Can village and township banks deposit money in products with an annualized rate of return of 4.5%? Will there be any risks?
Today, I passed by a village bank at lunch and was attracted by the text on their LED scrolling display, "Annualized return 4.5%...... "For a while, I was very curious about what they said about the annual return of 4.5%? But I stood in front of the bank and waited for a long time, and the text on the scrolling screen still didn't return to the beginning.
What is the annualized rate of return of 4.5% given by village and township banks?
First of all, judging from the deposit interest rates given by major banks, the deposit interest rates of large and medium-sized commercial banks have fallen below 3%. The deposit interest rates of some small commercial banks are also constantly decreasing, and from the perspective of the deposit interest rates of banks in the market, there are basically no banks with deposit interest rates above 3.5.
From this, we can judge that the product with an annualized rate of return of 4.5% given by the village or township bank is most likely not a contractual fixed deposit product.
Will an annualized interest rate of 4.5% be a large certificate of deposit?
In fact, since the beginning of this year, large and medium-sized commercial banks have successively announced that they will no longer sell medium- and long-term large-denomination certificates of deposit, and some small banks have given one-year large-denomination certificates of deposit, with the highest annualized interest rate of less than 2%, and even some banks have directly announced that they will no longer sell large-denomination certificates of deposit.
Judging from the current situation of large-denomination certificates of deposit of banks across the country, the annualized interest rate of short-term large-denomination certificates of deposit is generally relatively low, and the medium- and long-term large-denomination certificates of deposit products issued by a very small number of banks are basically unavailable.
You must know that two years ago, a village bank in Henan Province had difficulty withdrawing money, so that the annualized interest rate of fixed deposits given by the bank at that time was only about 4.2%.
In the past two years, banks have lowered the interest rates on deposits many times, and the annualized interest rates on large-amount certificates of deposit of major banks have also dropped significantly.
The annualized interest rate of up to 4.5% is likely to be bank wealth management products
Today's banks not only have deposits and loans, but also sell a variety of wealth management products, and the advertised yield of these wealth management products is indeed relatively high.
Some wealth management products advertise a rate of return of 5%, it is likely that the yield of the product since its inception is 5%, or it is possible that the yield of the product in the past three months is 5%, so the yield advertised by these wealth management products is only a reference value.
As for what kind of reference is given for the promotional rate of return of wealth management products, this requires us to carefully check it when choosing.
As for the annualized rate of return of a certain wealth management product mentioned by the bank staff as high as 4.5%, it is likely that the rate of return they are talking about is the estimated return of the product.
Every bank wealth management product has an estimated return. How did this estimated return come from? It is the result of a simulation carried out by the bank's actuary under ideal conditions.
And how much income can such a wealth management product actually get? It all depends on the market. Since the breaking of rigid payment, except for bank deposit products, the yield of all wealth management product investment products is completely determined by the market.
This also means that once you buy such a financial product, then your income is determined by the market, and you may earn more if you are lucky, but if you are unlucky, there is even a risk of losing the principal.
You also need to pay special attention when buying the bank's wealth management products. Some financial products are easy to buy, but it will be difficult to withdraw the money, which may involve liquidated damages, handling fees and many other factors.
When purchasing such a wealth management product, it is necessary to ask the staff about the risks of the wealth management product and what kind of losses will be faced when withdrawing it in advance.
It could also be an insurance product
There are more and more insurance products in banks, especially in some bank outlets in remote areas, with a wide variety of insurance products, if you are not careful, you can't even distinguish the difference between it and deposits.
Some media have repeatedly reported that some elderly people in rural areas went to the bank to make deposits, but inexplicably ended up buying insurance. When I took out the money after the expiration of the period, I found that not only did I not make a profit, but I also lost the principal.
The bank's insurance products can be divided into two types, one is the term insurance product and the other is the single payment insurance product. In layman's terms, some insurance products are paid in multiple installments, while some insurance products are paid in a lump sum.
Some insurance products do have higher returns, but if you want to get such a high return, you may have a relatively long investment period, and some may even be as long as thirty or forty years.
For example, a bank has launched a term payment insurance product, paying 10,000 yuan a year for 30 consecutive years, and the policyholder can only receive the corresponding income after the age of 65.
If you withdraw the principal amount of the deposit in advance, you need to face the risk of default, and such liquidated damages are relatively high.
Most insurance products have a 7-day cooling-off period, and some even have a 14-day cooling-off period during which the policy is surrendered. You do not need to bear any losses, but once you exceed this cooling-off period, if you want to surrender the policy early, you need to bear the corresponding liquidated damages.
Moreover, the income of insurance products is not fixed, and it also changes with the changes in the market. The market is lucky, and the bad luck also exists.
Now that the bank's deposit yield is so low, is it still cost-effective to keep money in the bank?
With the major banks lowering deposit interest rates, for the vast majority of ordinary people, the income from deposits has decreased. But how much savings do most ordinary people have? Who lives on that little interest on their deposits?
Although there are many investment and wealth management products now, stocks, funds, futures, etc., how many can really get stable income and high returns?
Especially for the vast majority of ordinary people, without the corresponding professional financial knowledge and investment experience, blind investment is likely to face losses.
The market environment is like this, and some investors have successively deposited their money in the bank, not to mention us ordinary people.
Although the current interest rate on bank deposits is relatively low, relatively speaking, bank deposits are kept in the bank with guaranteed principal and interest, at least there is no need to worry about losses.
Of course, it is best to go to the bank counter and use the paper deposit receipt to make the corresponding deposit.
Write on the back
In the past two years, there have been more and more deposit products in the bank, which is indeed difficult to distinguish for those who are older, especially those who are so enthusiastically recommended by some staff.
Therefore, we must be careful and careful when handling deposits in the bank, especially when we see these products with a yield that significantly exceeds that of ordinary time deposits, which are likely to be insurance products or bank wealth management products.