When we have surplus money in hand, if we don't need to use it in the short term, many friends will choose to deposit it in the bank for a fixed term, which is more secure, and there is a certain interest income after maturity. However, when we deposit the term, it also has an option of "automatic rollover", and many friends are not sure whether they need to open "automatic rollover", and what is the function of this automatic rollover? Today, let's talk to you about this "automatic rollover", which is directly related to our earnings, let's find out together!
1. What is automatic dumping?
First of all, let's understand what is "automatic rollover", which means that after the maturity of the specified deposit, the banking system will automatically roll over the principal and interest together into a fixed deposit of the same period, without the need for the depositor to operate in person. For example, we deposit a three-year fixed term of 100,000 yuan in the bank, and its interest rate is 2.65%, and when it matures in three years, it is the principal of 100,000 yuan plus 7,950 yuan of interest. If we apply for automatic rollover, the bank will automatically transfer the principal plus interest to the next three-year fixed cycle according to the listed interest rate of the day, without us having to go to the bank to handle it.
2. The advantages and disadvantages of handling automatic rollover.
We keep our money in the bank on a regular basis, especially some long-term periods, and we are likely to forget. If we do not apply for automatic rollover, the principal and interest will become current deposits in the bank after the maturity of the fixed period. However, if the automatic rollover is handled, then it will be automatically rolled over to the next cycle according to the listed interest rate of the day, and the interest difference between the current and the fixed period is relatively large. From this aspect, the automatic rollover can avoid the situation of forgetting, it is more convenient, and we do not need to come to the bank to go through the renewal procedures.
Although it will be more convenient to handle automatic rollover, it also has some drawbacks. Because the automatic rollover is calculated according to the bank's listed interest rate on the day, but there is a deviation between the listing interest rate and the strike interest rate of some banks, and the execution interest rate is usually higher. If we go to the bank to withdraw the money after maturity and then re-apply for the deposit, that is, manual transfer, it is calculated according to the implementation rate. For example, the current listed interest rate of large state-owned banks is 1.95%, but if we go to the bank to handle it manually, its execution interest rate is 2.35%. Take the same deposit of 100,000 yuan for three years to calculate, the interest rate of automatic transfer is 1.95%, and the interest rate of 100,000 yuan for three years is 5850 yuan, and the interest rate of manual transfer is 2.35%, and the interest is 7050 yuan, and the interest difference between them is 1200 yuan.
Not only that, in order to attract depositors to come to deposit, the bank will also handle the deposit gift activities from time to time, we manually go to the bank to handle the deposit, there may also be rice, flour oil, and even shopping card gifts, these gifts also have dozens of hundreds, or even more, which is equivalent to an invisible increase in interest rates. In addition, the interest rate of the bank is fluctuating, we can manually roll over, we can wait and see the fluctuation of the interest rate, so as to choose a higher interest rate to deposit. In addition, the bank also has a large amount of certificates of deposit, and if you deposit a large amount, you can also negotiate the interest rate. Therefore, if you want a higher interest, then it will be more cost-effective to manually handle the rollover.
Three: Do you need to handle automatic rollover?
Regarding whether you need to handle automatic rollover, I suggest that you still handle it better. While it may be more expensive to do it manually and you can still get a gift, it is easy for some people to forget. Compared with forgetting to change the current interest rate, automatic rollover is still more cost-effective. Many friends may think that the interest rate of manual rollover is higher, but in fact, it does not affect, even if you handle the automatic rollover, you can go to the bank to manually rollover after the expiration. If today's article is helpful to you, then click a follow, a like, and thank you for your support.