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From the point of view of deposit interest, China CITIC Bank is the highest, and Bank of China is the lowest. However, the interest on the deposit is not the only criterion for choosing a bank, and other factors such as service quality, convenience, security, etc. should be considered.
According to the latest data, the current ranking of deposit interest in China is as follows:
Therefore, from the point of view of deposit interest, China CITIC Bank is the highest, and Bank of China is the lowest. However, the interest on the deposit is not the only criterion for choosing a bank, and other factors such as service quality, convenience, security, etc. should be considered. For example, if you have high requirements for the security of your deposits, you will tend to choose state-owned banks or large commercial banks, even if they have lower interest rates on deposits; If you have high requirements for the profitability of your deposits, you will tend to choose small and medium-sized banks or city commercial banks, even if they have higher deposit risks.
Deposit interest refers to a certain percentage of the interest paid by the bank to the depositor, which is one of the depositors' income**.
The interest on the deposit is calculated as follows:
Current Deposit Interest = Deposit Amount Current Deposit Interest Rate Number of Deposit Days 365
Time Deposit Interest = Deposit Amount Time Deposit Interest Rate.
The demand deposit interest rate refers to the bank's benchmark interest rate on demand deposits, which is usually uniformly set by the central bank and is currently 03% or 035%。
The fixed deposit interest rate refers to the bank's benchmark interest rate on fixed deposits, which is usually uniformly stipulated by the central bank, and has different grades according to the different deposit periods, such as 05% (three months.) 1% (semi-annual.) 5% (one year), etc.
Banks can adjust deposit rates on the basis of the benchmark interest rate set by the central bank to attract more deposits. Therefore, different banks, different deposit products, and different deposit tenors will affect the level of deposit interest.
The level of deposit interest depends not only on the bank's independent adjustment, but also on the following factors:
Deposit term
Generally speaking, the longer the deposit term, the higher the interest on the deposit, because the depositor gives up the liquidity of the funds and takes more time risk, so the bank has to give a higher return. Conversely, the shorter the tenor, the lower the interest on the deposit, because the depositor can withdraw the funds at any time and enjoy higher liquidity, so the return given by the bank is also lower.
Deposit Risk
Generally speaking, the higher the deposit risk, the higher the deposit interest, because the depositor bears more credit risk and faces the risk of losing funds, so the bank has to give a higher return. Conversely, the lower the deposit risk, the lower the interest on the deposit, because the depositor's funds are relatively safe and less likely to suffer losses, so the return given by the bank is also lower.
Generally speaking, state-owned banks and large commercial banks have higher credit ratings, lower deposit risks, and therefore lower deposit interest; However, small and medium-sized banks and city commercial banks have lower credit ratings and higher deposit risks, so the deposit interest is also higher.
Market interest rates
The market interest rate refers to the interest rate level determined by the supply and demand of funds in the financial market, which reflects the scarcity and ** of funds. Changes in market interest rates will affect the bank's cost of funds and returns, which in turn will affect the bank's deposit rate. Generally speaking, when market interest rates rise and banks' cost of funds increases, banks will raise deposit rates to attract more deposits and maintain the balance of funds. On the contrary, when the market interest rate falls, the bank's cost of funds decreases, and the bank will reduce the deposit interest rate to reduce the cost of deposits and improve profit margins.