Time deposit holders need to be vigilant! Three major preparations for new changes

Mondo Finance Updated on 2024-02-21

Kunpeng Project

Time deposit holders need to be vigilant! Three major preparations for new changes

In the past two years, residents' deposits have become increasingly active across the country. Data shows that household savings increased by 110.9 billion yuan. People keep their money in the bank mainly to deal with problems such as unemployment, illness, pension, etc. At the same time, high-yield varieties such as bank wealth management products are more risky. Many people feel that since the current investment environment is not good, it is better to honestly deposit money in the bank to avoid property losses.

Although residents' enthusiasm for deposits is increasing, bank deposit interest rates have been falling again and again, and it is rare for bank deposit interest rates to exceed 3%. At present, bank deposit rates are declining across the country. In this regard, some industry experts said: from next year, citizens who hold fixed deposits need to make three preparations, and many people have not yet realized it. Let's find out:

i.Downward pressure on interest rates has intensified.

With the development of financial markets and the intensification of competition, it has become a trend for interest rates to fall. Due to the oversupply of funds and the diversification of investment channels, banks and other financial institutions often lower interest rates to attract customers in order to compete for market share. For fixed deposit holders, this means that their income levels will be under more pressure. To prepare for this change, you need to be prepared for two things.

First, focus on long-term investment. In the context of declining interest rates, short-term investments often do not yield higher yields. Therefore, fixed deposit holders should focus on long-term investment and choose assets with stable returns and high growth potential to obtain stable returns. Second, they should seek to diversify their income**. In addition to fixed deposits, you can also consider other investment methods, such as bonds,**, etc., to diversify your income**. This reduces the risk of a single asset and increases the stability and return level of the entire portfolio.

Second, the security of the deposit is very important.

Perhaps many people think that keeping money in the bank is the safest option. However, the reality is not as one might think: first, some small and medium-sized banks have higher deposit rates, but there is still a risk of bankruptcy and collapse. Therefore, it is advisable for people to spread their deposits, not to put all their funds in one bank, and not to deposit more than $500,000 in each bank to reduce the risk of bank failure.

Secondly, some depositors may mistakenly buy the bank's wealth management products, which will also lead to significant property losses. For example, some time ago, Mr. Wang, a demolition household in Ningbo, deposited more than 4 million yuan in the bank, but the bank staff bought him an insurance product distributed by the bank, and when the deposit expired a year later, Mr. Wang was unable to withdraw it. Therefore, the deposit must be clear: whether it is a fixed deposit, a bank wealth management product or an insurance sale.

Third, be prepared to deal with the fluctuations of life.

After three years of the pandemic, all walks of life are now facing a crisis, and many companies are laying off employees and cutting salaries. It will probably take some time to return to the situation before the pandemic. Therefore, during this period, every family should be prepared for unemployment or a decrease in income. Hence the recommendations"Hold fixed deposits"do not set up three-year or five-year fixed deposits. Because in the case of urgent need for money, interest can only be calculated at the mobilization rate.

It is also important to keep your deposits safe. Although small and medium-sized banks have higher deposit interest rates, the risk of bankruptcy cannot be ruled out. If you deposit your money in the six major public banks, the security of your deposits is guaranteed. In case of unemployment or reduced income, the money can be withdrawn at any time for daily expenses.

Flatly. The uncertainty of the financial crisis is a challenge for everyone, especially those who rely on fixed deposits. To meet this challenge, we need to consider diversification, set aside sufficient reserves, and choose a reputable bank.

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