Did you know that these 2 deposit methods are safer than fixed deposits?
When I work in a bank branch, I am often asked what other ways to save money with principal and interest protection in addition to deposits. Today, I would like to share with you two safer ways to save money than fixed deposits, that is, treasury bonds and reverse repo treasury bonds.
The first thing to say is that it is not easy for ordinary people to buy various financial products in 2024 because the risks are too great.
At present, banks expect an annual rate of return of about 4% for prudent financial management. According to this interest rate, if you invest 50,000 yuan and buy a stable financial management, the expected return in a year will be 50,000 4%=2,000 yuan.
This yield on financial products seems to be much higher than that of term bonds and ** bonds, etc. However, we must also be clear that this gain is only an expected return. Indeed, you invested a sum of money and purchased a wealth management product. When the yield expires, the expected yield may not be reached, and the principal may be lost.
As a banker, what I want to tell you is that today's bank's wealth management products have long broken the rigid payment, that is to say, any wealth management products of any bank have risks, and there are no capital guaranteed wealth management products for a long time.
Essentially, they are"Variable income that is not protected by capital"。Even in prudent financial practices, there is a risk of capital loss at maturity.
Based on my own professional experience, I have conducted a probabilistic ** on a stable financial product. This is a stable wealth management product with an annualized rate of return of 4% over the entire term:
The probability that the actual yield at full maturity will be in line with the expected yield is about 20%.
The probability that the actual yield at maturity will be lower than the expected yield is about 60%.
This way, there is a 20% chance that you will not get a penny of return at maturity and lose your principal.
If you buy high-yield, high-risk financial products, you are more likely to lose money.
Everything you want to know about bonds is here.
1) What is a national debt?
Treasury bonds are essentially bonds issued by the state, that is, the state issues loans, and the state borrows money from residents with national credit as collateral, and once it defaults, national credit cannot exist, that is, as long as the state continues to exist, the bonds it buys can be recovered when due, so it is very safe.
2) Types of Treasury bonds. The treasury bonds purchased by individual citizens are savings treasury bonds, which are divided into certificate treasury bonds and electronic treasury bonds.
Certified Treasury bonds can only be purchased at bank branches. After you buy a certified treasury bond, the bank will give you a paper certificate, just like a certificate of deposit.
E-Treasuries must be purchased via mobile banking or online banking. At present, many treasury bonds are electronic treasury bonds, because it is more convenient to use electronic treasury bonds to buy treasury bonds.
Generally speaking, middle-aged and elderly people like to queue up at bank branches to buy certificate-type treasury bonds, while young people like to use mobile banking to buy electronic treasury bonds.
3.The timing of the issuance of government bonds.
The Treasury bond issuance date is from March 10 to October 10 at 8:30 a.m. each year, so if you want to buy Treasury bonds, you should pay attention to that date in advance. The initial amount of the treasury bond is 100 RMB, which is purchased in multiples of 100. The maturity of treasury bonds is generally 3 years and 5 years, which is also more suitable for ordinary people to consider, and the term is too long, such as 10 years, 20 years, 30 years and 50 years of long-term treasury bonds, it is not recommended to buy.
Treasury bills can be withdrawn in advance, but a commission of 1 1000 is deducted and interest is calculated on a fractional basis.
Savings bonds are paid in installments and can be withdrawn in advance during the holding period
For less than 6 months, early withdrawals are interest-free.
6 full months, less than 24 months. Early withdrawals, minus 180 days of interest.
24 full months, less than 36 months. Early withdrawals, minus 90 days of interest.
36 full months, less than 60 months. Early withdrawals, minus 60 days of interest.
4. Banks that underwrite treasury bonds. There are more than 40 banks in the country that can sell treasury bonds, including Bank of China, Agricultural Bank of China, Industrial Bank, China Construction Bank, Bank of Communications and Postal Savings Bank, a total of 6 large banks. Now the demand for treasury bonds is very large, and it takes a day or two for each issuance to be snapped up, so if you want to go to a bank branch to buy treasury bonds, you must prepare your ID card and bank card in advance, and the money in the bank card is enough. If you want to buy electronic treasury bonds, you need to take into account the purchase time of online mobile banking.
