In recent years, more and more people have chosen to save money, and in the first half of 2023 alone, domestic resident deposits increased by 1191 trillion, a record high. The main reason why people save money is to cope with problems such as unemployment, illness, pension, etc. At the same time, many people also hope that through their savings, they will be able to buy large appliances and cars in the future, pay a down payment, etc.
However, a bank staff member revealed that it is best not to choose a fixed deposit easily this year and next. According to this staff member, there are three main reasons why it is not recommended for everyone to save a fixed term:
1. Insufficient liquidity of fixed deposits
Many people choose fixed deposits because they do not need to use their deposits at will for a period of time, and the interest rate of fixed deposits is relatively fixed and not disturbed by other factors.
However, there are often two sides to things. There are pros and cons to fixed deposits, one of the obvious disadvantages is that it cannot be easily withdrawn during the deposit period. When there is an emergency or emergency, when you need funds urgently, you are helpless in the face of the money deposited in the bank and cannot use it flexibly. As a result, time deposits are less liquid in terms of liquidity.
Take a seriously ill family as an example, and need to pay a huge amount of medical bills. The amount of money you have accumulated may not be enough, and taking out your bank fixed deposit has become the most normal option. However, due to the characteristics of fixed deposits, deposits cannot be withdrawn at will during the specified deposit period, and even if they save more, they are equal to zero when they need money urgently.
As a result, the urgent need for more flexible ways of using funds is even more urgent in this context.
Second, interest rates are low
At present, the interest rate on bank fixed deposits can be described as depressed. All this stems from the continuous reduction of the central bank's benchmark interest rate, which is constrained by market supply and demand, inflation, monetary policy and other factors. In recent years, due to the multiple effects of slowing economic growth, monetary easing, and low inflationary pressure, the central bank has continuously lowered the benchmark interest rate, which in turn has led to a decline in the interest rate of bank fixed deposits.
At present, for example, the annual interest rate of a one-year fixed deposit is about 165%, while the annual interest rate of a five-year fixed deposit is only about 265%。Such interest rates are not only much lower than they have been in the past few years, but even lower than the yields of some currencies and bonds. If you choose to deposit your money in a fixed deposit with the bank, you may miss out on investment opportunities with higher yields.
3. Diversification of financial management methods
Nowadays, people are becoming more and more diverse. In the past, people may only be able to earn some interest income through fixed deposits in banks. However, with the continuous development of China's financial industry, modern people are no longer limited by the traditional fixed deposit interest rate model. The market is a prime example of this, where many companies raise funds through issuance and introduce certificates of ownership into the market.
Shareholders who purchase these ** have the opportunity to share in the dividends and bonuses that come with the company's development. In addition, there are government bonds, in short, they lend idle funds in our hands to the state, and the state pays interest on the funds we use accordingly.
In this way, we can obtain a certain income, and the yield of treasury bonds is quite considerable, basically there is not much risk, so it has become a popular choice of financial management for many people. Finally, there is **, as a valet financial management tool, we can hand over the funds we don't need to a knowledgeable financial professional.
Through their modus operandi, the funds can be more flexible and earn more income, and we can also share a share of the dividends.
With the emergence of so many new ways of wealth management, the returns of traditional bank fixed deposits are relatively less eye-catching. People are more inclined to choose investment methods with higher returns and more flexible operations, which makes traditional bank fixed deposits gradually boring.
Finally
Fixed deposits, with low risk and real value, have become the shining star among many choices. Although it has relatively low liquidity, it has the characteristics of stability and low risk, which is unmatched by other investment methods. When it comes to financial decisions, we should make wise choices based on our personal circumstances, rather than being confused by the blind pursuit of high returns and ignoring potential risks. Banks