The deposit insurance system is a system established to protect the safety of depositors' deposits in the event of bank bankruptcy. In China, the maximum payout limit for deposit insurance is RMB 500,000. So, for depositors with deposits of more than 500,000 yuan, how to ensure the safety of their funds? This article will explain in detail the payouts and strategies of deposit insurance of more than 500,000 yuan.
1. Principle of deposit insurance compensation
Deposit insurance payouts are based on the following principles:
1.Limit of compensation: The maximum limit of deposit insurance compensation is RMB 500,000, and the part of the deposit exceeding RMB 500,000 is not covered by the insurance payment.
2.Preferential compensation: In the process of bank bankruptcy liquidation, the deposit insurance institution will give priority to the depositor to ensure the safety of the depositor's funds. However, from the perspective of international resolution experience, in most cases, deposit insurance** is used first to support other qualified institutions to "take over" the problematic institutions, acquire or undertake their business, assets and liabilities, so that the depositor's deposit can be transferred to other qualified banks and continue to be fully protected, that is to say, your deposit can continue to be freely withdrawn and used. If it is determined that it cannot be acquired or undertaken by other institutions, the insured deposit shall be directly repaid in accordance with the maximum repayment limit, and in addition, the part exceeding the maximum repayment limit may also be compensated from the liquidated property in accordance with the law.
2. Compensation strategy of more than 500,000 yuan
For depositors with deposits of more than 500,000 yuan, the following strategies can be adopted to ensure the safety of funds:
1.Decentralized storage: Disperse the funds in multiple banks to ensure that the deposits of each bank are less than 500,000 yuan. In this way, even if one bank goes bankrupt, deposits in other banks are covered by deposit insurance.
2.Choose a reputable bank: Deposit your money in a reputable, well-run bank to reduce the risk of bank failure. You can understand the soundness of a bank by paying attention to its financial status, regulatory ratings, and other information.
3.Applying for commercial insurance: Some insurance companies provide insurance products for bank bankruptcy, and you can consider purchasing this type of insurance to increase the security of funds.
4.Invest in other financial products: Invest part of the funds in other financial products, such as bonds, **, etc., to achieve diversified allocation of assets and reduce the risk of a single asset.
The deposit insurance system provides depositors with a certain degree of financial security. For depositors with deposits of more than 500,000 yuan, the safety of funds can be further guaranteed through strategies such as decentralized storage, choosing reputable banks, insuring commercial insurance and investing in other financial products. In practice, you should formulate a suitable fund management plan according to your own situation and risk tolerance.