In recent years, the concept of savings of Chinese residents has become increasingly solid, especially after 2023, residents' saving behavior has shown a kind of "retaliation"** data shows that from January to July 2023, household deposits increased by 110.9 billion. One of the reasons for the growing enthusiasm for saving is the belief that it is safer to keep money in a bank. At the same time, after three years of the pandemic, people are paying more attention to dealing with unexpected risks such as unemployment and illness, so saving has become a precautionary measure.
In response to the gradual rise of residents' savings boom, industry insiders pointed out that since 2014, those families who hold fixed deposits need to be prepared in three aspects. First of all, we must be prepared for the continuous reduction of deposit rates; The second is to be ready to respond to "unforeseen needs" at any time; Finally, it is necessary to be prepared for the possible bankruptcy of some banks.
Ensure the safety of your deposits
It is generally believed that as long as it is a bank with a business license, it can keep money in it without any worries. But this may not be the case. Historically, some small local banks may be at risk of bankruptcy due to poor management.
For this reason, professionals suggest that if you have a deposit of more than 500,000 yuan, it is best to choose to spread it in two banks, because the upper limit of compensation stipulated by China's deposit insurance is 500,000, so that potential risks can be avoided within the scope allowed by the rules.
In addition, for savers with limited literacy, whether they are depositing money in small banks or big four banks, they should choose deposits rather than wealth management products. Because in the past, sometimes depositors would find that their deposits were "missing" and were converted into wealth management products, which could bring a lot of losses to depositors.
Use your deposit flexibly
In order to pursue higher returns, more and more people choose to deposit funds into bank accounts. Usually, they tend to lock their money in fixed deposits with the bank for three or five years. However, while these two options can achieve a more attractive interest rate return, it is not so easy to withdraw cash when needed due to the longer maturity of the deposit.
Assuming you have invested all your money in a fixed deposit for more than 3 years and withdraw the funds early in an emergency, then the interest will be calculated based on the current savings, which may result in you facing a certain loss of interest rate.
Whether future funding needs are likely to have an impact on deposits is something that needs to be carefully considered when saving. If you may need to withdraw early at a later date, it is recommended to choose a deposit period of 1-2 years, which is more convenient.
Although interest rates may be lowered slightly, they will at least solve the problem of liquidity. Of course, when saving, you can take different maturity accounts for diversified allocation. For example, if you have $800,000 in cash, you can put $100,000 into a 1-year account, $200,000 in a 2-year account, $500,000 in a 3-year account, and so on. Choosing this method can both solve the problem of liquidity and enjoy relatively high interest rate returns.
Maximize your deposit returns
Under the current trend of declining interest rates, traditional term deposits have struggled to meet the income expectations of some savers.
Fixed income products such as treasury bonds and large-denomination certificates of deposit have become new options.
Treasury bonds have high security and relatively stable interest rates, while large-denomination certificates of deposit have become an emerging way of saving with higher yields due to their higher interest rates and relatively flexible access methods.
Savers need to have sufficient knowledge of these financial products and make reasonable choices based on their own capital situation and risk tolerance.
Finally
After 2024, if you have fixed deposits in the bank, be prepared for the above 3 aspects. At the same time, we should also pay more attention to risk management in financial management, choose the investment method that suits you, and adjust accordingly according to market changes. Only by being prepared in three aspects can we better adapt to economic changes and ensure the security of personal wealth. Banks