In recent years, the enthusiasm of domestic residents to save money has become higher and higher. According to the data, household deposits will increase by 16 in 202367 trillion yuan. The reason why residents love to save money is mainly to cope with possible expenses such as unemployment, illness, children's education, down payment for buying a house, and pension. However, when you save a fixed term, you will always struggle with whether to save for 1 year or 3 years, which is more cost-effective?
From the perspective of interest alone, if a depositor takes 100,000 yuan and deposits it in the bank, the annual deposit interest rate is only 195%, and the deposit interest rate after maturity is 1950 yuan. If you put the 100,000 yuan in a three-year fixed deposit, the annual interest rate is 26%, the average annual deposit interest is 2,600 yuan. In this way, the interest income of a fixed deposit with a term of 3 years will be more. However, if you put money in a 3-year fixed deposit, you will also face the following three problems:
First, there is the issue of liquidity
The liquidity of a 1-year CD is definitely better than that of a 3-year CD. If you put 100,000 yuan into a 3-year fixed deposit, in case you need money urgently and need to spend the funds in advance, then the current deposit interest rate will be calculated. As a result, depositors incur huge interest losses. Therefore, it is recommended that you consider carefully when saving money, is it possible that this money will be withdrawn in advance? If there is, it is safer to save for 1 year, and if you are sure that you will not withdraw it early, it is more appropriate to save for 3 years.
Second, there is the issue of inflation
On the surface, depositors can obtain relatively high deposit returns by depositing a fixed deposit for 3 years. But in reality, it is difficult for your 3-year fixed deposit interest rate to outperform inflation. When the three-year fixed deposit matures, the purchasing power of the deposit may shrink significantly, far less than before. And if the deposit is 1 year, the inflation feeling after maturity is not as pronounced as that of 3 years. This allows savers to withdraw the funds and spend them on consumption. Obviously, once the interest rate of a 3-year fixed deposit cannot outperform the current inflation level, it is more practical to save a 1-year fixed deposit.
Third, there will be a lot of investment opportunities lost
On the surface, depositors can earn higher interest on a 3-year fixed deposit than a 1-year fixed deposit, and lock in the interest rate for these 3 years to avoid the reduction of interest income caused by the reduction of deposit interest rates. But this will also lock this money for a long time, even if you come across a good investment opportunity, you can't take it out.
Because once it is withdrawn in advance, the current deposit interest rate will be calculated. Although the interest income of a 1-year fixed deposit is small, you can at least learn about new and more investment opportunities every year. Therefore, if you keep a fixed deposit for 3 years, you should also consider the problem that you will lose more investment opportunities.
Faced with the question of whether to deposit for 1 year or 3 years, some industry insiders have provided two solutions: one is that if you have 600,000 yuan in cash, you can divide the funds into three parts, each of which is 200,000 yuan. Deposit 1-year, 2-year, and 3-year fixed deposits respectively, and after each deposit matures, you can renew the 3-year fixed deposit, so that you can enjoy the higher interest income of the 3-year deposit every year.
The other is that if you have less funds in your hand, only 300,000 in total, you can divide the money into two parts: one is 100,000 for a 1-year fixed deposit, and the other is for 200,000 for a 3-year fixed deposit. In this way, even if you need to use money halfway, you can withdraw a 1-year fixed deposit of 100,000 yuan in advance at most, and will not use a 3-year fixed deposit of 200,000 yuan.
Bank fixed deposit, 1 year or 3 year tenor, which is more cost-effective? The advantage of a 3-year fixed deposit is that the deposit interest rate is higher, and it can also lock in a higher interest rate. However, there are three defects: 1. Liquidity problems; 2. Inflation; 3. There will be a lot of investment opportunities lost. The advantage of a 1-year fixed deposit is that it has better liquidity and can have more investment opportunities.
Therefore, savers should consider the liquidity of the deposit when purchasing a fixed deposit certificate, and if it is possible to use the money in the short term, they should save it for 1 year, and if the money will not be used again for a long time, they should save it for 3 years. If you want to get the interest of a 3-year fixed deposit and keep your liquidity safe, you can also choose the two solutions we have provided above.