What is a Treasury reverse repo agreement? Why are Treasury reverse repo agreements also very safe?
Reverse repo of treasury bonds is actually a kind of lending and financing behavior with treasury bonds as collateral. What does this mean?
In fact, the enterprise needs to borrow money, and according to the agreed interest rate, the treasury bonds guarantee it, and the money is handed over to the enterprise. If the company cannot repay the principal and interest on time, there is no need to worry, at this time, the bond company will advance for the company that borrowed the money, and then the bond company will recover the national debt, and the national debt will definitely not be in arrears, just wait for the state to repay it.
The starting amount for reverse repo is RMB1,000 and increases in multiples of RMB1,000. The purchase of reverse repo of treasury bonds requires a handling fee, but the handling fee is not high. Treasury reverse repo maturities are usually shorter, with the most common being 1 day, 3 days, and 7 days.
Those who want to buy Treasury bonds through a buyback agreement must open an account and a Treasury bond buyback account through the company's app in order to trade with the company.
The reverse repo of treasury bonds is very safe, and the yield is not low, which can be said to be the ceiling of short-term financing.
In 2024, in addition to Treasury bonds and Treasury bond buyback agreements, there are two ways to save money that are suitable for us ordinary people.
The first type is bank fixed deposits. As a banker, I want to tell you that fixed deposits are the most suitable for ordinary people to save money, fixed deposits are guaranteed principal and interest, the amount is very low, only 50 yuan can be opened to start saving, and the term is also very flexible, which is very beneficial to the people. However, this year, you have to go to the bank to discuss with the bank and choose a series of techniques to save a fixed deposit, rather than handing over the money to the bank.
The second is Yue Bao and Coin Pass. Yu'e Bao and Coin Pass are basically current, basically risk-free**, and the 7-day annualized rate of return of Yu'e Bao is 2078%, the 7-day annualized rate of return of Coin Pass is 1997%, which is far more than the interest rate on many bank deposits. Yu'e Bao and Coin Pass are most suitable for ordinary people to save money, on the one hand, because they are very flexible and can be withdrawn at any time, and on the other hand, because you may not know that the yield of Yu Yu Bao and Coin Pass is even higher than the 2-year time deposit interest rate of the six major state-owned banks.
In addition, many people have asked me, can our money continue to be in the bank if the bank keeps cutting interest rates?
In other words, if we citizens don't keep their money in the bank, there are only four outcomes.
First, spend all your savings and work as a black worker. The result of not saving money is blind consumption, keeping money at home, it will produce an illusion of wealth, and you want to buy everything you see on the Internet, and in the end you will wait until the moment when you need money urgently, and you can't get a penny.
The second is to blindly invest in financial management and finance, and ultimately suffer heavy losses. If you can't see the deposit interest, you can use it to buy ** or manage money, and it is likely that the latter will also lose money, and the interest income of the latter is not as high as the deposit interest. In life, there are too many examples of this, taking out deposits from the bank, investing in financial management, and finally losing all your money.
The third is illegal fund-raising traps, investment and financial management traps, and pension and medical fraud. Evergrande Financial Management Lei, Zhongzhi Group Lei, and Industrial Trust Lei are living examples, and many middle classes have returned to the pre-liberation period overnight. In recent years, illegal fundraising with high rates of return has emerged one after another.
Fourth, lend money to family and friends, but in the end you don't get it back.
Finally, there are 3 things to note about the minimum deposit rate:
First of all, the drop in deposit interest rates is by no means a reason or excuse for Chinese citizens to easily invest in financial management, and safety always comes first.
Secondly, after the deposit rate is lowered, the interest rate of the money you previously deposited will not be reduced, it will be calculated according to the interest rate at the time of your deposit, such as before the interest rate is lowered, if the interest rate you deposited is a 3-year fixed interest rate of 35%, as a result of which the deposit rate was lowered to 2 the next day5%, then your three-year deposit is at 35% interest rate is calculated.
Thirdly, to say some more professional knowledge, the bond and deposit interest rate is the risk-free rate of return of the society, that is, the absolute rate of return without taking any risk, and is the most important benchmark to measure the overall return on investment of a region. If the risk-free rate of return falls, then the rate of return on any other form of investment in society as a whole will inevitably fall.