needs, so as to achieve the preservation and appreciation of assets.